Opening Daily Highlight
Mixed
Awaiting for Recovery
Tue, 27-May-2025 06:24 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI closed nearly flat at 1,534.30, down 1.1 points (-0.1%), pressured by selling in telecommunication heavyweights. Among heavyweight stocks, Maybank, Public Bank, IHH Healthcare, and CIMB posted modest gains, while Tenaga remained unchanged. Sector-wise, financial services rose 0.4%, plantation edged up 0.1%, whereas energy and technology declined by 0.7% and 1.3% respectively.

 

Global Markets Review:  Wall Street was closed Monday due to Memorial Day. European STOXX 600 rose 1% after President Trump delayed a 50% tariff on EU imports until 9 Jul 2025, following talks with the European Commission President. Asian markets were mixed Monday amid renewed US tariff concerns.  Japan’s Nikkei index rose 1% on optimism ahead of forthcoming trade negotiations in Washington, with chief negotiator Ryosei Akazawa preparing for a third round of talks. South Korea’s Kospi jumped 2% to its highest since late Feb 2025, driven by gains in tech and battery stocks. Hong Kong’s Hang Seng fell 1.4%, hit by electric vehicle stocks after BYD cut prices on 22 models, raising worries about margin pressure from a price war.

 

Market Outlook: We expect the benchmark index to consolidate and absorb the mixed impact from the delayed 50% tariff on European Union imports, as the key index looks to defend the psychological 1,530–1,540 level. Foreign funds are likely to remain net sellers in the local market due to the absence of clear catalysts to spur a recovery. Nevertheless, the upcoming local corporate earnings season may provide fresh momentum to the market. Meanwhile, investors will focus onto Malaysia PPI data to be release later today as well as US FOMC minutes to pinpoint further guidance over the US interest rate direction.

 

Sector focus. Investors are advised to remain selective, focusing on sectors with strong fundamentals such as financials, consumer staples, and utilities.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a bearish candle to edge marginally lower after recouping most of its intraday losses. Indicators remained negative with the MACD Line lingered below the Signal Line, while the RSI hovered below 50. An extended consolidation may take place. Technically, the immediate resistance is located at 1,550, followed by 1,600. Support is envisaged around 1,500.

 

Company News (source: various)

Malayan Banking Berhad net profit rose 4% to RM2.59bn in 1QFY2025, driven by higher income from interest and insurance despite a 27% fall in non-interest income. No dividend was announced.

 

AMMB Holdings Berhad reported a record net profit of RM2bn for FY2025, up 7% yoy. Net interest income increased by 8% and non-interest income by 1.3%. The group declared a final dividend of 19.9 sen per share, bringing total dividends for FY2025 to 30.2 sen, with a payout exceeding RM1 bn.

 

Petronas Gas Berhad expects a total RM170m financial impact from an April 1 gas pipeline fire, with RM60m affecting FY2025 profits. Despite this, 1QFY2025 net profit rose 2.6% to RM468.8m due to higher joint venture profits. A first interim dividend of 16 sen per share was declared.

 

Hong Leong Industries Berhad posted a stable net profit of RM98.88m in 3QFY2025, despite a RM28m sales tax provision. Quarterly revenue rose 18% yoy. The company declared a second interim dividend of 55 sen per share, totaling 80 sen for the financial year.

 

Hume Cement Industries Berhad saw 3QFY2025 net profit drop 33.4% to RM40.64m, mainly due to lower cement sales volume and one-off strategic review costs. The company declared a second interim dividend of six sen per share, with total dividends of 10 sen for the YTD.

 

Malaysia Smelting Corporation Berhad net profit plunged 58% to RM7.72 m in 1QFY2025, impacted by a RM14.1 m additional tax bill on its mining unit. No dividend was announced.

 

Federal Land Development Authority (Felda) launched a new RM1.30 per share bid to privatize FGV Holdings Berhad, controlling nearly 87% of shares. The offer is slightly above FGV’s recent trading price and will remain open for at least 21 days, pending SC approval.

 

Public Bank Berhad lost its appeal in a RM560m lawsuit by National Feedlot Corporation. The apex court ruled the bank must pay damages for breach of confidentiality, allowing the plaintiff to pursue exemplary and aggravated damages.

 

U Mobile Sdn Bhd signed a RM2.4bn, 10-year deal with Telekom Malaysia Berhad to accelerate nationwide 5G rollout, aiming for 80% population coverage by July 2026 using Telekom Malaysia’s extensive fibre network.

 

Samaiden Group Berhad secured a RM101m contract to build a 27.6MW large-scale solar plant in Kelantan, expected to begin operations by July 24, 2027.

 

PeterLabs Holdings Berhad extended the suspension of its executive director Datuk Loh Saw Foong pending ongoing internal and Malaysian Anti-Corruption Commission investigations.

Sentiment: Negative
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Market Mover
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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