Market Review & Outlook
Malaysia Market Review: FBM KLCI ended the day up 0.9% at 1,516.61 pts, driven by gains in banking heavyweights and a rally in energy stocks amid higher oil prices. Overall market sentiment remained fragile due to ongoing geopolitical tensions and a hawkish tone from the US Federal Reserve. Sector-wise, the Financial Services sector led with a 0.8% gain, while the Industrial sector was the biggest drag, falling 1.2%.
Global Markets Review: US stocks surged on Monday as investors welcomed Iran’s restrained response to US military strikes, alleviating fears of a broader conflict in the Middle East. Despite heightened tensions over the weekend, European financial markets remained relatively calm, with the Stoxx 600 index provisionally closing 0.3% lower. Asian markets turned cautious on Monday as US strikes on Iranian nuclear sites raised geopolitical concerns and pushed oil prices higher. Hong Kong’s Hang Seng recovered modestly, closing up about 0.7% at 23,689.13 pts, supported by a calmer-than-expected Iran reaction and positive commodity sentiment. Meanwhile, South Korea’s KOSPI and Japan’s Nikkei closed in the red, hampered by vulnerability to rising oil costs and concerns over further Middle East escalation.
Market Outlook: We expect the benchmark index to extend its recovery trend today, supported by improved market sentiment following Iran’s restrained response to US strikes and the announcement of a ceasefire, which has eased geopolitical tensions. However, overall near-term sentiment is likely to remain cautious due to a lack of fresh catalysts. With the key index bouncing off the 1,500 pts, bargain hunting activities may emerge. The lower liners could also be due for a potential recovery as many stocks are lingering near their oversold position. Looking ahead, investor attention may shift to Malaysia’s May inflation data, which is scheduled for release today which is expected to remain stable.
Sector focus. We reckon the Technology sector may mirror the positive performance delivered by Nasdaq overnight. However, sentiment remain cautious with REIT, Utilities and Banking sector may remain in focus.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a bullish engulfing candle after recovering all its intraday losses as the key index defended the 1,500 psychological level. Indicators remained negative as MACD Line hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,530, followed by 1,550. Support is envisaged around 1,500.
Company News (source: various)
AirAsia X Bhd is close to completing its RM1bn private placement, which is part of a broader aviation business restructuring involving the acquisition of AirAsia Aviation Group and AirAsia Bhd. The company is targeting to complete the deal by the end of July.
LBS Bina Group Bhd has launched Centrum Iris, the second phase of its Cameron Centrum township in Cameron Highlands, marking it as the region’s largest mixed commercial development with a gross development value of RM472m, including 705 residential units and 26 commercial units.
Enra Group Bhd, through its subsidiary Hexagon Energy Logistics, has secured a US$32.1m (RM136.6m) contract to provide a storage tanker for oil and gas operations at the Malaysia-Thailand Joint Development Area, with the subcontract running for 12 months starting October 2025.
MyNews Holdings Bhd is confident of reaching its goal of 700 outlets by October 2025, having already grown to 676 outlets, which helped lift its quarterly net profit by 31.6% to RM2.3m and increase revenue to RM202.6m; the group also declared a half-sen interim dividend.
Magni-Tech Industries Bhd reported an 18.1% drop in net profit for the fourth quarter, attributed to lower revenue from its garment and packaging segments, foreign exchange losses, and higher material costs, leading to a quarterly revenue of RM326.4m and a reduced dividend of 3sen/share.
Cuckoo International (MAL) Bhd is set to debut on the Main Market of Bursa Malaysia and has formed a strategic partnership with Samsung Malaysia Electronics to launch smart, AI-driven home solutions aimed at expanding its wellness ecosystem in Malaysia.
Mulpha International Bhd’s Australian subsidiary has obtained a A$73.8m (RM203.8m) cash advance facility from National Australia Bank to support a property development project in Castle Hill, New South Wales.
Willowglen MSC Bhd has secured a RM15.3m contract from Singapore’s SP Power Assets to maintain partial discharge systems over a nearly five-year period, from June 23, 2025, until May 31, 2030.
Yinson Holdings Bhd announced that its FPSO unit, Yinson Bergenia Production BV, is considering issuing up to US$1.2bn (RM5.2bn) in bonds backed by the FPSO Maria Quitéria, which is on long-term charter to Petrobras in Brazil’s Campos Basin, with the debt set to mature in 19.6 years.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.227937 | 4.262450 |
EUR | 4.922725 | 4.933531 |
CNY | 0.591230 | 0.592537 |
HKD | 0.538517 | 0.542927 |
SGD | 3.302940 | 3.330273 |