Market Review & Outlook
Malaysia Market Review: KLCI ended nearly flat easing 0.1% to close at 1,529.24 pts, after BNM surprised the market by cutting the OPR by 25-bps to 2.75% as a pre-emptive step amid weakening global demand and softer domestic growth. Most sectors closed in positive territory, while the Financial Services sector (-0.6%) lagged on concerns over weaker margins, marking the third consecutive decline.
Global Markets Review: US stocks closed higher on Wednesday, with the S&P 500 rising 0.6%, the Nasdaq advancing 0.9% to a record close, and the Dow gaining 0.5%. Despite ongoing concerns about US tariff policy, investor focus shifted to a robust tech rally, overshadowing the latest trade headlines from President Trump. European shares ended at a four-week high, led by strength in banks and a surge in defence stocks to all-time highs, amid optimism that the EU and US could reach a preliminary trade agreement. Across Asia, markets ended mixed with Chinese stocks declined after mixed inflation data, with Hong Kong’s Hang Seng falling 1.1%, its sharpest daily drop since June. In contrast, Japan’s Nikkei 225 added 0.3% buoyed by a weaker yen that lifted automakers, while South Korea’s Kospi advanced 0.6% to its highest level since September 2021, supported by rallies in local defence and financial stocks despite the new tariffs.
Market Outlook: Volatility in the FBM KLCI will remain a feature, despite improved sentiment following the BNM’s decision to reduce the OPR by 25-bps to 2.75% and US Fed continues to paint a slight dovish tone over potential future rate cuts. Escalating global trade tensions have heightened market uncertainty, with traders increasingly concerned about the imposition of a reciprocal 25% US tariff on Malaysian exports, which has materially shifted foreign portfolio dynamics. We believe that thinning trading activity may limit upside today, as much of the current environment is already priced in. Looking ahead, investors will closely monitor the release of IPI data on Friday for clearer signals on the market’s direction amid ongoing uncertainty.
Sector focus. Following the central bank’s decision to reduce the OPR, we expect continued buying interest in REITs, supported by their attractive dividend yields and lower financing costs. In contrast, financial stocks may remain under selling pressure, as lower rates tend to compress banks’ net interest margins and dampen profitability expectations.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a long leg doji to defend the 1,520 psychological level. 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)
Econpile Holdings Bhd secured a RM27.0m piling contract in Kelana Jaya, to be completed in 12 months. Order book stood at RM404.0m as of March, boosted by RM57.9m in new contracts last week.
IHH Healthcare Bhd is expanding into Indonesia and Vietnam to counter rising regional costs, leveraging new market reforms and recent hospital acquisitions across Asia and Turkey.
LGMS Bhd will acquire 27.0% of Antarex Holdings for RM22.7m to enhance its cyber security footprint. The deal includes a RM24.5m profit guarantee through FY2028.
PMCK Bhd targets 70–80% bed occupancy for FY2026 by keeping treatment prices low, encouraging high repeat patient rates at its Alor Setar medical centre.
Ahmad Zaki Resources Bhd faces a winding-up petition for RM5.9m in alleged unpaid debt; the company disputes the claim and will contest it in court.
Handal Energy Bhd is being sued for RM3.1m by a company linked to its former managing director. Handal asserts a strong legal defence.
Ecobuilt Holdings Bhd subsidiary Rexallent Construction faces a winding-up petition over a RM0.4m debt, with a hearing scheduled for September.
Rex Industry Bhd takeover by ETA Industries became unconditional after crossing 50% ownership. The offer remains open until July 25 at 10 sen/share.
Paramount Corp Bhd launched a campaign with Cathay Pacific, offering up to 40,000 Asia Miles to homebuyers across multiple developments until Dec 31, 2025.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.231055 | 4.263804 |
EUR | 4.979682 | 4.983636 |
CNY | 0.591415 | 0.591888 |
HKD | 0.539065 | 0.542720 |
SGD | 3.309111 | 3.331706 |