KUALA LUMPUR, June 22 (Bernama) -- Bursa Malaysia ended on a softer note today as investors engaged in profit-taking following the recent rebound in the local market, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 0.65 per cent, or 11.19 points, to 1,700.84 from last Friday's close of 1,712.03. The benchmark index opened 1.56 points lower at 1,710.47 and moved between 1,699.94 and 1,712.32 throughout the trading session. Market breadth was negative, with decliners outnumbering gainers 560 to 481. A total of 608 counters were unchanged, 1,649 untraded, and 14 suspended. Turnover slipped to 3.29 billion units worth RM2.40 billion from 3.45 billion units worth RM3.79 billion on Friday.
Markets are heading into a data-heavy and earnings-packed week, with inflation pressures from the Iran conflict and major corporate results set to shape investor sentiment.
Inflation in Focus as Energy Costs Rise
The key macro highlight will be the Producer Price Index (PPI), expected to reflect rising energy costs driven by the Iran war.
Higher oil prices are likely to:
- Push headline inflation higher
- Pressure corporate margins
- Influence Federal Reserve policy expectations
Investors will also monitor jobless claims and existing home sales for signals on the labour market and housing trends.
Bank Earnings Kick Off Season
Earnings season begins with major US banks:
- Goldman Sachs (GS.US)
- JPMorgan (JPM.US)
- Bank of America (BAC.US)
Strong trading revenues are expected, driven by heightened market volatility. Investors will focus on:
- Outlook amid geopolitical uncertainty
- Trends in credit quality and lending
- Exposure to private credit markets
AI and Semiconductor Earnings in Spotlight
Tech earnings will be closely watched, particularly:
- Taiwan Semiconductor
- ASML Holding
Both are expected to benefit from strong AI-driven demand, with potential:
- Margin expansion
- Upward guidance revisions
- Continued growth in advanced node chips (3nm, 2nm)
Netflix and Consumer Signals
Netflix is expected to:
- Potentially raise revenue and margin guidance
- Benefit from recent price increases
- Highlight strength in free cash flow generation
Meanwhile, PepsiCo may face margin pressure due to rising costs and supply disruptions.
Market Context: Volatility and Geopolitics
Markets are coming off their best week since November, driven by a temporary US-Iran ceasefire, but remain highly sensitive to:
- Geopolitical developments
- Energy price movements
- Central bank policy expectations
Investor Takeaways
- PPI data will be key, with energy costs likely pushing inflation higher.
- Bank earnings may show strong trading gains amid market volatility.
- AI-driven semiconductor demand remains a major growth theme.
- Consumer and corporate margins face pressure from rising costs.
- Markets remain headline-driven, especially by geopolitical developments.
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