Opening Daily Highlight
Mixed
Recovering Investor Sentiment
Mon, 21-Jul-2025 07:48 am
by Research Team • Apex Research

Malaysia Market Review:  The FBM KLCI advanced 0.3% on Friday following the stronger-than-expected 2Q25 GDP reading. Lower liners also gained. The Construction sector outperformed, rallying 3.4% after the Transport Ministry granted final approval for the MRT3 project on Thursday. Foreign investors turned net buyers after a 3-day exodus, buoyed by improved sentiment.

 

Global Markets Review: Wall Street traded largely flat on Friday as major indices hovered near record highs. Investor sentiment remained upbeat, underpinned by robust corporate earnings and easing Treasury yields. However, gains were capped by mixed macroeconomic data and reports that President Trump is pushing for a minimum tariff of 15%–20% on EU imports. The University of Michigan’s Consumer Sentiment Index showed an improvement in July, alongside a decline in inflation expectations. Conversely, single-family housing starts fell to an 11-month low in June, highlighting softness in the housing sector. European markets also closed flat, as strength in oil and gas stocks offset losses in healthcare names. In Asia, most equity markets ended the day in a positive territory, supported by upbeat corporate earnings. However, Japan’s Nikkei slipped amid political uncertainty ahead of the upcoming upper-house election.

 

Market Outlook: The FBM KLCI appears to have found support, but we expect range-bound trading in the near term as investors await clarity on US tariff negotiations. Early signs of trade slowdown have emerged, with Malaysia’s June exports unexpectedly contracting. That said, renewed foreign interest in blue-chip financials and utilities stocks may help cushion against external headwinds. All eyes will be on Malaysia’s inflation data due Tuesday, which may offer further insight into Bank Negara Malaysia’s policy trajectory.

 

Sector focus. Select construction stocks may face near-term pressure following reports of alleged corruption related to a data centre project tender in Johor. While this could lead to near-term sentiment overhang and heightened regulatory scrutiny, we believe the broader thematic remains intact. We continue to see merit in selectively accumulating domestic-focused power infrastructure and solar players, which stand to benefit from structural growth drivers such as data centre expansion and the ongoing energy transition—trends we expect to remain resilient despite global trade uncertainties.

 

Technical Commentary: The FBM KLCI extended its upward momentum after inching marginally higher on Friday, pulling back slightly after testing the SMA50. Indicators remained negative with the MACD Line hovered below the Signal Line, while the RSI stayed below 50. Immediate resistance is located at 1,550, followed by 1,580. Support is envisaged around 1,500.

 

Company News (source: various)

Sabah-based property developer KTI Landmark Bhd has secured a RM130.6 million contract to build the Malaysian Building Academy (ABM) campus in the state.

 

Telecommunications services provider Silver Ridge Holdings Bhd said its 51%-owned unit has secured a RM16.9 million contract for the installation of underground cables.

 

Pestec International Bhd has resolved to remove its group chief executive officer Lim Pay Chuan from office effective immediately after he refused to return to work.

 

TH Plantations Bhd, the plantation arm of Lembaga Tabung Haji, on Friday issued show cause letters to both its chief executive officer (CEO) Mohamed Zainurin Mohamed Zain and chief financial officer Marliyana Omar.

 

Construction outfit PTT Synergy Group Bhd has proposed to acquire 4.56 hectares of freehold land in Rawang, Selangor, for RM60 million to build a commercial warehouse.

 

Cash-rich Globetronics Technology Bhd's latest investment is the purchase of a 30.85% equity interest and 53.99% of Warrant C in loss-making Mpire Global Bhd.

 

Singapore-based private equity firm Dymon Asia Private Equity (SE Asia) Fund LP (DAPE) has halved its stake in Spritzer Bhd, following the disposal of 34.8 million shares — equivalent to a 5.47% interest in the mineral water producer.

 

Enproserve Group Bhd is expanding its crane services to boost its margins post-listing.

 

SD Guthrie Bhd, the world’s largest palm oil producer, has launched a B30 biodiesel pilot project to ensure a reliable and scalable supply of higher bio-content diesel for its plantation operations in Carey Island, Selangor.

 

Construction and renewable energy projects provider TCS Group Holdings Bhd has proposed to place out up to 10% of its total issued shares to third-party investors to be identified to raise as much as RM8.51 million, primarily for working capital in four ongoing construction projects.

Sentiment: Neutral
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