Opening Daily Highlight
Mixed
Bargain Hunting Awaits
Fri, 30-May-2025 06:26 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: FBM KLCI closed lower at 1,518.98, down 4.50 points (-0.29%), pressured by profit-taking in selected banking heavyweights amid lackluster corporate earnings. Among key stocks, Maybank and CIMB posted modest gains, while Public Bank and Tenaga Nasional declined. Sector-wise, financial services slipped 0.4%, energy gained 0.2%, and industrial products edged up 0.2%.

 

Global Markets Review:  Wall Street closed higher on Thursday, with the Dow up 0.28%, the S&P 500 rising 0.4%, and the Nasdaq gaining 0.39%, driven by strong Nvidia earnings. Gains, however, were capped by renewed uncertainty over Trump’s “reciprocal” tariffs. The European STOXX 600 fell 0.2% on similar tariff concerns. Asian markets rallied, buoyed by a favourable US court decision blocking Trump’s “reciprocal” tariffs. Japan’s Nikkei 225 surged 1.9% on renewed risk appetite, South Korea’s Kospi jumped 1.9% on a rate cut and tech gains, Hong Kong’s Hang Seng rose 1.4%, and China’s CSI 300 added 0.6% as sentiment improved across the region.

 

Market Outlook: We expect the FBM KLCI to take on a more optimistic tone and potentially stage a rebound, as uncertainty eases following the favourable US court decision blocking Trump’s “reciprocal” tariffs. The key index is likely to defend the psychological 1,520–1,530 level, with signs of recovery from foreign funds in the local market. Meanwhile, the ongoing corporate earnings season could provide fresh momentum and offer clearer direction for investors. Following the sluggish second reading of US Q1 2025 GDP data (-0.2% yoy), investors will be keeping a close watch onto US consumer sentiment and Chicago PMI data later tonight.

 

Sector focus. We maintain our positive outlook on the Technology and Power ancillary sectors, both of which are strengthening their recovery momentum as bargain hunting activities take precedence.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed another bearish candle as the key index drifted towards the SMA50 level. Indicators remained negative with the MACD Line lingered below the Signal Line, while the RSI hovered below 50. An extended pullback remains to be seen. Technically, the immediate resistance is located at 1,550, followed by 1,600. Support is envisaged around 1,500.

 

Company News (source: various)

Sunway Construction Group Berhad secured two data centre contracts worth RM1.16bn from a US-based tech firm, boosting its outstanding order book to RM7.9bn.

 

IHH Healthcare Berhad posted a 33% net profit decline to RM514m in 1QFY25 due to accounting adjustments, despite a 5.7% revenue increase to RM6.29bn.

 

KPJ Healthcare Berhad saw a 20% net profit drop to RM57m in 1QFY25, impacted by overseas losses but declared a 0.8 sen dividend.

 

Genting Berhad’s 1QFY25 net profit plunged sharply to RM4.6m from RM589m, dragged by lower revenues and higher taxation.

 

Genting Malaysia Berhad reported a 25.7% net profit rise to RM72.6m, helped by forex gains despite a 6.1% revenue decline.

 

Chin Hin Group Berhad doubled its 1Q net profit to RM18.4m, driven by Signature International and a property segment turnaround.

 

Tropicana Corporation Berhad remained profitable with a RM1.3m net profit in 1QFY25 despite a 10.6% revenue drop.

 

Farm Fresh Berhad recorded record net profit of RM27.7m in 4QFY25, a 15% increase, supported by new products and acquisitions.

 

IJM Corporation Berhad’s 4QFY25 net profit fell nearly 30% to RM129m, impacted by a RM54m credit loss related to West Coast Expressway.

 

Carlsberg Brewery Malaysia Berhad’s 1QFY25 net profit grew 7.5% to RM94.5m due to lower taxes; declared a 23 sen dividend.

 

NationGate Holdings Berhad more than doubled 1Q net profit to RM53.9m, boosted by strong data segment demand and forex gains; declared 0.25 sen dividend.

 

Dagang NeXchange Berhad swung to a net loss of RM79m in 1QFY25 from a RM14.5m profit a year earlier, due to higher interest expenses and weaker revenues.

Sentiment: Negative
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