Market Review & Outlook
Malaysia Market Review: The FBM KLCI (-2.32%) tumbled for the fifth consecutive session as broad-based selling pressure intensified, particularly in the Financial sector. Lower liners also closed lower, although their decline was less severe compared to the KLCI index. The Transportation sector (+0.14%) was the only bright spot, while the Construction (-4.23%) and Financial (-3.03%) sectors led the losses amid strong selling activity.
Global Markets Review: Wall Street rebounded, led by tech stocks, after a slower-than-expected inflation reading eased concerns that the Federal Reserve would slow its interest rate cut trajectory. European markets also recovered despite trade tensions escalating, as the EU announced retaliatory tariffs on a range of US imports. However, sentiment was supported by Ukraine's agreement to a 30-day ceasefire. Meanwhile, Asian markets closed mixed, with investors weighing ongoing tariff uncertainties and lingering recession fears in the US.
Market Outlook: The local benchmark suffered a steep selloff, breaching the 1,500 psychological level, amid persistent foreign fund outflows and subdued institutional support due to tariff related concerns. However, we expect sentiment to improve today, with the local bourse likely to take a breather after several days of heavy declines, supported by Wall Street’s overnight rebound. While bargain hunting activities may emerge, we reckon gains may be tepid amid the absence of fresh leads, while uncertainties prevail. On the global front, investors will closely monitor US PPI data and jobless claims to gauge economic conditions and gain clearer indications of the Federal Reserve’s next policy move.
Sector focus. Given the sharp correction in the Financial sector, we advise investors to selectively buy on weakness, particularly in fundamentally strong banking stocks. However, under the current uncertain environment, we remain cautious and continue to favour resilient blue-chip names in the Financial, Telecommunications, and Consumer sectors. Meanwhile, the Transportation sector is expected to stay resilient as the market anticipates a potential port tariff hike announcement by the government.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI suffered another round of steep sell down as the key index breaches below the 1,500 psychological level. Indicators remained negative with the MACD Line lingered below the Signal Line, while the RSI remained in the oversold territory. Immediate resistance is located at 1,570. Support is envisaged around 1,500.
Company News (source: various)
Capital A Bhd is reigniting its plans to list its brand management arm, Abc International, in the US, with its valuation reportedly doubling from the initial US$1.15 billion (RM5.09 billion), according to chief executive officer Tan Sri Tony Fernandes.
MN Holdings Bhd has secured a RM168.9 million contract to design and construct a high-voltage substation in southern Peninsular Malaysia, bringing its total order book to RM892.4 million.
Critical Holdings Bhd said it has secured two engineering contracts worth a total of RM84.71 million.
MCE Holdings Bhd has won a RM22.13 million contract to supply mechatronics components to US-based automotive supplier JVIS USA LLC for a car model in the US market.
Perdana Petroleum Bhd said it has secured a work order from Sarawak Shell Bhd for the charter of two accommodation work barges for an undisclosed sum.
IJM Corp Bhd said on Wednesday it has secured a 143-year leasehold interest in 25 Finsbury Circus — formerly known as 1-5 London Wall Buildings — for £72.5 million (RM407.9 million) from private equity firm TPG Angelo Gordon.
Pecca Group Bhd said it is acquiring land measuring 25,350 sq m in Bandar Serendah, Rawang, to support its expansion plans.
Scientex Bhd, which reported a 12.1% drop in net profit for the second quarter ended Jan 31, 2025, said its major shareholder Lim Peng Cheong will replace Tan Sri Mohd Sheriff Mohd Kassim, who is retiring, as non-executive chairman of the company.
Bermaz Auto Bhd which assembles Mazda-branded vehicles, flagged tough times ahead after its quarterly profits slumped to a three-year low as Chinese rivals ate into its market share.
KNM Group Bhd said it has obtained a court-convened creditors meeting order (CO), paving the way for discussions on a proposed scheme of arrangement aimed at steering the financially troubled company towards recovery.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.416959 | 4.453511 |
EUR | 4.831305 | 4.839524 |
CNY | 0.612268 | 0.613147 |
HKD | 0.568641 | 0.572854 |
SGD | 3.314348 | 3.339042 |