Malaysia Market Review: FBM KLCI (+0.3%) staged a rebound overnight supported by the positive April unemployment data, which fell to 3.0%. This represents the lowest level in a decade and marks a continuation of the downtrend observed since 2022. Similarly, the lower liners also advanced, while the Construction sector (+1.5%) emerged as the top gainer, driven by renewed interest from bargain hunters following recent profit-taking.
Global Markets Review: Wall Street retreated from earlier gains despite inflation data came lower-than-expected. Over in Europe, major indices also ended in negative territory, with sentiment remaining subdued amid a lack of concrete updates from ongoing trade negotiations. Meanwhile, Asia-Pacific markets advanced stem from growing optimism following signs of easing tensions between the US and China.
Market Outlook: We observed buying interest from local institutional investors remained strong, likely positioning ahead of potential upside, particularly after yesterday’s broad-based pullback. Nevertheless, we continue to urge a degree of caution, as upside momentum may be constrained in the absence of fresh catalyst. In US, inflation data came in softer than expected, with the CPI rising by just +0.1% mom, bringing the annual rate to 2.4%. Despite this moderation, we believe it is still too early to rule out inflationary pressures stemming from tariffs, as such effects may take time to feed through into consumer prices. Economic wise, investors will be closely monitoring on UK manufacturing and production data as well as US PPI, for further cues on the global economic outlook.
Sector focus. We expect trading interest to flow towards oil & gas stocks with Brent oil prices inch closer to the US$70 per barrel threshold amid escalating geopolitical tensions between the US and Iran. Meanwhile, following the recent sharp rally in the construction sector, we anticipate some profit-taking could emerge in the near term.
Technical Commentary: The FBM KLCI remained downbeat despite its attempt to recover throughout the intraday session but remained above SMA50 line. Indicators remained negative as MACD Line hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,550, followed by 1,600. Support is envisaged around 1,500.
Company News (source: various)
HSS Engineers Bhd has clarified that it was not involved in the drawdown of funds from the RM1.3 billion sukuk for the Maju Expressway Extension (MEX II) project, currently under MACC investigation.
Sarawak Consolidated Industries Bhd has appointed Datuk Chong Loong Men as its new executive chairman, effective immediately, replacing Datuk Seri Zaini Jass, who stepped down citing personal reasons and other commitments.
Property developer Bertam Alliance Bhd is set to exit Bursa Malaysia's Practice Note 17 (PN17) category for financially distressed companies on Thursday (June 12), after being classified under the status for seven years.
VS Industry Bhd’s net profit for the third quarter ended April 30, 2025 (3QFY2025) fell 56.33% year-on-year to RM23.77 million, from RM54.42 million, due to weaker sales orders from customers.
Kim Teck Cheong Consolidated Bhd is acquiring 15.15 acres of land in Kota Kinabalu for RM39.59 million from Sabah state-owned KKIP Sdn Bhd to develop a regional distribution and warehouse hub.
Tower Real Estate Investment Trust announced that Martin Kung Boon Keat, CEO of its REIT manager GLM REIT Management Sdn Bhd, will step down on June 12, 2025, to pursue other career opportunities.
Mudajaya Group Bhd said its unit, Mudajaya Corporation Bhd, has reached a mutual settlement with THB Power Sdn Bhd, which has acknowledged owing RM52.67 million.
Vizione Holdings Bhd has announced the mutual termination of a RM490 million contract to build apartments in Sabah, originally awarded by Permaju Industries Bhd in December 2023.
Binastra Corporation Bhd has secured a RM268 million contract to build a 45-storey serviced apartment block with 1,269 units for Tuan Heritag3 in Segambut.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.210973 | 4.249411 |
EUR | 4.954495 | 4.965490 |
CNY | 0.589445 | 0.590817 |
HKD | 0.536642 | 0.541158 |
SGD | 3.306006 | 3.333319 |