Market Review & Outlook
Malaysia Market Review: KLCI ended lower for a second straight session yesterday, bucking the regional uptrend as investor sentiment remained cautious amid renewed concerns over US tariffs. Among key movers, Maybank and IHH Healthcare declined, while Public Bank and Tenaga Nasional posted modest gains. All major sector indices including financials, industrials, and plantations finished in negative territory.
Global Markets Review: US stocks finished mixed after a volatile session on Tuesday, with the Dow slipping 0.4%, the S&P 500 down 0.1%, and the NASDAQ posting a marginal 0.03% gain. Investor sentiment remained cautious as markets looked for greater clarity on US trade policy following President Trump’s latest tariff threats, which dampened optimism around ongoing negotiations with key trading partners. Meanwhile, European markets closed higher as investors largely brushed off tariff concerns, buoyed by hopes that major economies will reach trade deals with the US ahead of the August 1 deadline. Most Asian stock markets also advanced, with the muted reaction to new tariff warnings reflecting growing scepticism that the White House will act decisively on its threats.
Market Outlook: KLCI remains under pressure following Wall Street’s decline and President Trump’s announcement of a 25% tariff on Malaysian imports, which is 1%-pts higher than previously indicated during the 'Liberation Day' announcement. While the benchmark index is expected to trend within the 1,520–1,550 range, the recent sell-off may present bargain-hunting opportunities as valuations become more attractive. Investors should also closely monitor the BNM Monetary Policy Decision today which we expect OPR to stay pat at 3.0% and the release of IPI data on Friday for clearer signals on the market’s direction amid ongoing uncertainty.
Sector focus. While sentiment has slightly improved, we recommend maintaining a defensive approach amid ongoing market volatility, with a preference for the financial, REIT, and plantation sectors, given their relative resilience and stable income profiles.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI took another beating yesterday to deepen its correction phase to res-test SMA50. Indicators, however 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)
Binastra Corp Bhd secured a RM405m contract from Exsim Jalil Link Sdn Bhd for a residential project in Bukit Jalil. The related party deal involves major shareholders with interests in both companies. The Queenswoodz will offer 1,004 residential units with supporting facilities, built over 41 months.
Sapura Energy Bhd will hold an EGM on July 30 to seek approval for a regularisation plan, including capital reduction, debt restructuring and a 20-to-1 share consolidation aiming to exit PN17 status and restore profitability.
SkyWorld Development Bhd is buying 25.9 acres in Batu Kawan, Penang, for RM48.5m as part of a joint affordable housing project. The RBB initiative targets middle-income households, with units priced from RM225,000 to RM420,000.
Bina Puri Holdings Bhd faces two winding-up petitions over unpaid taxes totalling RM5.1m. The group is seeking legal advice as this brings its 2025 winding-up petitions to at least five.
Alliance Bank Bhd saw its rights issue oversubscribed by 55.1% raising RM606.5m. The new shares priced at RM3.3 each will be listed on July 15 and proceeds will fund working capital and investments.
AEON Credit Service M Bhd reported a 27.1% drop in 1QFY26 net profit to RM77.6m due to higher impairment losses, despite a 14.9% rise in revenue to RM599.9m. No dividend was declared.
NPC Resources Bhd will be delisted on July 11 after co-founder Datuk Loo Pang Kee and Jubilant Ventures completed a RM2.8/share privatisation, buying the remaining shares worth about RM143m.
YTL Power International Bhd has invested around RM10bn in AI and data centre infrastructure, including partnerships with Nvidia and global hyperscalers, and is encouraging local firms to leverage its technology platform.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.225966 | 4.255930 |
EUR | 4.976570 | 4.982175 |
CNY | 0.590522 | 0.591222 |
HKD | 0.538270 | 0.542098 |
SGD | 3.305129 | 3.331922 |