Market Review & Outlook
Malaysia Market Review: The FBM KLCI pared earlier losses to end -0.1% on Monday, influenced by weak performances in heavyweight counters like Sunway Construction, F&N and Nestle. Lower liners also slipped, mirroring cautious sentiment seen in larger indices. REITs (+0.5%) continue to outperform as investors adopt a wait-and-see approach ahead of anticipated economic announcements. Foreign investors turned net sellers again as regional uncertainties, coupled with selective weaknesses in blue-chip stocks influenced the subdued tone.
Global Markets Review: US stocks extended gains as the S&P 500 and Nasdaq closed at yet another record high. Optimism around earnings overshadowed any investor fears over the latest development in trade. Of 62 S&P 500 companies that have reported thus far, more than 85% have topped expectations. Across the Atlantic, European markets ended a choppy session lower as investors digested mixed corporate earnings and awaited clarity on US tariffs on EU goods. Gains were mainly led by mining stocks resulting from a rise in iron ore and steel prices after China announced the start of construction on its mega-dam project in Tibet. In Asia, all major indices closed in positive territory. Japan markets were closed due to a public holiday.
Market Outlook: A dip in trading value indicates that investors are sitting on the sideline pending Prime Minister Anwar Ibrahim’s announcement on additional measures to address the rising cost of living. We expect the FBM KLCI to trade rangebound in the immediate future pending fresh catalysts. Any positive development may encourage bargain hunting opportunities to emerge, particularly in sectors like healthcare, technology and consumer that have under heavy selling pressure since the start of the year. Investors will also be closely watching Fed Chair Powell’s speech today for further cues on US monetary policy.
Sector focus. We favour the REIT as a defensive play as several key uncertainties continue to cloud investor sentiment. Additionally, we continue to see merit in selectively accumulating domestic-focused power ancillary and renewable energy 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 paused its short-lived momentum after closing marginally lower on Monday, pulling back after failing to break above the SMA50. Indicators remained negative with the MACD Line hovering 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)
Sunway Construction Group Bhd said one of its employees is being investigated by the country’s anti-graft agency over engagements with unnamed sub-contractors.
Apex Healthcare Bhd climbed to an eight-month high on Monday following news that the founding Kee family could be looking to exit the pharmaceutical company.
CapitaLand Malaysia Trust, which reported a 7.3% increase in net property income (NPI) to RM138.84 million in the first half of 2025 (1HFY2025), remains positive on its prospects for the second half of this year, but has flagged uncertainties stemming from the expanded sales and service tax (SST) and electricity tariffs revision.
United Plantations Bhd reported a 34.12% year-on-year jump in its second quarter net profit to RM249.38 million from RM185.94 million, driven by higher revenue.
Aneka Jaringan Holdings Bhd has won a RM72.3 million contract to undertake piling works for a proposed data centre development in Eco Business Park V, Ijok, Selangor.
Prolintas Managers Sdn Bhd, the trustee-manager of Prolintas Infra Business Trust, has appointed Mohamad Idros Mosin as its chief executive officer (CEO) effective Monday (July 21), filling a leadership vacuum that had been managed by an interim executive team since earlier this year.
Green Packet Bhd has appointed Datuk Wira Shahul Hameed Shaik Dawood as its new managing director (MD) and group chief executive officer (CEO), effective Monday.
Cahya Mata Sarawak Bhd has appointed Sinoma Industry Engineering (M) Sdn Bhd, a subsidiary of China’s Tianjin Cement Industry Design & Research Institute (TCDRI), as the engineering, procurement, construction and commissioning (EPCC) contractor to build a new 6,000-tonne-per-day clinker line at its Mambong Integrated Plant in Kuching.
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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 |