Malaysia Market Review: The FBM KLCI surrendered earlier gains to finish down 0.3% yesterday. Most sectors were in the red, led by the Construction sector (-1.1%). On the flipside, the Consumer sector bucked the trend (+0.3%), supported by market anticipation of government cash handouts, slated for announcement at 10:30 am today. The lower liners also registered losses, mirroring weakness in broader market. Foreign investors resumed their selling spree, emerging as net sellers in four of the last five trading sessions.
Global Markets Review: It was a mixed bag in Wall Street, with the S&P 500 inching up 0.1% to another record close, the Dow gaining 0.4%, while the Nasdaq slipped 0.4%. Chip stocks came under pressure, following a Wall Street Journal report indicating that SoftBank and OpenAI’s ambitious USD500bn AI project has faced difficulties in getting underway, prompting a scale-down of near-term plans. In Europe, major indices continued their decline, weighed down by trade uncertainty and mixed earnings. Moving east, Asian equities ended mostly in the positive territory as the market drew strength from record-high close on Wall Street.
Market Outlook: Investors will be closely monitoring Prime Minister Anwar Ibrahim’s highly anticipated “special appreciation” announcement at 10:30am today, seeking further signs of fiscal stimulus. In the near term, market sentiment is expected to be muted ahead of the looming US tariff deadline. Investors direction will hinge on the progress of ongoing trade talks, with Bloomberg reporting that the Malaysia is seeking to lower US tariffs to around 20%. Any positive development could trigger bargain-hunting interest in export-oriented sectors such as rubber gloves and technology. Meanwhile, President Trump announced a new 19% tariff on goods from the Philippines, adding a fresh dimension to regional trade dynamics. These developments may influence broader market sentiment in the days ahead.
Sector focus. Consumer sector may see continued interest, supported by market anticipation of government cash handouts, slated for announcement today. 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 energy transition—trends we expect to remain resilient despite global trade uncertainties.
Technical Commentary: The FBM KLCI pared earlier gains to extend its slide to, rejecting the SMA50 level yesterday. 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)
Pavilion Real Estate Investment Trust cautioned that its operating margins may come under pressure due to higher service taxes on commercial rentals, minimum wage hikes, and ongoing subsidy rationalisation.
Tenaga Nasional Bhd has received High Court approval to initiate a judicial review against the Inland Revenue Board over a RM291.55 million tax assessment for FY2018.
Jati Tinggi Group Bhd secured a RM19.41 million contract from Tenaga Nasional Bhd for submarine cable works in Perak via a 70:30 joint venture.
Pestec International Bhd is facing a RM17.52 million lawsuit from its former group CEO Paul Lim Pay Chuan and ex-deputy chairman Lim Ah Hock over alleged unpaid advances.
Majuperak Holdings Bhd’s RM18.4 million proposed disposal of Brewster Village to Ladang Lekir Sdn Bhd was terminated due to unmet conditions.
HI Mobility Bhd confirmed that several drivers operating its Causeway Link services staged a strike following recent wage cuts.
Labuan-based European Credit Investment Bank Ltd (ECIB) has emerged as the third-largest shareholder in Oasis Harvest Corp Bhd after acquiring 1.39 million shares, or a 5.78% stake, via open market purchase on July 18.
UUE Holdings Bhd has signed a memorandum of understanding with ASEAN Cableship Pte Ltd to explore a joint venture offering horizontal directional drilling (HDD) solutions for offshore telecommunications and infrastructure projects in Malaysia and Singapore.
SL Innovation Capital Bhd has deferred its proposed transfer from the LEAP Market to the ACE Market, citing prevailing market uncertainties.
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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 |