Market Review & Outlook
Malaysia Market Review: The FBM KLCI ended Thursday’s session sharply lower, dropping 0.7% from the previous session to close at its lowest level since mid-July. This decline was primarily driven by sustained foreign fund outflows from the local equity market, as investors remained cautious ahead of the US tariff negotiation deadline. Despite the weak sentiment among blue chips, broader market sentiment improved, with lower liners finishing in positive territory. This resilience was supported by the tabling of the 13MP and reports that the US may announce a lower tariff rate on Malaysia soon. Sector-wise, Technology (+2.2%) and Healthcare (+1.5%) led the gainers, buoyed by optimism over the hopes of a favourable US tariff outcome, while Industrial (-1.1%) and Financial (-0.8%) sectors led the decliners.
Global Markets Review: Wall Street retreated overnight, despite strong earnings reports from names like Meta and Microsoft, as concerns persisted over the US Federal Reserve’s hawkish stance, especially in light of firm job market data and the latest PCE price index. In Europe, markets also finished in negative territory following a slew of earnings announcements. Across Asia Pacific, most stock markets ended lower after the Bank of Japan kept its interest rate unchanged but hinted at possible tightening in the future.
Market Outlook: Local market is expected to trade with a positive bias as investors digest the official tariff rate confirmation of 19% just announced, which is more favourable than the initially feared 25%. The tariff outcome positions Malaysia favourably relative to some ASEAN exporters such as the Philippines and Indonesia, which face tariffs around 19%, and Vietnam at 20%. This lower tariff rate, coupled with the policy momentum from the recently tabled 13MP, could provide renewed support to the market.
Sector focus. Export-driven sectors with significant US exposure, notably Technology and Gloves, will be in sharp focus given the tariff news and potential impact on export competitiveness. Additionally, sectors such as Construction, and Utilities are likely to attract increased interest, bolstered by initiatives outlined in the 13MP unveiled yesterday.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI continued its bearish momentum to close below all major moving averages. Indicators remained negative with the MACD Line ending the day below the Signal Line, while the RSI concluded the last trading session below 50. Immediate resistance is located at 1,550, followed by 1,580. Support is envisaged around 1,511.
Company News (source: various)
Tenaga Nasional Bhd faces a fresh RM609 million tax bill for 2023 after the Federal Court ruled it cannot claim reinvestment allowances.
CAB Cakaran Corp Bhd plans to acquire Cargill Feed Sdn Bhd for RM231 million in cash to strengthen its poultry business by producing its own feed.
ITMAX System Bhd has secured a RM145 million, 20-year contract from the Johor Bahru City Council to deploy and maintain smart traffic lights.
Chin Hin Group Bhd is selling its steel wire unit Metex Steel Sdn Bhd for RM70 million in cash, realising a RM6.1 million gain.
Unisem (M) Bhd’s 2QFY2025 net profit fell 45.5% year-on-year to RM9.13 million due to lower margins and higher operating costs.
Pharmaniaga Bhd has completed its rights issue and private placement, key components of its regularisation plan to exit PN17 status by 1Q2026.
UMS Integration Ltd will debut on Bursa Malaysia on August 1 with a reference price of RM5, derived from its SGX closing price and exchange rate.
Capital A Bhd and AirAsia X Bhd have extended the cut-off date for their aviation restructuring deal for a fourth time to Aug 31, 2025, with potential for further extension by mutual agreement.
DRB-Hicom Bhd has acquired the remaining 30% stake in Scott & English (Malaysia) Sdn Bhd for RM20 million, achieving full ownership.
Perdana Petroleum Bhd has secured an RM11.6 million accommodation work barge contract from major shareholder Dayang Enterprise Holdings Bhd.
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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 |