Market Review & Outlook
Malaysia Market Review. The FBM KLCI (-0.7%) extended its decline, as profit-taking persisted, driven by foreign funds shifting interest to China and Hong Kong markets. Lower liners closed mixed, with the Utilities (+0.7%) and REITs (+0.6%) sectors topped the gainers list, while the Energy (-1.2%) and Construction (-1.1%) sectors were the biggest losers.
Global Markets Review. US stock markets ended positively, with all three major indices closed in the green. The S&P 500 closed at fresh record high, rebounding from intraday lows after the Fed Chairman's speech signaled a dovish tone over monetary policies, indicating the solid progress of the US economy. In contrast, European markets closed lower, while Asian markets saw mixed performances, bucking the positive performance in China and Hong Kong markets.
Market Outlook. Bargain hunting may emerge on the local bourse today, likely reflecting the positive momentum from Wall Street after the Fed Chairman's speech alleviated concerns over the US economy. This could be further supported by reduced fund rotation from foreign investors as China’s financial markets close for a week-long national holiday. Investors will focus on key US economic indicators this week, including the manufacturing PMI, job openings, and nonfarm payrolls data, for further insights into the US economic outlook. Sector-wise, we favor sectors benefiting from the strengthening of the local currency, such as Consumer and Financial sectors. Tourism-related counters may also see buying interest, spurred by an expected increase in tourist arrivals from China during their holiday period. However, caution is advised for export-oriented sectors like Technology, which may face pressure with stronger MYR.
FBM KLCI Technical Review & Outlook
Technical Commentary: The FBM KLCI formed another bearish candle and continues to trade below the middle Bollinger Band yesterday. Indicators remained negative as MACD hovered below the Signal Line, while the RSI ticked below 50. Immediate resistance is located at 1,700. Support is envisaged around 1,635.
Company News
Dagang NeXchange Bhd is partnering with Singapore-based Google Asia Pacific Pte Ltd to provide sovereign cloud services in the country.
TCS Group Holdings Bhd has secured a contract worth RM116.58 million from a subsidiary of S P Setia Bhd, I&P Kota Bayuemas Sdn Bhd.
Samaiden Group Bhd has secured a two-year contract worth RM52 million to build a 14MW LSS PV power plant in Sungai Petani, Kedah.
Critical Holdings Bhd has been awarded an RM82 million contract from a client it quoted as "multinational company headquartered in the US".
Jati Tinggi Group Bhd has secured a sub-contract worth RM50.87 million for 132kV underground single circuit cable installation in Cyberjaya, Selangor.
Kawan Food Bhd is closing its manufacturing facility in China, due to the impact of US tariffs and limited room for expansion.
Cape EMS Bhd said its executive director Lim Chue Wan had resigned due to health reasons.
RHB Bank Bhd has proposed the establishment of a note programme of up to RM10 billion partly to refinance outstanding borrowings.
AME Elite Consortium Bhd is planning to establish a sukuk wakalah programme, with a total value of up to RM1.8 billion.
Yinson Holdings Bhd’s net profit fell 11.74% to RM203 million in 2QFY2025, from RM230 million a year ago, on the back of lower revenue and as finance costs more than doubled.
Astro Malaysia Holdings Bhd posted a net profit of RM54.71 million in 2QFY2025, its best quarterly results since the quarter ended January 2023, on the back of lower expenses, and better finance costs on favourable foreign exchange impact.
Disclaimer
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.375354 | 4.412699 |
EUR | 4.573391 | 4.585347 |
CNY | 0.603938 | 0.605575 |
HKD | 0.561409 | 0.566244 |
SGD | 3.236779 | 3.265133 |