Opening Daily Highlight
Mixed
Market Sentiment Strengthens on Trade Truce
Mon, 30-Jun-2025 06:31 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI ended the shortened trading week on a positive note, rising 0.6% on last Thursday amid continued bargain hunting and improved sentiment following easing geopolitical tensions in the Middle East. Lower liners also closed higher in line with the broader market. Sector-wise, the Technology (+1.6%), Utilities (+1.4%) and Plantation (+1.4%) sectors led the gainers, while the Healthcare (-0.5%) and Real Estate Investment Trusts (-0.4%) sectors were the main laggards.

 

Global Markets Review: Wall Street extended its gain on last Friday, sending S&P 500 and Nasdaq to new record highs, driven by optimism following the US-China trade agreement and expectations of earlier rate cuts by the US Federal Reserve fuelled by the economic data. Nonetheless, stocks pulled back from their session highs after President Donald Trump announced the termination of trade talks with Canada in response to its digital services tax on technology companies. In Europe, equities also ended higher, buoyed by a rally in automakers, as sentiments improved on signs of improving trade relationships between US and China. Meanwhile, Asian markets traded mixed on Friday. Japan’s Nikkei 225 gained 1.4% as CPI data came in softer than expected. In contrast, despite the trade truce, Shanghai Composite (-0.7%) and Hang Seng (-0.2%) declined on weak May industrial data in China. 

 

Market Outlook: Market sentiment has improved in recent days, as reflected by increased trading volumes and broader market participation. This upturn follows a de-escalation of tensions in the Middle East. With the US-China trade truce announced well ahead of the 90-day tariff postponement deadline on 9 July, we expect bargain hunting and increased risk appetite to persist in the near term. This week, investors focus will turn to a slew of PMI releases and the closely watched US jobs report due on Thursday.

 

Sector focus. Amid rising investor risk appetite, we expect Technology stocks to extend their recovery move, supported by overnight gains in Nasdaq. In contrast, Glove stocks may come under selling pressure as the US-China trade deal lowers tariffs for Chinese glovemakers, eroding the tariff advantage previously enjoyed by Malaysian counterparts.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed another bullish candle as the key index recovered above SMA50 last Thursday. Indicators turned mixed with the 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)

Top Glove Corporation Bhd said its net profit fell 31% in the third quarter from a year earlier as a surge in expenses nearly wiped out revenue growth.

 

Mulpha International Bhd will get A$339.3 million (RM933.7 million) from its 15.2% stake in Australian retirement operator Aveo Group, which it had to sell under a tag-along arrangement.

 

MBSB Bhd group chief executive officer Rafe Haneef said the financial institution aims to grow its loan book to RM50 billion by the financial year ending Dec 31, 2026 (FY2026), up from around RM43 billion in FY2024.

 

Sunway Property, the property arm of Sunway Bhd, through joint-venture subsidiary Sunway Rawang City Sdn Bhd, has entered into a sale and purchase agreement to acquire approximately 99.6 acres of freehold land in Kuang, Selangor, for RM65.1 million. 

 

Kenanga Investment Bank Bhd, acting as the independent adviser for Federal Land Development Authority’s (Felda) RM1.30 a share offer to buy remaining shares in FGV Holdings Bhd, has recommended that shareholders accept the offer.

 

KPJ Healthcare Bhd said the group is undertaking a review of its overseas operations, particularly in Dhaka, Bangladesh, as part of an ongoing portfolio reassessment aimed at maximising shareholder value.

 

Gamuda Bhd recorded a 4.68% year-on-year increase in its third-quarter net profit, driven by robust performance within its domestic construction division, where earnings about tripled, offsetting a drop in the group's property earnings.

 

Eco World Development Group Bhd said it is well on track to exceed its RM3.5 billion sales target for the financial year ending Oct 31, 2025 (FY2025), after posting record-high earnings in its latest quarterly result. 

 

Eco World International Bhd, meanwhile, posted a net profit of RM2.3 million in 2QFY2025, compared to a net loss of RM14.13 million a year ago. The profit was attributed to a lower impairment loss on the amount owed by its Eco World London joint venture, reduced staff costs, higher foreign exchange gains from shareholder advance repayments, and stronger contributions from its EcoWorld-Ballymore JV. 

 

United Malacca Bhd’s net profit for the fourth quarter ended April 30, 2025 (4QFY2025) rose 57.43% to RM23.74 million from RM15.08 million a year earlier, on the back of higher FFB production, stronger CPO prices and lower unit production costs in Indonesia.

 

Kim Loong Resources Bhd reported a 15.34% drop in its first quarter profit despite higher revenue, as it saw lower processing margins from milling operations, driven by a weaker oil extraction rate.

 

Property firm Crescendo Corp Bhd flagged higher operating costs from the minimum wage adjustments, subsidy rationalisation for fuel and electricity, as well as the expanded scope of the sales and service tax, after posting a steep 97.5% year-on-year decline in its 1QFY2026 net profit.

 

Green Ocean Corp Bhd, whose share price hit a new record low in heavy trading on Thursday, said it is not aware of any corporate development that may have triggered the unusual market activity (UMA). 

 

Destini Bhd announced that its 70%-owned subsidiary has been awarded a RM71 million contract by the Ministry of Transport. The contract is for maintenance, repair, and overhaul (MRO) services for nine electric train sets.

Sentiment: Positive
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