Market Review & Outlook
Malaysia Market Review: The FBM KLCI (+1.6%) recorded sharp gains on Wednesday underpinned by persistent foreign fund inflows that lifted more than two-thirds of the key index components. The lower liners also advanced, while the Construction sector (+2.2%) outperformed the sectorial peers.
Global Markets Review: Wall Street climbed as strong earnings from Meta and Microsoft reignited investor interest in the tech sector. Most European and Asian markets were closed on Wednesday for the Labour Day holiday. However, markets in the UK, Japan, and Australia advanced, following overnight volatility on Wall Street.
Market Outlook: It was a bullish performance by the benchmark index after breaking the near-term resistance of 1,530. Despite that, we reckon the local bourse may take a pause amid uncertainty in the global stock markets. Still, the extended inflows of foreign funds are likely to provide support to the local stock market. We also reckon lower liners will likely track the broader market's movement. We hold our view that the tensions between the US and China have peaked, and both parties are likely to move toward negotiations soon. This could lead to a recovery in global trade volumes, benefiting ports and logistics operators involved in transshipment between China, the US, and ASEAN markets. Key economic focus will be directed towards EU and US unemployment rate as well as US non-farm payroll to be release today.
Sector focus. We opined that the technology sector may stage a recovery, tracking the strength seen on the Nasdaq overnight. We are also positive on the construction sector, which remains relatively insulated from the impact of the US-Malaysia tariff.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI charged sharply higher the key index advanced above the SMA50 level. Indicators remained positive with the MACD Line hovered above the Signal Line, while the RSI steadied above 50. The recovery trend remains intact as the key index looks to build onto recent gains. Technically, the immediate resistance is located at 1,550. Support is envisaged around 1,500.
Company News (source: various)
Malayan Banking Bhd has appointed Shafiq Abdul Jabbar as group chief financial officer (CFO), effective July 7, 2025.
Eco World International Bhd (EWI), which was established in 2013 to focus on overseas property development, is planning to expand its geographical footprint to Malaysia, amid headwinds it faced in the UK and Australia since the onset of the Covid-19 pandemic.
LPI Capital Bhd’s net profit slipped 3.3% in the first quarter from a year earlier as higher net expenses from reinsurance contracts offset a rise in revenue.
Integrated logistics solutions provider Tasco Bhd posted a net loss of RM3.19 million for the fourth quarter ended March 31, 2025 (4QFY2025), dragged down by a one-off expense arising from a write-off of a warehouse facility.
Property developer HCK Capital Group Bhd said it has lodged the necessary documents with the Securities Commission Malaysia (SC) to establish a sukuk wakalah programme of up to RM2 billion in value.
Vizione Holdings Bhd said that a RM750 million construction contract awarded by a related party has been terminated, effective immediately.
KNM Group Bhd’s audited financial statement for the financial year ended Dec 31, 2024 (FY2024) has been flagged with material uncertainties by its external auditor, casting doubt over the Practice Note 17 (PN17) company’s ability to continue as a going concern.
WTK Holdings Bhd is selling its loss-making Sarawak unit Song Logging Company Sdn Bhd, which holds a logging contract for a 114,804-hectare forest area in Kapit, Sarawak, to Huang Qian Wen for RM23.5 million.
Compugates Holdings Bhd’s fourth largest shareholder, Datuk Koh Lean Poh, has sold a 9.92% stake in the IT product trading and services provider for RM8.4 million.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.214000 | 4.246402 |
EUR | 4.933065 | 4.941517 |
CNY | 0.592554 | 0.593580 |
HKD | 0.540322 | 0.544498 |
SGD | 3.273088 | 3.298512 |