Market Review & Outlook
Malaysia Market Review: The FBM KLCI snapped a two-days losing streak to end on a strong note. Investors turned optimistic as regional trade deals in the Philippines and Japan raised hopes that Putrajaya will soon be able to reach a constructive agreement with Washington. Market sentiment was also boosted as Prime Minister Anwar Ibrahim announced a one-time RM100 National Day cash handout. Gains were broad-based, led by the Technology sector (+1.5%), while small caps rallied on bargain hunting interests. Local institutional investors registered their fourth consecutive net outflows as foreign investors returned.
Global Markets Review: The S&P 500 marked its 3rd straight record close with a stellar +0.8% performance, while the Dow ended the session at a blistering +1.1%, inching closer to its all-time high. Trade deal optimism was further boosted after the Financial Times reported that the US and EU were nearing a 15% tariff agreement, similar to the one struck with Japan. In Europe, major indices reversed their recent declines to close higher in tandem with Wall Street. Asian markets rallied broadly as Japan’s 15% tariff agreement sparked confidence of easing trade tensions.
Market Outlook: We expect some short-term positive momentum following the recent announcement of fiscal stimulus measures and positive development on the regional tariff negotiations. While the proposed reduction of subsidised RON95 prices came as a positive surprise, the final details will only be announced in late September. All eyes will be on the progress of ongoing trade talks in hopes that Malaysia is able to secure a favourable deal with Trump ahead of the 1 August deadline. Any positive development could trigger bargain-hunting interest in export-oriented sectors such as rubber gloves and technology.
Sector focus. Consumer sector may see continued interest, supported by government cash handouts and the reduction of RON95 prices, which could boost consumer’s disposable income. We also 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.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI charged sharply higher and formed a bullish engulfing candle as the key index advanced above the SMA50 level. 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)
Tan Sri Liew Kee Sin, executive chairman of Eco World Development Group Bhd, disposed of 100 million shares — representing a 3.36% stake — over two days, for an estimated RM190 million.
CapitaLand Malaysia Trust raised RM250 million via a private placement of 409.8 million new units at 61 sen each, representing a 6.9% discount to the market price.
UOA Real Estate Investment Trust reported an 8.9% increase in net rental income to RM17.96 million in 2QFY2025, driven by improved occupancies. It declared a higher interim distribution of 3.03 sen per unit, up from 2.9 sen.
AME Real Estate Investment Trust posted an 11.5% rise in net property income to RM12.74 million in 1QFY2026, driven by new acquisitions and higher rental renewals.
Infomina Bhd posted its first quarterly loss since listing, with a RM3.14 million net loss in 4QFY2025 due to a one-off RM10 million provision for doubtful debts.
IHH Healthcare Bhd is consolidating its India hospital operations by integrating Fortis Healthcare Ltd and Gleneagles Healthcare India Pvt Ltd.
TT Vision Holdings Bhd signed a 60-year lease agreement with Penang Development Corporation for a 3.6-acre plot in Bayan Lepas Industrial Park, valued at RM25.1 million.
Evergreen Max Cash Capital Bhd secured RM40 million in funding through the issuance of Islamic redeemable convertible preference shares (RCPS-i) to DPK Private Equity Sdn Bhd.
HI Mobility Bhd denied media claims of salary reductions for its cross-border bus drivers, stating all payments were made in full, in line with employment contracts and statutory regulations.
Sentoria Group Bhd has reached a settlement with former CEO Datuk Loh Yuen Tuck in the Industrial Court.
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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 |