Opening Daily Highlight
Mixed
Embracing renewed volatility
Fri, 18-Jul-2025 07:41 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review:  The FBM KLCI rebounded by 0.6%, snapping a two-day losing streak, supported by improved sentiment following Wall Street’s overnight recovery. Lower liners also staged a modest recovery, with bargain hunting emerging in selected small and mid-cap names. Sector-wise, the construction sector (+1.4%) led the charge, outperforming its sectoral peers which largely ended in positive territory.

 

Global Markets Review: Wall Street rebounded for a second straight session, with the S&P 500 and Nasdaq closing at record highs, supported by encouraging corporate earnings and solid June economic data. Initial jobless claims in the US declined last week, pointing to steady labour market conditions in July, while retail sales rebounded more than expected, reinforcing optimism around consumer resilience. Similarly, European markets advanced, buoyed by upbeat earnings across key sectors. In Asia, markets ended mostly higher, led by gains in China, Japan, and Australia. Japan’s Nikkei (+0.6%) climbed on strength in technology shares, while Australia’s ASX 200 (+0.9%) and China’s CSI 300 (+0.7%) rose in tandem with improving global risk appetite. 

 

Market Outlook: While the local bourse has rebounded from recent weakness, the FBM KLCI is expected to remain volatile amid lingering uncertainty over the impending US decision on Malaysia’s tariffs. A failure to reach an accord could weigh heavily on export-oriented sectors and dampen economic growth. Similarly, the recent uptick in lower liners may be short-lived given subdued trading activity. We reckon that persistent foreign fund outflows continue to pressure market liquidity and erode investor confidence, particularly in the absence of fresh domestic catalysts. On the economic front, investors will be closely monitoring Malaysia’s trade balance figures and the US Michigan Consumer Sentiment Index, both scheduled for release today.

 

Sector focus. We advocate investors to rotate into defensive sectors such as REITs, which tend to offer earnings resilience during periods of macroeconomic uncertainty. That said, we also see merit in selectively accumulating domestic-focused power infrastructure and solar players, which are well positioned to benefit from structural growth drivers such as data centre expansion and the ongoing energy transition, trends that should remain intact despite global trade headwinds.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a bullish candle to snap a three-day losing run. 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)

CBH Engineering Holding Bhd has secured a contract worth RM172 million to build a substation’s electrical supply system at a proposed data centre in Selangor.

 

NexG Bhd, formerly known as Datasonic Group Bhd, has secured a six-month contract extension from the Ministry of Home Affairs (KDN) to continue supplying passport chips to the Immigration Department.

 

Sunway Bhd and SGX-listed Sing Holdings Ltd have successfully secured a residential development tender in Chuan Grove, Singapore, after submitting the highest bid of S$703.6 million (RM2.33 billion), or S$1,376 per square foot per plot ratio.

 

Mudajaya Group Bhd said its Indian unit RKM Powergen has been cleared by the High Court of Madras in a case linked to the alleged fraudulent acquisition of the Fatehpur East Coal Block in Chhattisgarh, allocated in 2008.

 

iCents Group Holdings Bhd, which debuted on the ACE Market on Thursday, is aiming for 10%-15% revenue growth over the next two years, driven by recurring income from retrofit, maintenance and upgrade services.

 

Ancom Nylex Bhd’s net profit for the financial year ended May 31, 2025 (FY2025) fell 22.1% to RM63.49 million from RM81.47 million a year earlier, as the group was weighed down by elevated freight costs and unfavourable foreign exchange movements.

 

Retirement Fund Inc, better known as Kumpulan Wang Persaraan Diperbadankan (KWAP), has ceased to be a substantial shareholder in Zetrix AI Bhd after disposing of nearly eight million shares in the company earlier this week.

 

Sunway Construction Group Bhd notified on Thursday that the Employees Provident Fund (EPF) has ceased to be a substantial shareholder in the group.

 

Tan Sri Lim Kuang Sia, founder and group managing director of Kossan Rubber Industries Bhd, and his brother Lim Kuang Wang are no longer substantial shareholders of Berjaya Corp Bhd.

 

NationGate Holdings Bhd said the recent raid by the Malaysian Anti-Corruption Commission (MACC) on its wholly-owned subsidiary is not expected to have a significant impact on the group’s financial performance or operations — for the time being.

Sentiment: Positive
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