Opening Daily Highlight
Mixed
Extended Pullback Market Review & Outlook
Thu, 17-Jul-2025 07:29 am
by Research Team • Apex Research

Malaysia Market Review:  The FBM KLCI ended 0.9% lower on Wednesday, slipping to its lowest level in over a week as broad-based selling persisted amid global headwinds. Lower liners also underperformed, reflecting weak risk appetite and subdued trading interest across the broader market. Sector-wise, the healthcare sector led the laggards with a 2.5% decline, marking the steepest drop among its sectoral peers.

 

Global Markets Review: Wall Street rebounded on Wednesday, clawing back earlier losses driven by political uncertainty. Markets initially slipped on renewed speculation that President Trump might remove Fed Chair Powell, sparking volatility across equities and bonds. However, sentiment improved after the White House swiftly denied the rumours. Meanwhile, European markets ended lower due to losses in technology stocks, while most Asian markets also closed in the red after US President Donald Trump announced a deal with Indonesia that will tariff its goods at 19%.

 

Market Outlook: Yesterday’s weakness was broadly in line with declines across regional markets, as risk sentiment remained fragile amid persistent global volatility. Looking ahead, we expect the downward bias to persist, with the 1,500 psychological support level likely to come under pressure amid ongoing uncertainty on Wall Street and the absence of fresh domestic catalysts. Malaysia recorded its highest level of foreign bond outflows in June, reflecting cautious investor sentiment toward emerging markets. We view this as negative for the local bourse, as continued outflows may pressure the ringgit, tighten domestic liquidity, and dampen market confidence. Economic wise, investors will be monitoring the EU inflation rate and US retail sales as well as series of corporate earnings releases.

 

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 extended its pullback, closing lower for a third straight session as bearish momentum gained traction. Indicators turned negative with the MACD Line hovered below the Signal Line, while the RSI hooked below 50. Immediate resistance is located at 1,550, followed by 1,580. Support is envisaged around 1,500.

 

Company News (source: various)

The Perak state government has appointed a joint venture (JV) between Gamuda Bhd and Perbadanan Kemajuan Negeri Perak (PKNPk) to develop and operate water treatment and distribution infrastructure in Kerian, Northern Perak — a key component of the RM5 billion Northern Perak Water Supply Scheme (NPWSS).

 

Kawan Renergy Bhd has secured a RM38.81 million contract from Gas Malaysia Energy Advance Sdn Bhd (GMEA) for the construction of a gas turbine co-generation system in Port Klang.

 

Tan Chong Motor Holdings Bhd has been slapped with an unusual market activity (UMA) query by Bursa Malaysia Securities after the automotive assembler and distributor's share price surged to a near one-year high.

 

Pekat Group Bhd plans to raise up to RM84.68 million by issuing 66.16 million new shares, or 10% of its total shares, a move that will boost its market value over RM1 billion.

 

Avaland Bhd announced that Phase 1 of Avalon, comprising 166 units of Balinese-inspired double-storey homes located within its Cybersouth township development, is fully taken up.

 

CelcomDigi Bhd has launched its new flagship “Life” stores at The Gardens Mall and Sunway Pyramid, marking a new step in its retail journey. Chief executive officer Datuk Idham Nawawi said the Life stores aim to offer more than basic connectivity by providing an immersive experience where customers can explore the latest technology.

 

UUE Holdings Bhd which debuted on the ACE Market of Bursa Malaysia in July last year, has announced a bonus issue along with plans to diversify into renewable energy facilities development.

Sentiment: Negative
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.213466 4.244897
EUR 4.946298 4.953651
CNY 0.592866 0.593738
HKD 0.540491 0.544550
SGD 3.282193 3.306905