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.
Key Takeaway
Malaysia’s industrial production surged +3.0% YoY in June, sharply beating expectations of +1.2% and accelerating from May’s +0.3% — a signal that 2Q GDP growth is likely to hit 4.5%, with upside potential to 4.6%, according to RHB.
Sector Drivers
Manufacturing and mining led the improvement, suggesting momentum is broadening beyond export recovery.
The upbeat print reflects resilience in domestic output despite global trade uncertainties.
Risks on the Radar
RHB flags two headwinds ahead: the White House’s proposed 100% tariff on foreign semiconductors, and Malaysia’s expanded Sales and Services Tax (SST).
However, the tariff being reduced to 19% versus the initially announced 25% has softened sentiment risk and could support external demand over time.
Policy Tailwinds
The 13th Malaysia Plan — with MYR611 billion in funding and a projected annual GDP growth target of 4.5%-5.5% through 2030 — reinforces the manufacturing sector’s long-term role in the economy.
Outlook
RHB maintains its 2025 GDP forecast at 4.2%, with second-quarter GDP data due next week expected to validate the strength in industrial activity.
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