The FBM KLCI index advanced 3.6% in local terms in July. Top performers for the month were Plus Express and Genting while plantation stocks and utilities stocks underperformed. The ringgit strengthened slightly against USD to 3.19 as the central bank raised the overnight policy rate by another 25 bps to 2.75%. The government took its first step towards the rationalization of its subsidy program by hiking petrol, gas, diesel and sugar prices. Corporate action was plentiful with Genting Malaysia proposing to acquire Genting Singapore's UK operation for a cash consideration of GBP 340m. Khazanah won the battle for control of Singapore listed Parkway Holdings after it raised its offer from S$3.78 to S$3.95 per share. Ananda Khrishnan announced plans to take Measat Global and Tanjong Plc private.
Interest in the plantation sector may return as crude palm oil price rebounced 7% in July after a lackluster performance in the past quarter.