Lack of excitement following Budget 2025 contributed to muted local market sentiment

The FBM KLCI closed flat after the Budget 2025 announcement, with limited investor interest. Trading remained quiet in the lower sectors, and the property sector was the weakest performer, down by 1.3%.

Global Markets Review: US stock markets dipped, led by the Dow, as 10-year Treasury yields rose to 4.2%. European markets also declined amid anticipation of corporate earnings and heightened Middle East tensions, while Asia-Pacific markets were mixed as traders awaited China’s loan prime rate announcement.

Local market sentiment

Market Outlook: The lack of excitement following Budget 2025 contributed to muted local market sentiment, despite strong GDP data for Q3 2024. Investors are likely to see continued downward pressure and volatility. Labor-intensive sectors like construction and manufacturing may face challenges due to the government’s decision to maintain the freeze on migrant worker quota applications, keeping foreign workers at 15% of the total workforce. US home sales data is expected to impact the markets soon.

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Staff Writer

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