KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Malaysia’s inflation outlook continues to soften, with OCBC Bank revising its 2025 headline CPI forecast down to 1.5%, from an earlier 2.0%, following a softer-than-expected June reading.
Key Highlights:
June 2025 Inflation: Headline inflation eased to 1.1% YoY, down from 1.2% in May and below consensus expectations.
Core Inflation: Held steady at 1.8% YoY.
Deflationary Pressure: Transportation inflation slowed to 0.3%, while communication services saw deeper deflation at -5.4%.
Flat Categories: Food, utilities, education, and insurance inflation remained unchanged.
What’s Driving the Forecast Revision?
OCBC’s downward revision is attributed to:
Weaker-than-expected H1 inflation (1.4% average).
Unlikely near-term rationalisation of RON95 fuel subsidies, which were previously expected to rise 20–25% by October.
Economic Outlook:
With GDP growth expected to moderate to 3.5% YoY in H2 2025 (vs. 4.4% in H1), and inflation staying subdued, OCBC believes there’s scope for further monetary easing.
Forecast: Another 25bps OPR cut by Bank Negara Malaysia in the coming months.
BNM’s current OPR: 2.75% (after a 25bps cut on July 9).
Next policy meetings: September 4 and November 6, offering potential windows for further cuts.
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