Kuala lumpur: Bursa Malaysia is poised for gains today after Bank Negara Malaysia (BNM) announced that the Malaysian economy expanded by 4.4 per cent in the second quarter of 2025 (2Q 2025), equivalent to 4.4 per cent growth in the first half of 2025, said an analyst.
According to BERNAMA News Agency, the Malaysian economy's 4.4 per cent growth in 2Q 2025 was driven by robust domestic demand, marked by increased household spending. This performance followed a 5.9 per cent expansion in 2Q 2024. The latest GDP growth surpassed the consensus forecast of 4.3 per cent from institutions such as UOB Kay Hian, Maybank Investment Bank, Hong Leong Investment Bank, and Bank Muamalat, although it fell slightly short of the 4.5 per cent advance estimate issued last month.
At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 6.66 points to 1,574.39 from yesterday's close of 1,581.05. The benchmark index had opened 0.70 of a point firmer at 1,581.75 and fluctuated between 1,571.19 and 1,581.79 throughout the morning trading session. Market breadth was negative with 508 losers outpacing 302 gainers, while 449 counters were unchanged, 1,313 untraded, and seven suspended. Turnover stood at 1.11 billion units worth RM812.76 million.
UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, highlighted that the 2Q 2025 GDP print reaffirmed the resilience of the domestic economy despite an increasingly uncertain global trade policy backdrop. He noted that the FBM KLCI opened softer at 1,581.75 and briefly touched 1,571.22 at 11.13 am, but sentiment is expected to stabilise and the index to recover as investors digest the stronger-than-expected GDP data.
Key domestic demand drivers showed strength, with private consumption rising from RM257.65 billion in 1Q 2025 to RM263.18 billion in 2Q 2025, and gross fixed capital formation increasing from RM91.67 billion to RM97.67 billion over the same period. These components form the cornerstone of domestic growth and are set to influence market direction in the near term, he told Bernama.
He emphasised the sequential gains in both private consumption and gross fixed capital formation, indicating the sustainability of Malaysia's economic momentum. The data suggest a durable growth trajectory and a constructive market outlook.
Mohd Sedek stated that for investors, the data provide reassurance that domestic demand will remain a reliable engine for corporate earnings, thereby reducing reliance on more volatile external markets. This resilience should continue to support equity valuations, particularly in consumer-oriented, construction, and infrastructure-linked sectors, while bolstering broader investor confidence in Malaysia's medium-term prospects.
Among the heavyweights, Public Bank and CIMB added 1.0 sen to RM4.46 and RM7.21, respectively. Tenaga Nasional and IHH Healthcare eased 6.0 sen each to RM13.62 and RM6.84, while Maybank remained flat at RM9.84. Among the most active counters, Tanco gained 1.0 sen to 73 sen, Oxford Innotech expanded 1.5 sen to 42.5 sen, Zetrix AI inched down half-a-sen to 89.5 sen, while TWL and Salutica were flat at 2.5 sen and 20.5 sen.
Across the broader market, the FBM Emas Index slid 47.38 points to 11,713.54, the FBMT 100 Index trimmed 48.11 points to 11,495.61, the FBM Emas Shariah Index decreased 74.31 points to 11,634.14, and the FBM Mid 70 Index declined 67.24 points to 16,622.69, but the FBM ACE Index rose 30.34 points to 4,696.88. Sector-wise, the Financial Services Index rose 24.83 points to 18,075.36, the Plantation Index fell 66.12 points to 7,515.53, the Industrial Products and Services Index inched down 1.42 points to 157.52, and the Energy Index shaved 0.84 of a point to 738.65.