Market Review & Outlook
Malaysia Market Review: FBM KLCI ended the day up 0.4% at 1,519.8 pts, on renewed optimism across regional markets following the announcement of a ceasefire between Israel and Iran. Overall, market sentiment improved as easing geopolitical tensions contributed to a more stable global environment. Sector-wise, the industrial products and services, plantation, and energy indices posted modest gains, while the financial services sector slipped slightly.
Global Markets Review: US stocks ended mixed on Wednesday as investors monitored the fragile ceasefire between Israel and Iran, with optimism about reduced Middle East tensions helping the Nasdaq and tech stocks edge higher, while the S&P 500 finished flat and the Dow slipped. In contrast, European markets closed higher as the ceasefire appeared to be holding. Asian markets were broadly positive. Shanghai (+1.0%) and Hang Seng (+1.2%) rallied on reduced geopolitical risks and rising hopes for US monetary easing, with brokerages and defense stocks leading the gains. Nikkei advanced 0.4%, while South Korea’s KOSPI rose 0.2%, supported by individual investors who helped offset continued foreign selling.
Market Outlook: Market sentiment has improved in recent days as evidenced by improved trading volumes, which indicate a return of broader market participation. This positive shift follows Iran’s restrained response to United States strikes and the announcement of a ceasefire, both of which have contributed to easing geopolitical tensions. Consequently, we expect extended bargain hunting to continue dominating local sentiment. Nevertheless, in the absence of fresh catalysts, we maintain a cautiously constructive outlook and anticipate that volatility will remain a defining feature of the market in the coming months. Economic wise, investors will be monitoring Malaysia PPI as well as final reading of US Q1 2025 GDP data later tonight.
Sector focus. With market sentiment turning more favourable, he Utilities and Construction sectors appear well positioned to attract sustained interest from bargain hunters as global sentiment becomes more positive. Commodities-related such as oil & gas and plantation sectors may continue to attract profit taking following the pullback in their respective commodity prices.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI edged higher overnight after a choppy trading session only to close at the EMA20 level. Indicators turned mixed as MACD Line hovered below the Signal Line, while the RSI hooked above 50. Immediate resistance is located at 1,530, followed by 1,550. Support is envisaged around 1,500.
Company News (source: various)
UEM Sunrise Bhd has dropped plans for a data centre at Gerbang Nusajaya and is now looking to sell the 74-acre land after the joint venture with Logos collapsed due to changes in Logos’ ownership.
Sports Toto Bhd is acquiring three commercial units at Berjaya Times Square for RM24.9m in a related-party transaction with Berjaya Assets.
AEON Credit Service (M) Bhd expects its return on equity to fall to 12.0–13.0% in FY2026, mainly due to increasing losses at its digital bank venture.
RHB Bank Bhd has appointed Vashta Mahendran as the new group COO, effective July 1, following the departure of David Chong.
Sapura Energy Bhd saw Datuk Shahriman Shamsuddin resign from the board as a non-independent, non-executive director, citing other commitments.
Prolintas (Projek Lintasan Kota Holdings Sdn Bhd) executive Rostam Shahrif Tami was fined RM100,000 for failing to report a bribe related to the SUKE project.
Gas Malaysia Bhd signed an MoU with UK-based Levidian to explore deploying LOOP technology in Malaysia for methane-to-hydrogen conversion and carbon capture.
Citaglobal Bhd is exploring renewable energy projects in Kyrgyzstan after signing an MoU with the country’s energy ministry.
SNS Network Technology Bhd posted a 174.0% jump in first-quarter profit to RM10.2m, driven by record ICT sales, and declared a 0.25 sen dividend.
Cypark Resources Bhd has withdrawn its RM61.3m arbitration claim against the government after reaching an amicable settlement.
Green Ocean Corporation Bhd was queried by Bursa Malaysia after its shares plunged to a record low on surging trading volume.
Destini Bhd secured two sub-contracts to overhaul MRT1 HVAC and brake systems, with the work running from June 2025 to January 2027.
Disclaimer
The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.
Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.
Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.219747 | 4.253423 |
EUR | 4.911876 | 4.916990 |
CNY | 0.590266 | 0.590912 |
HKD | 0.537648 | 0.541618 |
SGD | 3.296584 | 3.319916 |