Market Review & Outlook
Malaysia Market Review: The FBM KLCI snapped a two-day winning streak last Friday, declining 0.4% as investors adopted a cautious stance ahead of Saturday’s planned protest and ongoing uncertainty over Malaysia’s efforts to negotiate lower US tariffs set to take effect on 1 August. Broader market sentiment remained weak, with lower liners also closing in negative territory, mirroring the performance of the broader market. Among the key sectors, Telecommunications (+1.0%), Energy (+0.2%), and Transport (+0.03%) were the only gainers, while Healthcare (-0.7%) was the day’s largest decliner.
Global Markets Review: Wall Street ended last Friday on a positive note, with the S&P 500 reaching a record high, buoyed by strong corporate earnings, particularly a better-than-expected result from Alphabet. European markets closed slightly lower, reflecting caution ahead of ongoing trade negotiations. In Asia, most key indices finished in the red, as investors braced for a pivotal week featuring the US President’s tariff deadline and upcoming Federal Reserve meetings.
Market Outlook: The stock market is expected to open on a slightly firmer note today, following news that the US and EU have reached a trade agreement, lowering tariffs to 15% for European exports to America. This development should help allay some concern over subdued global demand. Nevertheless, trading is likely to remain guarded, as persistent uncertainty surrounds Malaysia’s unresolved tariff negotiations with the US ahead of the looming 1 August deadline. On the domestic front, investors will closely monitor the tabling of the 13th Malaysia Plan (13MP) in Parliament, which is set to outline key reforms and fiscal measures for 2026–2030 that could shape select sector performances in the medium term. Globally, major economic events, including US GDP, labour market, inflation data, and the Federal Reserve’s interest rate decision, are expected to influence market direction later this week.
Sector focus. We anticipate renewed interest in the Technology sector today, riding on the momentum from the US-EU trade deal. We opine the semiconductor industry stands to benefit from policy initiatives expected within the 13MP, as the government seeks to cement the nation’s role in the global value chain. Investors are encouraged to remain selective, focusing on sectors positioned to benefit from both domestic reforms and improving external headwinds.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI pared earlier losses and took a pause from its recent recovery to close above SMA50 level. Indicators turned positive with the MACD Line finishing above 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)
Globetronics Technology Bhd on Friday defended its RM45.05 million acquisition in Mpire Global Bhd, saying the move aligns with its long-term transformation strategy and provides business synergistic to its existing business.t
Ecobuilt Holdings Bhd has secured a RM34.65 million contract to undertake the main building works for a high-rise serviced apartment project in Shah Alam, Selangor.
CTOS Digital Bhd said on Friday its net profit was down 17% in the second quarter from a year earlier, weighed down by higher depreciation and amortisation and operational costs.
Salcon Bhd executive deputy chairman Tan Sri Tee Tiam Lee has emerged as a new substantial shareholder in Eduspec Holdings Bhd after acquiring a 7.86% stake via a private placement.
Sapura Energy Bhd has secured contracts worth more than RM500 million to carry out offshore installation and subsea maintenance works in Thailand.
Tenaga Nasional Bhd has been slapped with another tax bill amounting to RM840.13 million for the Year of Assessment 2022.
Rhone Ma Holdings Bhd has secured a RM15.64 million contract to build a milk processing line at the Jemaluang Dairy Valley Complex in Mersing, Johor.
ETA Industries Sdn Bhd’s stake in Rex Industry Bhd rose to 55.04% on Friday at the close of its mandatory takeover offer for the remaining shares in the halal food canning group.
Ekovest Bhd and its major shareholder Tan Sri Lim Kang Hoo have mutually agreed to an extension to Aug 29 to finalise the proposed RM1.15 billion acquisition of Credence Resources Sdn Bhd.
Jentayu Sustainables Bhd said a 162-megawatt run-of-river hydroelectric project at Hulu Sungai Padas, Sipitang, Sabah remains on schedule despite the withdrawal of its partner from the project.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.252266 | 4.285870 |
EUR | 4.877194 | 4.882265 |
CNY | 0.592038 | 0.592649 |
HKD | 0.541750 | 0.545537 |
SGD | 3.279721 | 3.302705 |