KUALA LUMPUR, Jan 28 (Bernama) -- Bursa Malaysia snapped its five-day winning streak to close lower on Wednesday, as investors took profit following a cumulative gain of 4.25 per cent over the past five sessions, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.76 points or 0.83 per cent to 1,756.49 from Tuesday’s close of 1,771.25. The market bellwether opened 1.46 points lower at 1,769.79, marking the day’s high, and hit a low of 1,750.05 during the mid-afternoon session. Market breadth was negative with losers trouncing gainers 876 to 384, while 525 counters were unchanged, 964 untraded and 94 suspended. Turnover improved to 3.65 billion units worth RM4.41 billion from Tuesday's 3.58 billion units worth RM4.46 billion.
Inflation Overview:
- Consumer Price Index (CPI) in Malaysia rose 1.5% year-on-year in February 2025, reflecting a slight slowdown compared to the expected 1.6% increase.
- The housing and utilities sectors saw a deceleration in price growth, contributing to the overall slowdown in inflation.
Key Inflation Drivers:
- Food & Non-Alcoholic Beverages: These prices increased by 2.5% year-on-year, with this category holding a significant 29.8% weight in the CPI calculation.
- Core Inflation: This, which excludes volatile food prices and government-controlled items, rose 1.9% year-on-year.
Sectoral Inflation (February 2025):
- Food & Beverages: +2.5% YoY
- Housing, Utilities & Fuels: +2.3% YoY
- Transport: +0.7% YoY
- Information & Communication: -5.3% YoY (a notable decrease)
- Personal Care & Miscellaneous Services: +3.7% YoY
- Furnishings & Household Maintenance: +0.3% YoY
Outlook for 2025:
- Inflation Forecast: RHB projects 2.4% inflation in 2025, up from 1.8% in 2024, driven by easing global commodity prices and moderate domestic demand.
- Fuel Subsidy Reform: The upcoming reform in mid-2025 is expected to have a limited impact on inflation if implemented gradually.
Monthly Data:
- On a month-on-month basis, CPI rose 0.4% in February, a significant improvement from January’s 0.1% decrease.
Conclusion:
- Inflation in Malaysia is expected to stay manageable through 2025, with sectors like food, housing, and transport continuing to drive price changes, but overall inflation remaining relatively stable.
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