Opening Daily Highlight
Mixed
All Eyes on 13MP
Thu, 31-Jul-2025 07:41 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI ended Wednesday’s session on a cautious note, inching up just 0.04% to close at its intraday high after spending most of the day in negative territory. Investor sentiment remained subdued amid heightened volatility expectations ahead of the US tariff negotiation deadline and the Federal Open Market Committee (FOMC) decision. Among sectors, the Industrial sector led gains with a 0.9% rise, while the Healthcare sector was the largest decliner, falling 1.0%.

 

Global Markets Review: Wall Street closed mostly lower overnight, with the S&P 500 and Dow Jones falling modestly, while the Nasdaq posted a marginal 0.1% gain. The Federal Reserve held interest rates steady, with Chair Jerome Powell stating it was "too soon" to guarantee a rate cut in September, which dampened hopes of an imminent easing. European markets closed mixed as investors assessed corporate earnings, and Asia-Pacific markets were mixed amid continuing uncertainties in trade and economic outlooks.

 

Market Outlook: Local markets are expected to trade cautiously, with sentiment still weighed down by external uncertainties. Recent trade developments, including the 15% tariff arrangement between South Korea and the US, as well as the imposition of 25% tariffs on India, have heightened concerns over Malaysia’s own ability to secure a reduced tariff rate. Meanwhile, the conclusion of US–China trade talks without a resolution further amplified uncertainty. The tabling of the 13th Malaysia Plan (13MP) later today is anticipated to provide some policy clarity and could act as a key catalyst to improve sentiment and help define sectoral focus moving forward.

 

Sector focus. We continue to advocate a focus on defensive, domestically driven sectors such as Utilities and Construction to seek stability amid external uncertainties. The Technology sector remains preferred, as it is expected to be among the key beneficiaries of the forthcoming 13MP. Additionally, we continue to see merit in selectively accumulating domestic-focused power infrastructure and solar players, which stand to benefit from structural growth drivers such as data centre expansion and the ongoing energy transition—trends we expect to remain resilient despite global trade uncertainties.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI recovered from earlier losses to form a hammer candlestick to close up marginally after three straight days of losses. Indicators turned negative with the MACD Line finishing below the Signal Line, while the RSI ended below 50. Immediate resistance is located at 1,550, followed by 1,580. Support is envisaged around 1,511.

 

Company News (source: various)

Dialog Group Bhd’s associate Pengerang Terminals (Two) Sdn Bhd (PT2SB) is investing US$330 million (RM1.4 billion) to expand its Johor storage terminal, backed by a 25-year agreement with Petronas, Eni SpA and Euglena Co Ltd. 

 

Kwasa Land Sdn Bhd, a subsidiary of the Employees Provident Fund (EPF), has awarded LBS Bina Group Bhd development rights for an RM8.3 billion residential project in Kwasa Damansara.

 

Alliance Bank Malaysia Bhd expects its FY2026 net interest margin to remain within 2.4%-2.45%, despite a projected three-basis-point decline following Bank Negara Malaysia’s recent 25-basis-point rate cut. 

 

Destini Bhd expects double-digit earnings growth in FY2026, driven by expanded rail-MRO capabilities and its acquisition of Australia-based Trovon Group.

 

Steel Hawk Bhd has secured a scaffolding services contract from EPOMS Sdn Bhd for its operational sites.

 

Dayang Enterprise Holdings Bhd has secured a 130-day accommodation work barge contract from Petronas Carigali via its unit DESB Marine Services Sdn Bhd. 

 

Samaiden Group Bhd , Asia Poly Holdings Bhd and HeiTech Padu Bhd— have secured green energy projects under Malaysia’s Feed-in-Tariff programme. 

 

Paramount Corp Bhd will not pursue further food and beverage acquisitions following its S$38.33 million (RM126.14 million) purchase of a 28% stake in Envictus International.

 

Zetrix AI Bhd has received confirmation from the Ministry of Home Affairs that it may continue delivering immigration-related services under valid government agreements despite the termination of its direct contract.

Sentiment: Neutral
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
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