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Tue, 08-Jul-2025 07:06 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review:  KLCI closed lower, slipping 0.82% to 1,537.54 and giving back some of last week’s gains, as regional markets softened ahead of the upcoming US tariff decision on July 9. All sectoral indices ended in the red, reflecting broad-based selling amid renewed global trade tensions and a cautious mood among investors.

 

Global Markets Review: US stocks declined sharply on Monday, with the Dow down 0.9% and the S&P 500 and Nasdaq marking their worst losses since mid-June, after President Trump announced the imposition of reciprocal tariffs across several countries and postponed the tariff deadline to August 1. In contrast, European markets closed higher as investors looked ahead to further developments in US trade talks. Across Asia most stock markets ended the day in negative territory as ongoing uncertainty over US tariff policy continued to weigh on regional sentiment.

 

Market Outlook: Bursa Malaysia is expected to come under renewed pressure, following Wall Street’s decline after President Trump announced a 25% tariff on Malaysian imports. The move is expected to trigger a knee jerk selling pressure particularly across sectors that have larger exposure to the US market and will likely dampen overall market sentiment in the near term. Investors should closely monitor the upcoming BNM Monetary Policy Decision on Wednesday and the release of IPI data on Friday for clearer signals on the market’s direction amid ongoing uncertainty.

 

Sector focus. We continue to favour the REIT, plantation, and financial sectors as defensive plays against renewed market volatility, while export-oriented sectors particularly those with significant exposure to the US market may experience selling pressure amid ongoing trade uncertainties.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI gapped down to snap an eight-day uptrend as the key index pullback closer to 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 1,500.

 

Company News (source: various)

NexG Bhd secured several Home Ministry contract extensions, including a 6-month extension for supplying MyKad and consumables (RM29.68m ceiling), a 14-month extension for maintenance services (RM15.86m), and a 6-month extension for passport supply, with no increase in contract limits.

 

OSK Holdings Bhd is acquiring Wilayah Credit for RM16.5m to expand into motorcycle financing, and will sell three Kuala Lumpur properties back to the seller for RM12.6m as part of the deal.

 

Lotte Chemical Titan Holding Bhd signed a related-party 10-year ethylene supply agreement worth US$3b (RM12.7b) between its Indonesian subsidiaries, with LCTN purchasing 350,000 tonnes annually from LCI.

 

OneTech Solutions Holdings Bhd is facing a winding-up petition filed by former MD Lau King Yew, who alleges unfair treatment and a breakdown of trust with current management.

Sentiment: Negative
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Market Mover
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Currency Buy Rates (RM) Sell Rates (RM)
USD 4.222386 4.255930
EUR 4.971399 4.976456
CNY 0.590426 0.591027
HKD 0.538081 0.541842
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