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Market Highlights
Market Outlook
Mon, 27 Jul 2026 07:28 am
Market Strategy: Volatility is the New Normal

Global shipping risks have expanded beyond the Strait of Hormuz as disruptions increasingly threaten the Red Sea and Suez Canal.

Weak Chinese crude demand should help cap oil price upside, reducing the likelihood of a prolonged energy shock.

We maintain our FBM KLCI year-end target of 1,787, although heightened geopolitical tensions and domestic political developments are likely to keep market volatility elevated.

We continue to characterise the current environment as a Kangaroo Market, where rapid swings in sentiment create opportunities for selective accumulation.

Our top picks are Mi Technovation (BUY, TP: RM6.38), EG Industries (BUY, TP: RM2.80), MSC (BUY, TP: RM3.06), MITRA (BUY, TP: RM1.27) and ISF (BUY, TP: RM0.62).

Economic Update
Tue, 21 Jul 2026 07:18 am
Malaysia External Trade - Strong exports, but moderation ahead  

• Exports grew +45.4% YoY in June (May: +44.7%), while imports accelerated to +43.9% (May: +14.4%). Consequently, the trade surplus narrowed to RM14.9bn (May: RM39.9bn).
• Manufacturing (+47.3% YoY; May: +51.6%) continued to anchor export growth, while mining (+97.5%; May: +36.4%) provided additional support.
• We maintain our 2026 export growth forecast of +16.3% YoY following last month’s upward revision.     
• We remain particularly positive on the E&E sector, although headline export growth could moderate in 2H26 as frontloaded demand and base effects gradually unwind.

Economic Update
Mon, 20 Jul 2026 12:23 am
Malaysia 2Q26 Advance GDP Estimate - Positive surprise defies geopolitical concerns    

• Malaysia’s economy expanded +5.8% YoY in 2Q26 (1Q26: +5.4%), exceeding consensus of +5.2%, driven by mining and manufacturing.
• Going forward, manufacturing will be underpinned by sustained demand for E&E products, while services should remain supported by resilient domestic demand.
• Nevertheless, we expect growth to moderate in 2H26, with sectoral performance likely to remain uneven as the lagged impacts of supply disruptions become more evident.
• We revise our 2026 GDP growth forecast upward to +5.0% (previously +4.7%), the upper end of BNM’s 4.0%-5.0% projection range.
• For 2027, we project preliminary GDP growth of +4.5%, reflecting more moderate macroeconomic conditions.

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SGD 3.158249 3.180595
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