Market expects gains following Budget 2025

The FBM KLCI rose by 0.6%, outperforming regional markets before the Budget 2025 announcement. The REIT sector saw the highest gains (+0.1%), while the Telecommunications & Media sector led losses (-0.6%). Globally, US stock markets were mixed, with semiconductor strength offset by late pullbacks, while European markets were mostly positive. Asian markets fell due to underwhelming Chinese housing policy news, with Japan’s Nikkei (-0.7%), South Korea’s Kospi (-0.04%), China’s SSE (-1.1%), and Hong Kong’s HSI (-1.0%) all declining.

Budget 2025

Looking ahead, the market expects gains following the Budget 2025 announcement, with consumer, construction, property, and renewable energy sectors favored. Lower-tier stocks are also seeing interest from bargain hunters and foreign funds. In the US, positive macroeconomic data, like strong retail sales, suggest a lower likelihood of rate cuts, which could benefit the market. Key attention remains on corporate earnings and the US presidential election.

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Staff Writer

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