Market Review & Outlook
Malaysia Market Review: The FBM KLCI extended its two-day losing streak on Thursday, declining 0.9% following PBOC’s unexpected decision to keep its key lending rates unchanged. The benchmark index was dragged lower by sharp declines in IHH, CelcomDigi and Sime Darby. Despite the weakness in large-cap stocks, lower liners remained resilient, bucking the trend. Sector-wise, gains were led by Energy (+1.3%) and Transportation & Logistics (+0.6%), while Financial Services (-1.1%) and REITS (-0.5%) were the top laggards.
Global Markets Review: Wall Street erased earlier gains on Thursday as ongoing uncertainties around the US economy continued to weigh on sentiment. All three indices ended the day in the negative territory. In Europe, markets closed lower as global economic uncertainties overshadowed monetary policy announcements from Bank of England, Swiss National Bank and Sweden’s Riksbank. The pan-European Stoxx 600 dropped 0.4%, snapping a four-day winning streak. Meanwhile, Asian markets traded mixed following rate decisions from the Fed, BOJ and PBOC, all of which kept their lending rates unchanged. South Korea’s Kospi rose 0.3%, while Singapore’s STI was up 0.6%. In contrast, the Shanghai Composite Index slipped 0.5% while the Hang Seng Index plunged 2.2%.
Market Outlook: As tariff concerns and trade tensions persist, we anticipate heightened volatility in the market. The local bourse is expected to consolidate, weighed down by continued foreign fund outflows and global economic uncertainties. That said, we see opportunities for some data centre-related stocks, particularly SCGBHD and UUE, as their share prices have retraced significantly despite strong fundamentals earnings growth prospects. On the macro front, Japan’s inflation data due today will provide insights into BOJ’s interest rate trajectory. Back home, key economic focus lies towards Malaysia inflation data. Looking ahead, next week’s focus will be on US and EU PMI data, alongside US core PCE, the Fed’s preferred inflation gauge.
Sector focus. We continue to favour defensive sectors, such as REITs, Healthcare (excluding gloves) and Utilities, which may provide stability amid market uncertainties. Meanwhile, the Technology sector could see profit taking activities, tracking Nasdaq’s overnight losses.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a bearish engulfing candle after erasing all its intraday gains as the key index approaches the 1,500 psychological level. Indicators remained negative with the MACD Line lingered below the Signal Line, while the RSI hovers below 50. Immediate resistance is located at 1,570. Support is envisaged around 1,500.
Company News (source: various)
Water and wastewater engineering company Salcon Bhd has secured a RM167 million contract for the construction of a new water treatment plant, raw water pipeline and related infrastructure in Melaka.
Scanwolf Corp Bhd has secured a RM42 million contract for sub-structure works on two commercial blocks on Jalan Ampang in a related-party transaction (RPT).
Nasdaq-listed Founder Group Bhd, a subsidiary of Reservoir Link Energy Bhd, has secured a RM11.6 million contract to build a rooftop solar generating facility in Malaysia.
Shareholders of Pharmaniaga Bhd have approved its proposal to raise up to RM653.52 million in cash, which is part of the company’s revised regularisation plan to lift it out of Practice Note 17 status.
IJM Corp Bhd has strongly refuted false and malicious allegations circulating online about the construction company and its leadership.
Property developer Lagenda Properties Bhd is acquiring six parcels of freehold land in Senawang, Negeri Sembilan, measuring 138.17 acres, for RM60.2 million.
Hextar Oiltech Sdn Bhd, a 60%-owned subsidiary of Hextar Global Bhd, has been appointed as an exclusive distributor of Petromin’s premium lubricant in Malaysia.
Top Glove Corporation Bhd, the world’s largest natural rubber glovemaker, remained in the black for a second consecutive quarter, thanks to a surge in sales.
Cahya Mata Sarawak Bhd has initiated legal action against its deputy chairman Datuk Seri Mahmud Abu Bekir Taib over alleged breaches of trust and fiduciary duties in relation to a failed enterprise resource planning (ERP) system under the company’s digital transformation project.
Iskandar Waterfront City Bhd has proposed a regularisation plan involving the issuance of new shares to settle outstanding debts, a private placement and a capital reduction in order to exit its affected listed issuer status.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.410285 | 4.444845 |
EUR | 4.799793 | 4.808841 |
CNY | 0.610343 | 0.611487 |
HKD | 0.567400 | 0.571867 |
SGD | 3.303126 | 3.329197 |