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Improved Sentiment
Fri, 11-Jul-2025 07:15 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review:  FBM KLCI rebounded 0.5% to close at 1,536.52 pts on late buying in banking stocks, snapping a three-day losing streak. Most sectors closed in positive territory, buoyed by improved sentiment following BNM’s rate cut. In contrast, the plantation and energy sectors ended lower, with plantations posting the steepest decline among major indices.

 

Global Markets Review: US stocks closed modestly higher on Thursday, with the S&P 500 and Nasdaq Composite both setting new record highs, while the Dow climbed 0.4% and approached its all-time peak. Investors largely shrugged off renewed tariff concerns, instead focusing on strong earnings and broad sector gains. In Europe, shares advanced, led by mining stocks, as optimism grew over a potential US-EU trade agreement. Most Asian markets also finished higher, buoyed by gains in technology shares following Nvidia’s rally past a $4trn valuation, though lingering US tariff concerns capped gains. China’s main indices inched up 0.3% but remained subdued on soft inflation data, while Hong Kong’s Hang Seng was flat as tech gains offset losses in Chinese names. Japanese stocks lagged with the Nikkei 225 down 0.5% after the US imposed 25% tariffs and trade talks stalled. In contrast, South Korea’s KOSPI led regional gains, rising 0.8% on strong performance from local chipmakers and steady monetary policy from the Bank of Korea.

 

Market Outlook: Sentiment on the FBM KLCI has improved lately, supported by Bank Negara’s recent 25-bps OPR cut and growing confidence that trade agreements could be reached to cushion the impact of President Trump’s expanded tariff measures, as reflected in stronger trading activity. Bargain-hunting is likely to extend today, fuelled in part by positive spillover from global markets especially following the robust rally in tech stocks led by Nvidia. On the local front, reclaiming the 1,530 threshold marks an important technical milestone for the index and we expect the FBM KLCI to trade within the 1,530–1,550 range towards the weekend. Investors should closely monitor today’s IPI data release for clearer signals on the market’s direction.

 

Sector focus. We expect continued buying interest in consumer discretionary and REITs, supported by the recent OPR cut and lower borrowing costs. Tech stocks could also see a rally today driven by positive spillover effects from strong gains in global technology shares.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a hammer candle to snap a four-day losing streak. 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)

NexG Bhd is acquiring an industrial property in Petaling Jaya for RM28.5m to consolidate research, design, and production under one roof, aiming to boost efficiency and output for current and future projects.

 

Avaland Bhd is buying a 3.2-acre land parcel on Jalan Putra, Kuala Lumpur from Tan Chong for RM148.8m, with plans for a mixed-use commercial project valued at RM900m. This is Avaland’s second land deal with Tan Chong this month.

 

Ho Hup Construction has received a winding-up petition from the IRB over RM23.7m in tax arrears owed by subsidiary Bukit Jalil Development, which is now under creditors’ voluntary liquidation.

 

Atlan Holdings Bhd posted a 41% drop in quarterly net profit to RM3.1m on weaker revenue, its lowest in nearly three years, but declared a higher interim dividend of 5 sen/share.

 

Propel Global Bhd plans a private placement of up to 73.0m new shares to raise RM6.6m for working capital, mainly for bank guarantees, new project tenders, and administrative expenses.

 

Sarawak Cable Bhd will be delisted from Bursa Malaysia on July 15 after its appeal for more time to submit a regularisation plan was rejected. The company remains operational but will no longer be listed.

 

Jasa Kita Bhd will suspend trading of its shares from July 11 pending a significant announcement. The stock has risen over 21% this week, closing at 36.5 sen for a market cap of RM164.1m.

 

Enproserve Group Bhd will debut on the ACE Market on July 18. Its IPO was oversubscribed by 0.43x, with 1,414 applications from the public for 75.0m shares at 24 sen each.

 

Sentiment: Neutral
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Market Mover
Settlement Rates
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