Market Review & Outlook
Malaysia Market Review: The FBM KLCI ended higher for a third consecutive session, rising 0.3% on Monday, tracking overnight gains on Wall Street last Friday amid encouraging US-China trade developments. Meanwhile, lower liners closed mixed. Sector-wise, the Construction (+2.0%), Industrial Products & Services (+1.2%) and Telecommunications & Media (+0.9%) sectors led the gainers, while the Financial Services (-0.5%) sector was the main laggard.
Global Markets Review: Wall Street extended its gains on Monday, with the S&P 500 and Nasdaq notching fresh record highs again. This rally was driven by optimism of trade deals as Canada rescinded its digital services tax targeting US technology firms, which paved way for the resumption of negotiations ahead of the July 21 deadline. In contrast, European stock market closed June lower as investors monitor signs of any progress on US trade talks, as the July 9 tariff deadline loomed. Meanwhile, Asian markets traded mixed on Monday. Japan’s Nikkei 225 gained 0.8%, while Korea’s Kospi index closed 0.5% higher. At China, Shanghai Composite closed 0.8% higher while Hang Seng fell 0.9%.
Market Outlook: Market sentiment has improved in recent days, as reflected by increased trading volumes and broader market participation as well as signs on return of foreign funds. This upturn follows a de-escalation of tensions in the Middle East and the optimism from US-China trade truce. 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 the Utilities and Construction sectors to remain attractive. In light of global trade uncertainties, we favour domestically-focused blue-chip stocks.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI has formed a doji to inch marginally higher as the key index is approaching the SMA200 level. Indicators turned positive with the MACD Line hovered above the Signal Line, while the RSI floats above 50. Immediate resistance is located at 1,550, followed by 1,570. Support is envisaged around 1,500.
Company News (source: various)
Sapura Energy Bhd has received approval from Bursa Malaysia for its proposed regularisation plan, paving the way for the financially troubled oil and gas contractor to exit Practice Note 17 (PN17) status.
Genting Malaysia Bhd announced that a formal bid has been submitted for a casino licence in New York as part of a US$5.5 billion (RM23.19 billion) resort development in Queens.
Yinson Holdings Bhd said it would hold off major investments to focus on delivering income and until it sees cash flow from current projects, after reporting another weaker quarter.
Gamuda Bhd announced on Monday that it has won a contract to build a wharf and connecting roads for the Kaohsiung Port Intercontinental LNG Terminal project in Taiwan, valued at RM3.72 billion.
Theta Edge Bhd has secured a contract worth RM87.87 million for the construction of fibre optic infrastructure along Petronas Gas Bhd’s pipeline right of way in Terengganu.
LFE Corp Bhd has secured four contracts worth a combined RM70.85 million, covering construction and material supply works across two development projects in Selangor.
Ni Hsin Group Bhd on Monday signed a heads of agreement (HOA) with the intention to acquire Hy-Fresh Group, one of Malaysia’s largest fully integrated halal-certified poultry businesses.
HHRG Bhd's unit has lodged a police report against the group’s former chief executive officer Fong Chee Khuen following the discovery of alleged financial misconduct and unauthorised money-lending transactions dating back to March 2024.
Shin Yang Group Bhd has proposed the acquisition of 1.95 hectares of leasehold land together with a warehouse building in Kuching to support its expansion in logistics services.
Offshore support vessel player Marine & General Bhd’s fourth quarter net profit eased 2.81% to RM17.61 million following the recognition of deferred tax assets totalling RM17.9 million by the upstream division.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.193617 | 4.226843 |
EUR | 4.931370 | 4.936383 |
CNY | 0.587414 | 0.588020 |
HKD | 0.534368 | 0.538127 |
SGD | 3.290056 | 3.313259 |