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Market Highlights
Market Outlook
Thu, 02 Jul 2026 07:51 am
Market Outlook - Winners / Losers Of MYR Depreciation

• The FBM KLCI fell 57.96 points, or 3.4% month-on-month, in June 2026 weighed by foreign fund outflows, a stronger U.S. dollar and rising domestic political uncertainty.
• The Ringgit is likely to remain under near-term pressure amid a hawkish U.S. Federal Reserve, weaker regional currency performance and rising domestic political uncertainty ahead of the Johor and Negeri Sembilan state elections.
• A weaker ringgit favours export-oriented sectors, particularly Technology and Gloves, while sectors with significant USD-denominated costs, including Construction, Aviation, Autos and Consumer, are likely to face margin pressure.
• The Johor and Negeri Sembilan state elections will be closely watched as an early indicator of political dynamics ahead of GE16 and could influence investor sentiment toward Malaysian assets.
• Maintain our FBM KLCI year-end target of 1,787, supported by expectations of easing geopolitical risks, resilient domestic fundamentals and the potential start of a new market upcycle.
• Our top picks are Mi Technovation (BUY, TP: RM6.23), EG Industries (BUY, TP: RM2.69), MSC (BUY, TP: RM3.06) and MITRA (BUY, TP: RM1.28).

Economic Update
Mon, 22 Jun 2026 07:35 pm
Malaysia Inflation Rate: Inflation risks contained

• Malaysia’s headline inflation printed +2.0% YoY in May (Apr: +1.9%), marginally below consensus of +2.1%, as higher food prices offset easing transport inflation.
• Core inflation was unchanged at +2.0% YoY, suggesting steady demand conditions.
• We maintain our 2026 inflation forecast at +2.1% YoY, with our full-year Brent assumption of USD85/bbl remaining within reach.
• Given the still-benign inflation outlook, we expect the OPR to remain at 2.75% this year.

Economic Update
Mon, 22 Jun 2026 07:30 pm
Malaysia External Trade: E&E strength lifts trade outlook    

• Exports surged to +45.3% YoY in May (Apr: +37.3%), while imports rose +14.1% (Apr: +20.0%). The trade surplus widened sharply to RM40.4bn (Apr: RM29.2bn).
• Manufacturing (+51.7% YoY; Apr: +40.5%) remained the key driver of export growth, while mining provided additional support.
• We revise our 2026 export growth forecast to +16.3% YoY (previously: +8.1%), reflecting robust year-to-date growth of +24.3% and stronger-than-expected E&E prospects.
• We expect export growth to moderate in 2H26 as frontloaded demand gradually fades. Other risks include US trade policy uncertainty and the fragile US-Iran agreement.

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