KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Positive fundamentals, easing bets, and innovation trends drive investor interest
China’s healthcare sector is regaining investor attention, buoyed by improving liquidity, stronger fundamentals, and a favorable macro backdrop. Analysts remain optimistic, citing a potential earnings beat in 3Q25 and a sustained recovery in in-hospital prescription volumes.
Macro Tailwinds: Policy & Liquidity Shifts Support Upside
Weaker US jobs data has raised expectations for global monetary easing in 2H25, offering further support for defensive growth sectors like healthcare.
US drug pricing concerns, including the potential return of the Most Favored Nation policy, and centralized biosimilar procurement in Anhui, are viewed as manageable, with limited near-term sector impact.
Uncertainty surrounding US Treasury markets may trigger a shift in global capital flows toward healthcare equities, especially those linked to innovation.
Sector Trends: Innovation Leads the Charge
Prescription volumes rose MoM in July, pointing to steady recovery across the system.
Broader adoption of innovative drugs is expected to lift sector earnings in 3Q25.
Analysts believe the sector has moved past its trough, with scope for earnings surprises and further rerating.
Key Corporate Catalyst: CSPC’s GLP-1 Drug in Focus
CSPC Pharmaceutical Group (1093-HK) announced regulatory progress for its semaglutide injection, used for type 2 diabetes. The drug, classified as a Category 2.2 chemical, features a novel formulation of a known compound with clinical advantages. Its acceptance by the China National Medical Products Administration marks a potential new revenue stream in the high-growth GLP-1 space.
Top Beneficiaries in the Sector
| Company Name | Ticker | YTD Performance |
|---|---|---|
| CSPC Pharmaceutical Group Ltd | 1093-HK | +109.21% |
| Hansoh Pharmaceutical Group | 3692-HK | +109.84% |
| Akeso Inc | 9926-HK | +168.53% |
| Sino Biopharmaceutical Ltd | 1177-HK | +133.75% |
| Sinopharm Group Co Ltd | 1099-HK | -11.33% |
| China Medical System Holdings | 867-HK | +73.77% |
Takeaway:
China’s healthcare sector appears positioned for further upside, supported by innovation, policy clarity, and global fund reallocation. Investors should keep an eye on upcoming earnings catalysts and drug approvals, particularly in the biotech and specialty pharma segments.
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