Discussion: Johor and Grab Hold Negotiations to Simplify Travel between Malaysia and Singapore under a Renewed Cross-Border Agreement
Let's Get Down to Brass Tacks:
The stock market in Kuala Lumpur saw a mixed bag of trading yesterday, with the FTSE Bursa Malaysia KLCI (FBM KLCI) sneaking above the finish line, but the broader market remained in the red.
At 5 pm, the FBM KLCI ended the day 0.31 of-a-point, or 0.02 per cent, higher at 1,511.95, recovering from earlier losses. The index commenced the day on a positive note, opening 0.25 of-a-point higher at 1,511.89, before fluctuating between 1,509.42 and 1,512.96.
However, with uncertainty prevailing worldwide, investors were cautious and refrained from making bold moves. A total of 488 stocks declined, while 361 gained. The rest remained unchanged, untraded, or suspended.
Turnover slipped to 2.42 billion units valued at RM1.79 billion compared to the previous day's 3.03 billion units worth RM1.92 billion.
The mounting geopolitical tensions over potential US involvement in the Israel-Iran conflict took a toll on key regional indices, causing risk appetite to plummet as President Trump met with senior advisors to review military options, including possible strikes on Iran.
Locally, our stance remains cautious due to these escalating tensions in the Middle East. We can only hope that peace talks between Israel and Iran will take place soon, easing tensions and restoring confidence in the local investment scene.
Rakuten Trade Sdn Bhd's vice-president Thong Pak Leng believes that buying opportunities may emerge in oil and gas and plantation stocks. For the moment, Thong maintains their weekly FBM KLCI target at the 1,500-1,530 range.
While the trade talks between the US and Malaysia continue, attention turned to the progress of these negotiations. Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Aziz and his delegation arrived in Washington to engage with US Trade Representative Jamieson Greer and senior officials, which marks a crucial moment in addressing tariff-related uncertainties that have cast a shadow over investor sentiment in recent weeks.
UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan observed that, despite the cautious outlook, selected domestically oriented sectors saw significant demand. Consumer discretionary and telecommunications stocks led the way, underscoring investor confidence in Malaysia's underlying economic resilience.
Adding to the encouraging narrative, Malaysia's impressive leap in the latest International Institute for Management Development (IMD) World Competitiveness Ranking (WCR) 2025- advancing 11 spots to 23rd globally-reinforces the country's reform momentum and macroeconomic credibility. This supports a positive medium-term outlook, particularly for the construction sector, where structural themes such as hyperscale data centre investments and the Johor-Singapore Special Economic Zone are expected to serve as key catalysts for growth[1].
Among heavyweights, Maybank gained 7.0 sen, Tenaga dipped 8.0 sen, Public Bank added 2.0 sen, CIMB slid 1.0 sen, and IHH Healthcare eased 4.0 sen. The most active stocks were Tanco Holdings, SNS Network Technology, Magma Group, NexG, and Alam Maritim Resources.
The FBM Emas Index fell 1.47 points, the FBMT 100 Index dropped 2.44 points, the FBM Emas Shariah Index decreased by 8.03 points, the FBM ACE Index slipped 1.63 points, and the FBM 70 Index shrank 22.21 points.
The Plantation Index lost 12.70 points, but the Energy Index rose 1.84 points. The Financial Services Index climbed 24.86 points, and the Industrial Products and Services Index declined by 0.09 of-a-point[2].
[1] Enrichment Data: Malaysia's GDP growth in Q1 2025 was 4.4%, below expectations, leading several research houses to revise down their full-year economic growth estimates to around 4.2%, lower than the official forecast of 4.5% to 5.5%. The outcome of the trade negotiations with the US is crucial in determining whether the growth could improve, as successful negotiations could provide a boost to Malaysia's economy and investor confidence.
[2] [Enrichment Data: Sector-wise, the performance of the Plantation Index, Energy Index, Financial Services Index, Industrial Products and Services Index, and others was not further specified in the article].
- Despite the cautious outlook, some locally oriented sectors in Malaysia, such as consumer discretionary and telecommunications, still attracted significant demand, indicating investor confidence in the country's economic resilience.
- In the International Institute for Management Development (IMD) World Competitiveness Ranking (WCR) 2025, Malaysia made a significant leap, advancing 11 spots to 23rd globally, reinforcing the country's reform momentum and macroeconomic credibility.
- The ongoing trade talks between the US and Malaysia are critical for addressing tariff-related uncertainties that have affected investor sentiment in recent weeks.
- Tech stocks in Malaysia, such as those in the telecommunications sector, may have potential given the increasing demand from investors due to the country's economic reform momentum.
- The news of potential US involvement in the Israel-Iran conflict impacted key regional indices, causing risk appetite to plummet and leading to a cautious approach in the stock market.
- Amidst the uncertainty, some sectors like oil and gas and plantation may offer buying opportunities, according to Rakuten Trade Sdn Bhd's vice-president Thong Pak Leng. However, he maintains a weekly FBM KLCI target in the 1,500-1,530 range.
