PM’s commitment on GST provides market a clear policy outlook

Apex Research says it expects the local market to take a step back from the recent positive momentum amid the renewed volatility in Wall Street overnight.

“Downside, however, will be cushioned in response to growing anticipation around the upcoming Budget 2025 announcement scheduled for this Friday.

GST

PM Anwar Ibrahim’s comment on GST only being reinstated upon minimum wage being set to RM3,000 provides investors with more confidence and a clearer policy outlook,” it adds.

Investors will continue keeping an eye on US performance this week, with the release of key economic data and further corporate earnings still in focus.

“We expect the technology sector to turn downbeat amid the negative developments surrounding AI chip export from Joe Biden administration. Meanwhile, defensive-related sectors such as REIT and consumer may thrive today,” analysts say.

FBM KLCI

The FBM KLCI closed higher (+0.3%) on Tuesday, thanks to mild buying in consumer products and services, telecommunication and banking stocks, amid a mixed regional market performance. Sector wise, the Property sector (+2.5%) attracted the highest buying interest, while the Energy sector (-2.4%) topped the laggards following the pullback in crude oil prices.

Global Markets Review. The US stock market saw all three major indices slip into the red as disappointing outlook from ASML and concerns about tighter US restrictions on chip sales spurred a selloff in the semiconductor industry. Similarly, the stock markets in Europe were uniformly negative, dragged by the technology sector. The Asian markets were mixed, supported by a strong Wall Street close and investor optimism about corporate earnings.

Read more Business News