KUALA LUMPUR, July 9 (Bernama) -- Bursa Malaysia closed lower on Thursday as renewed geopolitical tensions in West Asia weighed on investor sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 5.97 points, or 0.36 per cent, to 1,677.64 from Wednesday's close of 1,683.61. The benchmark index opened 2.62 points lower at 1,680.99, and moved between 1,676.18 and 1,683.80 throughout the session. However, market breadth was slightly positive, with gainers leading losers 533 to 504, while 547 counters were unchanged, 1,112 untraded, and 12 suspended. Turnover slipped to 2.64 billion units valued at RM2.19 billion from 2.96 billion units valued at RM2.18 billion on Wednesday.
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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