Market Review & Outlook
Malaysia Market Review: FBM KLCI inched up 0.1% on Monday amidst stronger-than-expected trade data from China. Meanwhile, lower-liner stocks also gained, backed by healthy retail participations. Sector wise, the Energy sector (+1.3%) attracted the highest buying interest, while the Utilities sector (-0.3%) topped the laggards.
Global Markets Review: Wall Street closed slightly higher on Monday as investors bet that the tariffs will eventually be negotiated down ahead of the 1st August deadline. In contrast, European markets broadly declined, with export and auto-related sectors under pressure due to escalating tariff risks. Over the weekend, US president Donald Trump announced a 30% tariff on EU. Meanwhile, Asian equities ended mixed while investors awaited key economic data from China.
Market Outlook: The FBM KLCI is expected to remain in consolidation mode with a downward bias in the near term, as investors continue to tread cautiously amid the absence of fresh catalysts. Sentiment remains fragile due to escalating global trade tensions, with markets closely watching Wall Street’s performance and any further developments related to Trump’s latest tariff threats. Despite the external headwinds, we continue to advocate for selective accumulation of fundamentally resilient stocks, particularly those with greater domestic exposure and clear earnings visibility. On the macro front, investor focus will shift to a slate of key economic data from China, as well as the closely watched US inflation figures scheduled for release today, both of which could provide further direction for the regional markets.
Sector focus. We advocate investors to rotate into defensive sectors such as REITs and hospital operators, which tend to offer earnings resilience during periods of macroeconomic uncertainty. In addition, buying interest may emerge in gold-related stocks as investors shift towards safe-haven assets following Trump’s move to further escalate the global trade war with the announcement of new tariffs.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI edged higher overnight after a choppy trading session only to close at the SMA50 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)
The High Court has ordered former group chief executive of Sime Darby Bhd Datuk Seri Ahmad Zubair @ Ahmad Zubir Murshid and four former senior executives of the company to jointly and severally pay over RM350 million in multiple currencies as restitution for wrongful payments made to consultants in Sime Darby’s Qatar Petroleum Project.
Bursa Malaysia Securities Bhd has publicly reprimanded Zetrix AI Bhd, formerly known as MyEG Services Bhd and fined seven of its directors RM150,000 each over misleading announcements and non-compliance with a regulatory directive.
Ramssol Group Bhd is disposing of a 40% stake in its wholly-owned subsidiary Rider Gate Sdn Bhd to NASDAQ-listed SAGTEC Global Ltd for RM25 million as part of a partnership to accelerate the growth of its AutoTech platform while unlocking capital for the group.
Malayan Banking Bhd is extending a US$150 million (RM638.18 million) sustainability-linked loan (SLL) to Austria Technologie & Systemtechnik Malaysia (AT&S Malaysia), which the bank said is the first such SLL loan by a Malaysian and Southeast Asian lender to AT&S, and notably, the first such facility by a local lender to a multinational company in Malaysia's burgeoning semiconductor sector.
Rubber glove maker Flexidynamic Holdings Bhd plans to diversify into the gamma sterilisation business by acquiring a 51% stake in Gammatech Sdn Bhd for RM16.08 million.
Independent adviser cfSolutions has advised minority shareholders of Rex Industry Bhd to reject the conditional mandatory takeover offer by controlling shareholder ETA Industries.
Hengyuan Refining Company Bhd is planning to raise up to RM300 million through a renounceable rights issue that includes free detachable warrants to finance the purchase of crude oil.
Capital A Bhd has signed a memorandum of understanding (MOU) with national railway company Keretapi Tanah Melayu Bhd (KTMB) to transform and integrate travel service and logistics within the country.
CIMB Group Holdings Bhd has raised its sustainable finance target to RM300 billion by 2030, triple its earlier target, to support its clients in navigating risks and building resilience in a low-carbon and more inclusive economy.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.235841 | 4.269471 |
EUR | 4.969005 | 4.974129 |
CNY | 0.592897 | 0.593485 |
HKD | 0.539796 | 0.543571 |
SGD | 3.308321 | 3.331662 |