KUALA LUMPUR, June 30 (Bernama) -- Bursa Malaysia ended the first half of the 2026 trading year on a softer note, following a range-bound trading session as investors remained cautious amid the lack of fresh domestic catalysts. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said regional equities finished broadly higher, supported by stronger-than-expected business activity data from China and continued strength in technology stocks. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.85 points to 1,664.06 from Monday’s close of 1,665.91. The index opened 1.37 points higher at 1,667.28 and fluctuated between an intraday low of 1,661.80 and a high of 1,669.88 throughout the day. Market breadth was positive, with gainers outnumbering decliners 562 to 415, while 589 counters were unchanged, 1,124 untraded, and 79 suspended.
Key Takeaways
- Wall Street closed at fresh record highs, supported by easing US-Iran tensions and a rebound in technology stocks.
- Maybank Research raised Singapore's 2026 GDP forecast to 4.6%, citing sustained AI-driven strength in manufacturing and semiconductors.
- Singapore equities opened lower, with investors locking in gains despite an improving economic outlook.
- DBS lowered Multiplier Account interest rates, reflecting a softer interest rate environment.
- CapitaLand Ascott Trust, Keppel Infrastructure Trust and Yangzijiang Financial reported positive corporate developments, offering stock-specific opportunities.
Market Overview
Singapore shares opened modestly lower on Tuesday, even as global risk appetite improved following another record-setting session on Wall Street. The Straits Times Index (STI) slipped 0.49%, with investors taking a cautious stance after recent gains.
In the US, the Dow Jones Industrial Average closed at a fresh all-time high, while the S&P 500 and Nasdaq Composite posted strong gains as concerns over escalating tensions between the US and Iran eased. Technology stocks led the rally, with renewed buying interest returning to AI-related companies.
AI Boom Strengthens Singapore's Growth Outlook
A key development for the local market came from Maybank Research, which upgraded its 2026 Singapore GDP growth forecast to 4.6%, reflecting stronger confidence in the country's manufacturing sector.
Although manufacturing output moderated to 13% year-on-year in May from April's 16.5% pace, growth remained firmly supported by the electronics sector, where production rose 35.8%. Semiconductor output also climbed 37%, driven by sustained demand for AI servers, memory chips and advanced computing infrastructure.
Meanwhile, Singapore's factory gate prices declined slightly on a monthly basis due to lower oil prices, while non-oil manufacturing prices continued to increase, indicating resilient pricing power across higher-value manufacturing industries.
Stocks in Focus
DBS Group announced lower interest rates for its Multiplier Account, reflecting changing market interest rate conditions and a more competitive retail banking environment.
CapitaLand Ascott Trust delivered stronger distributions, supported by improved operating performance across its diversified hospitality portfolio in Singapore, China and Japan.
Elsewhere, Keppel Infrastructure Trust completed its investment in an Australian waste-to-energy facility, strengthening its portfolio of stable infrastructure assets. Yangzijiang Financial Holdings reported robust earnings growth alongside higher assets under management and an increased dividend, underscoring continued balance sheet strength.
Investment Outlook
Singapore's economic outlook continues to improve as AI-driven semiconductor demand supports manufacturing activity and export competitiveness. While near-term market performance may remain influenced by profit-taking and global macro developments, technology, industrials and quality dividend-paying companies remain well-positioned to benefit from stronger economic momentum in the second half of the year.
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