Market Review & Outlook
Malaysia Market Review: The FBM KLCI declined 0.8% on Tuesday, weighed down by profit-taking in heavyweight counters. The selldown reflected a broader risk-off tone, with investors trimming positions amid heightened uncertainty. Meanwhile, lower liners ended on a mixed note, suggesting selective trading interest in a cautious market environment. Sector wise, the REIT sector (+0.8%) outperformed as the sole gainer, buoyed by its defensive nature and a slight retreat in bond yields. In contrast, the Construction sector (-1.5%) led the decliners, succumbing to profit-taking after recent gains.
Global Markets Review: Wall Street closed mixed on Tuesday, as the S&P 500 fell 0.4% and the Dow dropped 1.0%, due to concerns over US inflation. In contrast, the Nasdaq gained 0.2%, thanks to tech counters such as Nvidia following Nvidia’s announcement that it will soon resume sales of its H20 AI chip to China upon receiving licenses from the US government. The European markets also retreated, following the US inflation report that showed prices rising. On the other hand, Asian equities rallied, supported by China’s stronger-than-expected 2Q25 GDP growth, while Chinese tech stocks surged after Nvidia announced plans to resume H20 AI chip sales to China, lifting sentiment across the sector.
Market Outlook: We expect the local bourse to come under profit-taking pressure today, as foreign investors may reposition into Chinese equities following upbeat economic data from China. According to the National Bureau of Statistics, China’s GDP grew 5.2% in 2Q25, slightly surpassing economists’ expectations of 5.1%, reinforcing optimism over the region’s growth trajectory. On the macro front, market attention will be closely focused on several key US economic indicators, including the PPI, industrial production, and manufacturing data, alongside a series of corporate earnings releases from major US banks.
Sector focus. We advocate investors to rotate into defensive sectors such as REITs, 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 has formed a bearish candle to extend its pullback mode following the recent gains. Indicators turned negative with the MACD Line hovered below the Signal Line, while the RSI hooked below 50. Immediate resistance is located at 1,560, followed by 1,580. Support is envisaged around 1,500.
Company News (source: various)
NationGate Holdings Bhd said on Tuesday that the Malaysian Anti-Corruption Commission (MACC) had raided the premises of its wholly owned subsidiary, NationGate Solution (M) Sdn Bhd, as part of an ongoing investigation into alleged scrap metal smuggling.
Zetrix AI Bhd, formerly MyEG Services Bhd, said on Tuesday it will challenge Bursa Securities’ public reprimand for breaking Main Market listing rules.
YNH Property Bhd on Tuesday terminated a development agreement with Chin Hin Group Property Bhd for an apartment project in Segambut, Kuala Lumpur, and will instead sell the 6.49-acre parcel to Chin Hin via a direct land deal.
Oil and gas services firm T7 Global Bhd has on Tuesday secured a six-month contract extension from Hibiscus Petroleum Bhd for the provision of maintenance, construction and modification (MCM) services.
Luxchem Corp Bhd is acquiring five leasehold industrial lands in Mukim Kapar, Klang, for RM45.59 million in cash, as part of its strategy to optimise surplus cash reserves by investing in income-generating real estate assets.
Tomypak Holdings Bhd announced that its wholly-owned subsidiary, Tomypak Flexible Packaging Sdn Bhd (TFP), has exercised a call option to acquire an additional 10% equity interest in EB Packaging Sdn Bhd for RM6.687 million that will raise its shareholding in the latter to 90%.
Cable manufacturer Master Tec Group Bhd has signed a memorandum of understanding (MOU) with Kuching-based Senari Synergy Sdn Bhd (SSSB) to jointly assess the feasibility of establishing a cable manufacturing facility in Sarawak.
Petronas Gas Bhd has entered into a settlement agreement with BASF Petronas Chemicals Sdn Bhd (BPC) under which BPC will pay RM52 million to resolve disputes arising from an electricity supply agreement.
MBSB Bhd said it has rebranded its investment banking arm that was taken over following the RM1.01 billion acquisition of Malaysian Industrial Development Finance (MIDF) in 2023.
Urusharta Jamaah Sdn Bhd, a special purpose vehicle under Malaysia's Ministry of Finance, has emerged as a substantial shareholder in Elridge Energy Bhd with a 5.26% direct stake.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.252266 | 4.285870 |
EUR | 4.877194 | 4.882265 |
CNY | 0.592038 | 0.592649 |
HKD | 0.541750 | 0.545537 |
SGD | 3.279721 | 3.302705 |