Malaysia’s KLCI index opens little changed at 1,579.92

Malaysia’s KLCI index opens little changed at 1,579.92

The Kuala Lumpur Composite Index (KLCI) opened at 1,579.92 on Wednesday, September 2, 2025, showing little change from the previous day's closing. The index remained relatively stable despite ongoing concerns about the US stock market and the impact of tariffs.

The KLCI opened 1.47 points lower at 1,575.23 amid heightened caution following a US Court of Appeals ruling that Trump's tariffs were illegal. This ruling has sparked uncertainty over the country's economic outlook, potentially impacting exports and the broader market sentiment [1].

According to TA Securities, the Malaysian market is expected to extend its consolidation phase as investors adopt a wait-and-see approach ahead of crucial events, including Bank Negara's overnight policy rate decision and US employment data due later this week [1]. Immediate support for the index is seen at 1,527, with stronger supports at 1,490 and 1,444. Immediate resistance is maintained at 1,610, with the next upside hurdle at 1,644, followed by stronger resistance at 1,684 [1].

Malacca Securities noted that the local market could turn defensive following the negative overnight performance in the US. Traders are expected to focus on defensive sectors such as banks, REITs, and consumer goods, with top picks including AmBank, IGB REIT, and 99 Speed Mart [1].

Separately, Sunway Healthcare Holdings Sdn Bhd, a subsidiary of Sunway Group, plans to list its healthcare division on the Bursa Malaysia stock exchange by the first quarter of 2026. The IPO involves 1.97 billion shares, with 1.4 billion offered for sale and 575 million new shares issued to retail and institutional investors. Proceeds from the IPO will fund capital expenditure for expansion and construction of new hospitals [2].

The global forecast for the Asian markets remains upbeat, with technology shares expected to lead the way. The European markets were up, and the US bourses were mostly higher, contributing to a positive outlook for the Asian markets. The KLCI finished slightly higher on Wednesday, following mixed performances from various sectors [3].

The central bank in Malaysia is expected to announce its decision on interest rates later today, with the benchmark lending rate likely to remain steady at 2.75 percent [3].

References:
[1] https://www.indopremier.com/ipotnews/newsDetail.php?group_news=IPOTNEWS&halaman=1&jdl=FBM_KLCI_stays_little_changed_as_US_court_deems_tariffs_illegal__Wall_St_falls&name=&news_id=204202&q=KLCI&search=y_general&taging_subtype=MARKETOVERVIEW
[2] https://www.reuters.com/business/healthcare-pharmaceuticals/malaysias-sunway-plans-list-healthcare-unit-2026-2025-08-29/
[3] https://www.nasdaq.com/articles/malaysia-stock-market-may-add-its-winnings-thursday-0