Market Review & Outlook
Malaysia Market Review: The FBM KLCI closed lower, -0.55%, in line with regional markets as ongoing volatility in the Middle East continued to weigh on investor sentiment. Similarly, lower liners also declined amid persistent global uncertainties and recent market volatility. Sector-wise, only three sectors closed in positive territory: Property (+0.5%), Transport (+0.42%), and Construction (+0.1%). The Energy sector (-1.78%) led the losses as profit-taking emerged, while the Healthcare sector declined 1.55%, pressured by the introduction of a 5% SST on raw materials.
Global Markets Review: Wall Street experienced a pullback, with all three major indices closing lower. The sell-off was driven by renewed concerns over the escalating Israel-Iran conflict, which heightened risk aversion among investors. European markets also declined earlier, while Asian markets showed mixed performance, reflecting cautious sentiment amid geopolitical uncertainties and key central bank decisions, as the Bank of Japan’s decision to hold interest rates steady.
Market Outlook: The Malaysian stock market is expected to trade cautiously lower today as investors continue to digest recent declines amid lingering global uncertainties and geopolitical tensions, particularly surrounding the Israel-Iran conflict. Investors will closely monitor key global events, especially the FOMC meeting scheduled for later tonight. While interest rates are widely expected to remain unchanged, market focus will be on the Fed’s forward guidance, particularly any signals regarding future rate cuts in response to softer US inflation and signs of economic cooling. Additionally, the US jobs report later this week may further influence market sentiment.
Sector focus. Commodity-driven sectors such as Energy and Plantation are expected to regain interest following yesterday’s profit-taking, supported by a resurgence in oil prices amid renewed Middle East tensions. Defensive sectors like REITs and banks are likely to attract investor interest amid ongoing volatility. Conversely, sectors sensitive to global uncertainties, such as Technology, may face continued pressure. Meanwhile, the proposed full phase-out of solar and wind energy tax credits by the US government could weigh on the sentiment of local renewable energy-related stocks.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a bearish candle after erasing all its intraday gains yesterday. 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)
Apollo Food Holdings Bhd plans to expand capacity and step up its marketing efforts following record high sales.
UWC Bhd remains optimistic about its business prospects and the industries it operates in, citing signs of recovery after reporting a near-doubling of net profit for the third quarter ended Apr 30, 2025 (3QFY2025).
Jaycorp Bhd has posted its first quarterly loss in more than three years, weighed down by sluggish furniture demand in both domestic and export markets as well as unfavourable foreign exchange rates.
Chin Hin Group Bhd has called off its planned acquisition of data centre-related firms after the target companies failed to secure an order book of at least RM380 million, a key condition for completion.
KPJ Healthcare Bhd has awarded a total of RM31.97 million worth of hospital renovation works to a company linked to its major shareholder Johor Corporation (JCorp).
Malaysia Marine and Heavy Engineering Holdings Bhd has secured a final legal victory in its long-standing dispute with Kebabangan Petroleum Operating Company Sdn Bhd (KPOC) after the Federal Court dismissed KPOC’s application for leave to appeal against an earlier Court of Appeal decision.
Yinson Holdings Bhd has closed the first tranche of US$300 million (RM1.27 billion) from US$1 billion committed by a consortium of international investors.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.202455 | 4.235870 |
EUR | 4.966683 | 4.971697 |
CNY | 0.588701 | 0.589303 |
HKD | 0.535549 | 0.539297 |
SGD | 3.300764 | 3.324077 |