Market Review & Outlook
Malaysia Market Review: The FBM KLCI continued its weakness on Tuesday, retreating 0.4% as market participants remain cautious ahead of the approaching 1 August deadline for Malaysia to close trade deal with the US. Investors are also closely monitoring the outcomes of the ongoing US-China trade talks and a busy week of key US economic data. Among the sectors, Industrial (+1.3%) and Energy (+0.4%) led the gains, while Healthcare (-1.0%) and Plantation (-0.9%) sectors were the main decliners.
Global Markets Review: Wall Street closed lower on Tuesday after Monday’s record highs, as investors turned cautious ahead of the Federal Reserve’s policy decision. In contrast, European markets closed higher, buoyed by a series of positive earnings announcements from regional companies. Asia-Pacific markets showed mixed performances as investors remained focused on the progress of US-China trade talks and the impending expiration of the global tariffs truce on 1 August.
Market Outlook: The local stock market is likely to mirror global sentiment with a defensive bias, as investors await clarity on trade policies, including the ongoing US-China trade negotiations and the 1 August expiry of the global tariff truce. Additionally, potential tariffs on pharmaceuticals and semiconductors remain a key downside risk. That said, an upward revision in the IMF’s global economic growth forecast may help cushion market sentiment. Investors are advised to be selective, prioritising fundamentally strong companies with more domestic exposure while exercising caution on export-dependent stocks given prevailing external uncertainties. Key events to watch for include the tabling of Malaysia’s 13MP on Thursday and the US Fed’s FOMC meeting decision late tonight.
Sector focus. We maintain a preference for the Technology, Utilities, Consumer, and Construction sectors this week, anticipating that these sectors will be core focus areas highlighted in the upcoming 13MP. The Energy sector may continue to attract interest supported by rising oil prices, particularly as former US President Trump intensifies pressure around the truce with Russia.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI failed to hold on to early gains and ended the last trading session in the red to close above SMA50 level. Indicators remained 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)
Trading in FGV Holdings Bhd will be suspended on August 15 as the Federal Land Development Authority (Felda) surpasses the 90% shareholding threshold to privatise the company.
Paramount Corp Bhd plans to acquire a 28% stake in the Singapore Exchange-listed Envictus International Holdings Ltd — operator of Texas Chicken and San Francisco Coffee — for S$38.33 million (RM126.32 million).
Zetrix AI Bhd has confirmed its exit from foreign worker permit renewal services following the expiry of its contract announced in July 2023.
Bursa Malaysia Bhd reported a 29.07% year-on-year drop in 2QFY2025 net profit to RM57.06 million, driven by a 22% decline in securities market revenue.
IGB Real Estate Investment Trust reported a 9.5% year-on-year increase in net property income (NPI) to RM119.86 million for 2QFY2025, supported by higher rental income and a 6.8% rise in revenue to RM160.09 million.
Dufu Technology Corp Bhd’s 2QFY2025 net profit plunged 66.8% y-o-y to RM2.80 million, hit by RM4.6 million in forex losses and rising costs.
Jati Tinggi Group Bhd has secured a RM31.58 million subcontract from Pintar Gembira Sdn Bhd for 11kV underground cable works in Selangor and the South Zone.
Focus Point Holdings Bhd expects a RM300,000 monthly rental cost increase due to the expanded sales and service tax covering rental.
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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 |