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EQ8MY25 H1 2025 Report: Navigating a Turbulent Market
Welcome back to our deep-dive series on company financials. Today, we’re unpacking the semi-annual report for the EQ8 Dow Jones Islamic Market Malaysia Titans 25 ETF (EQ8MY25), covering the period from January 1 to June 30, 2025. As one of Asia’s pioneering and largest Shariah-compliant ETFs, EQ8MY25 offers a direct window into the performance of Malaysia’s 25 largest Shariah-compliant securities. This report reveals a fund navigating significant external headwinds, reflecting a challenging period for the Malaysian equity market. Let’s break down the key figures and what they mean for investors.
Core Data Highlights: A Tale of Two Halves
The first half of 2025 proved to be a challenging period. Global trade tensions and tariff uncertainties weighed heavily on the Malaysian market, and this is clearly reflected in the fund’s performance. Despite the market downturn, the fund successfully met its primary objective of closely tracking its benchmark index, the Dow Jones Islamic Market Malaysia Titans 25 Index (DJIM25).
Overall Financial Performance
The fund’s Net Asset Value (NAV) per unit saw a decrease, mirroring the broader market sentiment. Here’s a direct comparison with the same period last year, which paints a clear picture of the shifting market dynamics.
For the period ended 30 June 2025
Net Asset Value (NAV) per Unit: RM 0.9691
Net Loss for the period: (RM 9,704,272)
NAV Price Return: -6.91%
For the period ended 30 June 2024
Net Asset Value (NAV) per Unit: RM 1.0492
Net Income for the period: RM 7,862,634
DJIM25 Total Return Index (H1 2025): -6.59%
The contrast between the net loss in H1 2025 and the net income in H1 2024 underscores the tough operating environment. The fund’s NAV performance was in line with its benchmark, the DJIM25 Total Return Index, which decreased by 6.59% during the same period. It’s also worth noting that for the financial period under review, the fund did not declare any income distributions.
Portfolio Insights: Strategic Positioning
The EQ8MY25 fund employs a replication strategy, investing in the constituents of the benchmark index to mirror its performance. As of June 30, 2025, 99.8% of the fund’s assets were invested in listed Shariah-compliant securities. Here are the top ten holdings, which represent the titans of Malaysia’s Shariah-compliant market:
| Stock | % of NAV |
|---|---|
| Tenaga Nasional Berhad | 15.8% |
| IHH Healthcare Berhad | 8.1% |
| Press Metal Aluminum Holdings Berhad | 7.9% |
| SD Guthrie Berhad | 6.7% |
| Petronas Gas Berhad | 6.6% |
| Telekom Malaysia Berhad | 5.2% |
| CelcomDigi Berhad | 5.2% |
| Kuala Lumpur Kepong Berhad | 4.6% |
| IOI Corporation Berhad | 4.5% |
| Petronas Chemical Group Berhad | 3.9% |
Compared to the end of 2024, there were notable shifts in sector allocation. The fund increased its exposure to Utilities, Telecommunications & Media, and Plantation sectors while reducing its weight in Health Care and Technology. This rebalancing reflects the quarterly reviews performed by S&P Dow Jones to ensure the index accurately represents the market.
Risk and Prospect Analysis
Market Environment: A Storm of Tariffs and Uncertainty
The first half of 2025 was dominated by global trade frictions, particularly the escalating U.S.-China tariff war and new baseline tariffs announced by the Trump administration. This created significant volatility, causing sharp selloffs in export-oriented and technology-linked stocks globally. The Malaysian equity market was not immune, underperforming its ASEAN peers with significant foreign net outflows. Year-to-date, the FBM KLCI, FBM 100, and FBM Shariah indices fell by 6.7%, 8.4%, and 9.2% respectively.
Outlook: Cautious but Watchful
Looking ahead, the report adopts a cautious tone. The rise in global tariffs is expected to be a drag on global trade and growth. The focus will be on bilateral negotiations, especially between the U.S. and China, which will be a key factor to watch. In this environment of heightened external uncertainty, Malaysia’s GDP growth and corporate earnings are subject to potential downward revisions. Export-oriented sectors are expected to bear the brunt of the impact, while domestic-oriented sectors may prove more resilient.
Summary and Key Considerations
The EQ8MY25’s H1 2025 report clearly illustrates the impact of a challenging global economic landscape on the Malaysian market. The fund performed as designed, closely tracking its benchmark index amidst the downturn. For unitholders, this period highlights the fund’s direct exposure to the performance of Malaysia’s leading Shariah-compliant companies and, by extension, their sensitivity to global trade dynamics. While we do not provide investment recommendations, investors should be mindful of the following key risks and factors outlined in the report:
- Global Trade Tensions: The ongoing tariff negotiations, especially between the US and China, remain the most significant factor influencing market sentiment and performance.
- Impact on Malaysian Economy: Increased external uncertainties could lead to downward revisions of Malaysia’s GDP growth and corporate earnings forecasts.
- Sector Vulnerability: Export-oriented sectors are particularly exposed to the direct and indirect effects of tariffs and potential demand destruction.
- Market Volatility: The fund’s value will continue to be influenced by market fluctuations driven by economic data, policy shifts, and geopolitical events.
A Professional’s Take
The EQ8MY25’s performance in the first half of 2025 is a testament to its core objective: mirroring its benchmark. While the downturn reflects broader market anxieties, the fund’s structure provides investors with transparent exposure to Malaysia’s top Shariah-compliant companies. The key challenge ahead will be how these titans navigate the choppy waters of global trade policy. The fund’s ability to weather this storm will depend entirely on the resilience and strategic agility of its underlying constituents.
What are your thoughts on the outlook for Malaysia’s top Shariah-compliant companies? Do you think domestic-oriented sectors will provide a sufficient buffer against external pressures?
Share your views in the comments below!
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