Market Review & Outlook
Malaysia Market Review: The FBM KLCI declined 0.45% yesterday, as investors traded cautiously amid ongoing market uncertainties and profit-taking in the banking sector, mirroring regional market weakness. However, lower liners ended higher, supported by positive sentiment surrounding the potential lifting of AI chip export restrictions. The Technology sector (+2.18%) led the gains on this news, while the Plantation sector (-1.43%) was the largest decliner.
Global Markets Review: Wall Street closed higher, buoyed by optimism over the US-UK trade deal, which marked the first major agreement following the reciprocal tariff chaos and raised hopes for a wave of new trade deals. European markets closed marginally higher, while Asian markets ended mixed, reflecting regional variances in market sentiment.
Market Outlook: Local market is expected to benefit from the positive spillover from Wall Street, following the US-UK trade agreement, which could dial down global trade tensions. Additionally, the FBM KLCI may find support from banking counters, following BNM’s announcement of a 1% cut in the statutory reserve requirement (SRR), potentially boosting liquidity and supporting lending activity. Meanwhile, lower liners are likely to continue trading positively, riding on the potential lifting of the AI diffusion framework, which could reignite interest in local data center developments.
Sector focus. We expect the Banking, Property, Consumer, and Construction sectors to gain buying interest, supported by the SRR cut, which is expected to enhance market liquidity and stimulate lending activities. Meanwhile, the Technology sector is likely to extend its gains, benefiting from a positive Nasdaq close overnight and easing MYR strength. The Energy sector may also see some recovery, driven by a rebound in international oil prices.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a bearish candle to reverse part of its previous session surge. Indicators, however, remained positive with the MACD Line hovered above the Signal Line, while the RSI steadied above 50. Resumption of recovery remains largely on track upon a breakthrough above 1,550. Technically, the immediate resistance is located at 1,570. Support is envisaged around 1,520.
Company News (source: various)
Public Bank Bhd, Malaysia’s third largest bank by assets, is planning to distribute 60% of its net profit as dividend this year, compared with 57% in 2024.
Pentamaster Corp Bhd’s net profit slipped by one-third to RM13.07 million for the first quarter ended March 31, 2025 (1QFY2025), from RM19.37 million a year ago, on lower revenue and changes in sales mix.
Pavilion Real Estate Investment Trust (Pavilion REIT) reported a 5% rise in net property income (NPI) to RM142.75 million for the 1QFY2025
Berjaya Food Bhd’s net loss widened to RM37.19 million for the third quarter ended March 31, 2025 (3QFY2025) – marking its sixth straight quarterly loss – compared to RM29.76 million a year earlier, mainly due to weaker performance from its Kenny Rogers Roasters (KRR) operations.
Green Packet Bhd has proposed a share capital reduction to offset RM340 million in accumulated losses.
HHRG Bhd’s CEO Fong Chee Khuen has been dismissed from his position with immediate effect for serious misconduct and abuse of authority.
Kerjaya Prospek Group Bhd has secured a RM162 million building contract from Majestic Gen Sdn Bhd for a project in Johor Bahru.
Genting Malaysia Bhd’s proposed US$41 million (RM175.5 million) acquisition to gain full control of the loss-making Empire Resorts Inc from Genting group's founding Lim family has come under the scrutiny of Bursa Malaysia Securities Bhd.
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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 |