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Fri, 25-Jul-2025 07:43 am
by Research Team • Apex Research

Market Review & Outlook

 

Malaysia Market Review: The FBM KLCI climbed 0.7% on Thursday, marking a second straight day of gains supported by broad-based demand for blue-chip counters such as Consumer, Plantation and Banks following the government’s latest fiscal stimulus announcement. The Industrial Products sector rose 1.8% as petrochemical counters were supported by China’s “anti-involution” campaign. Lower liners failed to follow suit and ended in the red while foreign investors registered a second consecutive day of inflows.

 

Global Markets Review: US equity markets ended Thursday on a mixed note, with the S&P 500 and Nasdaq extending their record-setting run, while the Dow retreated as earnings pressure weighed on legacy sectors. Gains were led by continued investor enthusiasm for mega-cap tech and AI-driven companies, with Alphabet advancing following a strong 2Q earnings. Across the Atlantic, European indices mirrored the gains on Wall Street, buoyed by progress in trade negotiations with the US, a strong showing from corporate earnings, and ECB’s decision to hold interest rate steady as expected. Asian equities also advanced broadly. Japan’s Nikkei 225 surged 1.6%, leading gains after the announcement of the US-Japan trade deal, reducing auto tariffs from 25% to 15%. In contrast, Thailand lagged as renewed border tensions with Cambodia rattled investor sentiment.

 

Market Outlook: The recently announced fiscal stimulus package and positive development in regional tariff negotiations are expected to keep investor sentiment afloat as Malaysia targets lower tariff rate in trade talks with the US. Any positive development could trigger bargain-hunting interest in export-oriented sectors such as rubber gloves and technology. Globally, investor attention will turn to a wave of US corporate earnings, which are likely to offer insights into the impact of US tariffs.

 

Sector focus. The Consumer sector continue to attract interest, supported by government cash handouts and the reduction of RON95 prices, which are expected to boost disposable income. In contrast, petrochemical counters may see some profit taking pressure following underwhelming results from Dow Inc in the US, potentially signalling a softer 2Q results for local players.

 

Technical Commentary: The FBM KLCI extended its recovery phase as the key index extended its upward momentum to close above SMA50 level. Indicators turned into mix with the MACD Line hovering below the Signal Line, while the RSI stayed above 50. Immediate resistance is located at 1,550, followed by 1,580. Support is envisaged around 1,511.

 

Company News (source: various)

Nestlé (Malaysia) Bhd reported a 20% increase in 2QFY2025 net profit to RM112.11 million, supported by operational efficiency and a prudent pricing strategy.

 

Betamek Bhd posted a 10.48% rise in 1QFY2026 net profit to RM5.4 million, with revenue up 13.8% to RM56.9 million.

 

ViTrox Corp Bhd posted a flat net profit of RM28.13 million for 2QFY2025, despite a 33.4% revenue surge to RM183.04 million, due to a tripling in tax expenses following the expiry of its pioneer status.

 

KIP Real Estate Investment Trust posted a 24.4% rise in net property income to RM96.82 million for FY2025, driven by stronger lease income and contribution from newly acquired assets.

 

Luxchem Corp Bhd reported a 27.13% drop in 2QFY2025 net profit to RM8.89 million, as revenue fell 10.68% to RM187.74 million due to weaker performance in its trading and manufacturing segments.

 

Oriental Interest Bhd posted a record net profit of RM45.48 million for 3QFY2025, up 80.3% year-on-year, driven by record revenue of RM305.25 million, representing a 69.2% increase.

 

AYS Ventures Bhd said the voluntary takeover offer by its associate, 3HA Capital Pte Ltd, for all shares in Singapore-listed CosmoSteel Holdings Ltd has become unconditional, after securing 87.88% of shares as of July 23.

 

MMAG Holdings Bhd will acquire a Boeing 737-800 converted freighter for RM109.85 million, currently leased to its airfreight unit.

 

SkyWorld Development Bhd, in a joint venture with Perbadanan PR1MA Malaysia (PR1MA), has launched the RM192 million SkyAwani PRIMA Residences in Brickfields.

Sentiment: Neutral
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Market Mover
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EUR 4.946298 4.953651
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