Bursa malaysia: Bursa Malaysia opened marginally lower today as traders adopted a wait-and-see approach amid cautious sentiment ahead of the second quarter 2025 (2Q 2025) gross domestic product (GDP) announcement later today. The announcement is expected to provide the first substantive insight into the economic impact of recent United States tariff announcements.
According to BERNAMA News Agency, at 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slightly decreased by 0.51 of a point to 1,580.54 from yesterday's close of 1,581.05. The benchmark index had initially opened 0.70 of a point higher at 1,581.75. Market breadth was positive, with advancers outnumbering decliners 110 to 108. A total of 231 counters remained unchanged, 2,123 were untraded, and seven were suspended. The turnover stood at 83.43 million shares worth RM36.44 million.
UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, noted that historically, GDP growth has been supported by private consumption averaging about 49 percent of nominal GDP and private investment at around 23 percent. He explained that if either of these core pillars significantly falls below their long-term averages, especially if private investment stays near its recent 18.5 percent level, it could undermine investor confidence and increase risk aversion in domestic markets.
Mohd Sedek highlighted that while GDP is a lagging indicator, it provides a crucial 'health check' on the macroeconomic landscape, influencing asset allocation and sector positioning. The upcoming GDP release will be examined for signs of changes in consumption momentum and investment interest, both of which are crucial for maintaining Malaysia's growth trajectory in the year's second half. Advance estimates indicate a growth of 4.5 percent, compared to the economists' consensus of 4.3 percent. He added that if the overall GDP falls below 4.0 percent, market sentiment could temporarily weaken, but the FBM KLCI would likely attract buy-on-weakness interest.
In terms of heavyweight stocks, Maybank, Public Bank, and CIMB each gained one sen to RM9.85, RM4.46, and RM7.21, respectively. Tenaga Nasional increased by two sen to RM13.70, while IHH Healthcare decreased by one sen to RM6.89. On the actively traded list, TWL, Pharmaniaga, Mtouche Technology, and Malaysian Resources Corporation remained flat at 2.5 sen, 17.5 sen, 3.5 sen, and 52 sen, respectively. Oriental Kopi fell by one sen to 97.5 sen.
On the broader market, the FBM Emas Index dropped 2.93 points to 11,757.99, the FBMT 100 Index decreased by 3.95 points to 11,539.77, the FBM Emas Shariah Index fell by 10.29 points to 11,698.16, and the FBM Mid 70 Index declined by 6.62 points to 16,683.31, while the FBM ACE Index rose by 2.62 points to 4,669.16. By sector, the Financial Services Index advanced 28.22 points to 18,078.75, the Plantation Index added 6.96 points to 7,588.61, but the Energy Index edged down 0.62 of a point to 738.87, and the Industrial Products and Services Index decreased by 0.75 of a point to 158.19.