MARKET PULSE AM JUNE 23, 2025 [WATCH]

KUALA LUMPUR: News on the latest moves on the stock and crypto markets.
Bursa Malaysia opened lower this morning as investors turned cautious amid rising geopolitical tensions in the Middle East.
The US joining the war against Iran over the weekend, despite Trump's earlier two-week claim, has added a fresh layer of uncertainty to the markets.
With volatility likely to rise, the FBM KLCI is expected to stay within the 1,480 to 1,500 range today.
In the crypto market, Bitcoin dipped to RM431,676.
Ethereum declined to RM9,575, while Solana fell to RM566.

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New Straits Times

25 minutes ago

• New Straits Times

MARKET PULSE PM JUNE 23, 2025 [WATCH]

KUALA LUMPUR: News on stock, crypto and ringgit moves. Bursa Malaysia rebounded sharply to end higher, lifted by bargain hunting and steady local investor interest. The Energy sector led gains as Iran's threat to block the Strait of Hormuz in response to US strikes raised concerns over global oil and gas supply disruptions. Meanwhile, the ringgit eased against the greenback, settling at 4.2880. In the crypto market, Bitcoin rose to RM437,400. Ethereum also climbed to RM9,686, while Solana inched up to RM576. That wraps up today's Market Pulse.

Focus Malaysia

an hour ago

• Focus Malaysia

Global markets on edge as conflict risks push oil prices higher

THE US strikes on Iran's nuclear facilities over the weekend has marked its direct involvement in the Israel-Iran war, which we fear could escalate an already volatile situation in the Middle East. If this conflict is prolonged, it could further destabilise the fragile market sentiment, which has been weighed down by weak economic conditions. In the short-term, the uncertainty could prop up oil prices, exacerbating inflationary pressure and sending bond yield higher, especially in the developed countries – US, Europe, Japan. Iran's parliament has now voted to close the Strait of Hormuz, where c.30% of global seaborne oil trade flows through the chokepoint. 'We believe the market will remain in a cycle of risk aversion with investors shying away from risky assets, until peace and stability prevail,' said Public Investment Bank (PIB). Although global market has regained losses since the announcement of a 90-day tariff pause in April, this trend could reset. We maintain our bearish outlook, favouring defensive stocks that predominantly focusing on the domestic market i.e. Maybank, Telekom, TNB, CCK and IGB Comm REIT. While we have a neutral call on the oil and gas sector, we believe there is upside risk in the immediate term, we have Outperform rating on Hibiscus and Bumi Armada. Since the start of the Israel-Iran conflict on 13 June, the US has largely refrained direct engagement in the war with its Secretary of State Marco Rubio stressing Israel has acted unilaterally while President Donald Trump announcing, just last week, that he will decide whether or not the US gets involved within the next two weeks. However, within days, the US has changed the course of the conflict, launching strikes on three Iranian nuclear facilities on 21 June. Promising to be a 'peacemaker' in his run up to return to the White House, Trump has taken a dramatic step by bringing US directly into the conflict. Should this escalate into a protracted conflict, it could strain the US' fiscal deficit even further, which is projected at about 6.2% of GDP in 2025. This should also increase its swelling debt, which stood at about 123% of GDP. Note that US artillery stockpiles are depleting quickly due to increased demand while the urgency to replenish may be constrained by limited rare earth supplies from China. The US military industrial base is already facing challenges in ramping up production to meet increasing demand from Ukraine and Gaza. Although Trump claimed the Iranian nuclear facilities had been destroyed by the US bunker-blaster, the extent of damage to the underground enrichment plants remains unclear, especially Fordow which is believed to be buried at a depth of 80-90m with mountain above ground. Iran could retaliate by closing the Strait of Hormuz or launching attacks on the US military base. The US operates a broad network of military sites, both permanent and temporary, across approximately 19 locations in the Middle East. The uncertainty in the Middle East is likely to cause a spike in oil prices as the region contributes to 30% of the world's total output, with Iran being the third-largest OPEC producer. If there is no material disruption to global supply of oil with the Strait of Hormuz remains accessible (the final decision now lies with Iran's national security council after the parliament voted to close the critical oil trade route), this may well be short-lived, as there is still ample supply of oil in the market while global demand could weaken due to slowdown in international trade following the increase in tariffs. Nonetheless, given the uncertainty and risk of escalation, oil prices are likely to surge in the immediate term while investors would rush to safe-haven assets (likely to be gold or JPY instead of USD or Treasuries) and avoid risky investments such as equities. US CPI remains under control partly due to low energy prices but a protracted conflict in the Middle East could potentially lead to a sustainable rise in energy prices, increasing the likelihood of the US economy slipping into a stagflation in 2H 2025. —June 23, 2025 Main image: Maukerja

New Straits Times

an hour ago

• New Straits Times

Bursa Malaysia rebounds to close at day's high on bargain hunting

KUALA LUMPUR: Bursa Malaysia reversed its morning losses to close higher, supported by bargain hunting and sustained local investor interest. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.87 points, or 0.92 per cent, to 1,516.61 from Friday's close of 1,502.74. The index opened 9.55 points lower at 1,493.19 and fell as low as 1,488.89 in the morning session before trending up to close at its intraday high. The broader market, however, was negative, with losers outpacing gainers 697 to 274, while 490 counters were unchanged, 932 untraded and 41 suspended. Turnover surged to 3.09 billion units worth RM1.91 billion against 2.6 billion units worth RM3.37 billion on Friday. UOB Kay Hian Wealth Advisors Sdn Bhd investment research head Mohd Sedek Jantan said the FBM KLCI recovered from an early dip below a key psychological level as markets reacted impulsively to the United States' strikes on three Iranian nuclear facilities over the weekend. He noted that while the initial sell-off reflected heightened geopolitical anxiety, the index rebounded strongly, supported by bargain hunting and sustained local investor interest. "Historically, markets tend to absorb such shocks relatively quickly, with the direct impact of geopolitical risks often proving short-lived," he told Business Times. Sedek added that the ongoing Iran-Israel conflict has led to a spike in global oil prices, but the immediate pass-through to domestic inflation remains limited. Meanwhile, he said, export-oriented stocks may derive temporary support from a strengthening ringgit, as currency appreciation can lower import costs and reflect greater investor confidence. "However, this advantage may be offset if global demand slows or trade orders are delayed—developments that could weigh on revenue visibility and corporate earnings in the coming quarters," he said. Even though the ringgit was slightly weaker today, Sedek said the exchange rate is still considered stronger compared to last year's average.