Market Review & Outlook
Malaysia Market Review: The FBM KLCI fell 1.0% on Monday, mirroring the lacklustre performance across Asia, as weak Chinese economic data and the recent downgrade of the US sovereign credit rating weighed on regional market sentiment. The lower liners also closed lower, in line with the broader market. Except for the defensive-natured REIT sector (+0.04%), all other sectors ended in the red, with the Technology (-4.2%) and Energy (-3.0%) sectors leading the decline.
Global Markets Review: Wall Street clawed back earlier losses to close in the green as investors shrugged off the US credit downgrade by Moody’s. All three major indices posted modest gains on Monday. Meanwhile, the European markets ended flat, with declines from the US credit rating downgrade largely offset by upbeat corporate updates. The pan-European Stoxx 600 index pared earlier losses to close 0.1% higher. In contrast, Asian markets ended lower, pressured by weaker-than-expected China April retail sales data and lingering concerns from the Moody’s US credit downgrade. Hong Kong’s Hang Seng Index slipped 0.1%, Japan’s Nikkei 225 declined 0.7%, while South Korea’s Kospi dropped 0.9%.
Market Outlook: With optimism from the temporary tariff cuts between the world’s two largest economy starting to fade, the local bourse has entered a consolidation phase in recent sessions. Despite rising concerns over long-term fiscal sustainability and the looming US debt time-bomb, we expect some bargain hunting activities to emerge, in line with overnight recoveries in major global markets. Investors will now shift their attention to the upcoming local corporate earnings season, which could offer fresh catalyst. We see more trade deals from the US as key to keeping the stock market comeback going.
Sector focus. The Technology sector may attract renewed investor interest following three consecutive days of selloff, tracking the overnight recovery in the Nasdaq.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI retreated for the third straight session as the key index drift further away from the SMA200 level. Indicators, however, remained positive with the MACD Line hovered above the Signal Line, while the RSI steadied above 50. A potential consolidation may take precedence over the interim. Technically, the immediate resistance is located at 1,600. Support is envisaged around 1,530.
Company News (source: various)
Bursa Malaysia Bhd said the affected securities and proceeds from unauthorised trades on April 24 will be “released” following post-trade action on Tuesday (May 20).
Affin Bank Bhd reported a 12.6% jump in net profit for the first quarter ended March 31, 2025, on higher net income of RM39.4 million and share of results from its associates of RM21 million.
Johor Plantations Group Bhd reported a 52% year-on-year (y-o-y) jump in net profit for the first quarter, driven by stronger crude palm oil (CPO) and palm kernel (PK) prices.
Ranhill Utilities Bhd has posted a 61% quarter-on-quarter (q-o-q) fall in net profit for its latest quarter due to a project cost overrun.
Taliworks Corp Bhd reported a 30% y-o-y decline in its net profit for the three months ended March 31, 2025 (1QFY2025) at RM10.51 million versus RM15.03 million in the same quarter last year. It booked lower share of profits from its joint venture, Grand Sepadu (NK) Sdn Bhd, and a higher share of losses from its associate, SWM Environment Holdings Sdn Bhd.
Engineering precision parts maker CPE Technology Bhd posted a 71.2% y-o-y rise in net profit for the third quarter, underpinned by higher demand from the semiconductor industry.
Kinergy Advancement Bhd’s unincorporated joint venture with Sinohydro Corporation (M) Sdn Bhd has secured a RM646.3 million engineering, procurement, construction and commissioning (EPCC) contract to build a 120 megawatt (MW) power plant facility in Labuan.
TCS Group Holdings Bhd’s unit TCS Construction Sdn Bhd has secured a RM216.9 million contract from Bandar Raya Developments Bhd (BRDB) to undertake the construction of two 48-storey serviced apartment blocks in Subang Jaya.
MCE Holdings Bhd has formalised a 51:49 joint venture (JV) with Nanjing Chuhang Technology Co Ltd (NCT), a Chinese firm producing millimetre wave radars.
PeterLabs Holdings Bhd said the Malaysian Anti-Corruption Commission (MACC) conducted a raid at its principal offices and its subsidiary Thye On Tong Trading Sdn Bhd (TOT) on Monday, after the company lodged a report to MACC on May 9 over alleged misconduct involving its executive director Datuk Loh Saw Foong.
Sarawak Cable Bhd has denied a claim that its major shareholder, Datuk Seri Mahmud Abu Bekir Taib, was unaware of the board’s decision to sue the appointed liquidators of its subsidiary, Leader Cable Industry Bhd (LCIB), for alleged negligence in handling the sale of assets
Chengco PLT has resigned as Euro Holdings Bhd's auditor with immediate effect due to the suspension of the audit firm's registration by the Audit Oversight Board (AOB) of the Securities Commission Malaysia (SC).
VSTECS Bhd, via its unit VSTECS Pericomp Sdn Bhd, has signed a memorandum of collaboration with Skyvast Data Sdn Bhd to jointly distribute and commercialise artificial intelligence (AI) chip solutions in Malaysia.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.212042 | 4.248408 |
EUR | 4.921000 | 4.929487 |
CNY | 0.591903 | 0.592919 |
HKD | 0.540309 | 0.544492 |
SGD | 3.268153 | 3.293573 |