Malaysia Stock Market Struggles Near 1,700 Point Mark Amid Fed Rate Outlook

The FTSE Bursa Malaysia KLCI is testing the psychological 1,700‑point level after three consecutive session declines, slipping modestly each day. Market sentiment is being shaped by expectations around U.S. Federal Reserve interest‑rate policy, with weaker U.S. payroll data feeding hopes of a pause in rate hikes.

Foreign investors have continued to pull money out of Malaysian equities, recording a net outflow of RM2.4 billion in June and a further RM145 million the previous day, adding pressure to the index. Meanwhile, easing tensions between the United States and Iran and the reopening of the Strait of Hormuz have helped lower crude‑oil prices, providing some relief to energy‑related concerns. Sector‑wise, technology stocks have surged over 30 % year‑to‑date on AI and data‑center demand, while other sectors show modest gains.