Market Review & Outlook
Malaysia Market Review: The FBM KLCI managed to eke out a modest gain on last Friday, closing up 1,550.19 (+0.1%) as broad-based buying in financial and industrial stocks helped the index recover from Thursday’s slight decline. The rebound was supported by renewed interest in technology counters, as well as strength in industrial products and plantations. Energy stocks underperformed, mirroring global weakness in crude oil prices, while REITs finished the session flat to slightly positive.
Global Markets Review: Wall Street was closed last Friday for Independence Day. European markets slipped on renewed trade worries ahead of President Trump’s July 9 tariff deadline. Meanwhile, ASEAN markets closed mixed amid renewed trade concerns. Japan’s Nikkei edged up slightly by 0.1%, South Korea’s KOSPI tumbled about 1.8%, and China’s Shanghai Composite rose approximately 0.3%. Hong Kong’s Hang Seng underperformed, dipping 0.6% due to persistent investor caution over the region’s economic outlook and ongoing uncertainty surrounding global trade developments.
Market Outlook: Bursa Malaysia is expected to remain sideways to mildly positive, with gains likely capped by ongoing uncertainties ahead of key central bank meetings in the region and the looming US tariff deadline on July 9. While sentiment has improved recently, the market has entered a consolidation phase as investors navigate uncertainty surrounding global trade and monetary policy. Investors are advised to closely monitor the upcoming BNM Monetary Policy Decision on Wednesday, as well as the Industrial Production Index (IPI) data to be released on Friday for further indications of market direction.
Sector focus. In light of improving risk appetite, we reiterate our constructive stance on sectors aligned with national infrastructure development, data centre expansion, green energy, and technology, backed by compelling valuations that continue to support their positive growth outlook.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI inched marginally higher as the key index strengthened its position above the SMA50 level. Indicators remained positive with the MACD Line hovered above the Signal Line, while the RSI floats above 50. Immediate resistance is located at 1,560, followed by 1,580. Support is envisaged around 1,530.
Company News (source: various)
WCT Holdings Bhd has secured a RM365.2m contract to expand the Sedenak-Simpang Renggam section of the North-South Expressway (PLUS) in Johor, with project works commencing on July 28 and a three-year completion timeline.
Mesiniaga Bhd clinched a RM148m contract from Retirement Fund Inc (KWAP) to supply and implement a new pension system, including an optional support package worth RM64.5m running through July 2033.
Kim Hin Industry Bhd is set for privatisation, as its chairman and family offered RM45m, or 85 sen per share, a nearly 85% premium over the last market price to acquire all remaining shares, with shareholders given until July 25 to decide.
Edelteq Holdings Bhd is expanding into the upstream semiconductor segment through a RM20.7m acquisition of a 24% stake in Solid Point Precision Manufacturing Sdn Bhd, marking a move into precision component manufacturing.
Kretam Holdings Bhd appointed Chiong Li Wei, son of its new substantial shareholder Chiong Kiau, as executive director, following Kiau’s emergence as the second-largest shareholder via his private vehicles holding a cumulative 10% stake.
Green Packet Bhd welcomed a new substantial shareholder, European Credit Investment Bank Ltd, which acquired a 5.8% stake (141.1m shares) via open- and off-market transactions, valuing the block at approximately RM5.6m.
Mudajaya Group Bhd plans to raise up to RM26m through a private placement of 265.7m new shares, aiming to reduce its significant bank borrowings, which stood at RM644.5m as of late June.
MN Holdings Bhd secured a RM29.3m contract from Tenaga Nasional Bhd for the extension of new transformer bays at the Tanjung Langsat Industrial Estate, with the project to be completed in 540 days.
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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 |