Market Review & Outlook
Malaysia Market Review: The FBM KLCI (+1.3%) surged overnight buoyed by the US decision to lower tariffs on Malaysian exports to 19% and the announcement of the 13th Malaysia Plan. Broader market sentiment was positive, lifting the lower liners, while the Construction sector (+3.1%) outperformed among the sectoral indices.
Global Markets Review: Wall Street saw a broad sell-off as weaker jobs growth and a fresh wave of US tariffs unsettled investors. Tech and financial stocks were among the hardest hit, dragging all three major indices into the red. July’s nonfarm payrolls rose by only 73,000, falling short of the consensus forecast of 100,000 and raising concerns over the health of the labour market. The downbeat sentiment spilled over globally, with European equities also retreating. In Asia, markets mostly declined amid renewed fears that escalating trade tensions could hamper global economic growth.
Market Outlook: As expected, the FBM KLCI advanced and subsequently charged towards the 1,540 level on Friday following the announcement of the 19% US tariffs. Looking ahead, we expect the local bourse to come under pressure, mirroring the overnight declines on Wall Street over the health of the US labour market. Meanwhile, the recovery among lower liners could pause as investors take the opportunity to lock in recent short-term profits. Attention will now turn to the upcoming US ISM Services PMI, which will offer fresh insights into the services sector, an essential component of US GDP.
Sector focus. We favour the renewable energy sector in light of the policy tailwinds and investment incentives under the 13MP, which targets 35% RE capacity by 2030 and supports new frameworks like CRESS and CREAM to accelerate project rollout. At the same time, we remain optimistic on the Construction sector, which stands to benefit from renewed interest driven by large-scale infrastructure initiatives, including public transport upgrades, flood mitigation, water projects, and improved connectivity in rural and East Malaysia.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a bullish candle to close above SMA50 level last Friday. Indicators turned mix with the MACD Line ending the day below the Signal Line, while the RSI floats above 50. Immediate resistance is located at 1,550, followed by 1,580. Support is envisaged around 1,511.
Company News (source: various)
RHB Bank Bhd on Friday signed new 20-year exclusive bancassurance and bancatakaful partnerships with Tokio Marine Life Insurance Malaysia Bhd and Syarikat Takaful Malaysia Keluarga Bhd.
Fraser & Neave Holdings Bhd saw its net profit fall by 30% to RM84.82 million in the third quarter ended June 30, 2025 (3QFY2025) from RM121.63 million a year ago, as sales slowed and its dairy farm continued to incur start-up losses.
Westports Holdings Bhd expects single-digit container volume growth this year, despite a 13.7% rise in second-quarter net profit, driven by companies rushing to ship goods ahead of the US tariffs.
Inari Amertron Bhd has partnered with China’s Sanan Optoelectronics Co Ltd to jointly acquire the entire stake in Lumileds Holding BV and its subsidiaries for an enterprise value of US$239 million (RM1.03 billion), marking a strategic expansion into the global light-emitting diode (LED) market.
Sarawak’s largest port operator Bintulu Port Holdings has received notices of assessment from the Inland Revenue Board (IRB) totalling RM44.22 million for the years of assessment 2020 to 2023.
Pestec International Bhd’s external auditor has expressed its unqualified audit opinion with a material uncertainty related to the group’s ability to continue as a going concern, stemming from its audited consolidated financial statements for the financial period ended March 31, 2025.
KNM Group Bhd, an oil and gas services provider, has finally secured a new buyer for its Italian subsidiary FBM Hudson Italiana SpA (FBMHI), following three failed attempts since the proposed disposal was first announced in May 2023.
ITMAX System Bhd’s 70%-owned unit, Selmax Sdn Bhd, has secured a 10-year contract from the Subang Jaya City Council (MBSJ) to manage parking in the city under the Selangor Intelligent Parking (SIP) system, with an option for a five-year extension.
TSA Group Bhd said it has been appointed to operate and distribute granite quarry products in Perak's Manjung district, marking the group's entry into the quarrying sector.
SkyGate Solutions Bhd, formerly known as Ewein Bhd, has entered into a joint venture with Singapore-based New Jin Hai Pte Ltd (NJH) to establish a high-precision manufacturing business in George Town, Penang.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.221850 | 4.250414 |
EUR | 4.896665 | 4.900581 |
CNY | 0.589762 | 0.590218 |
HKD | 0.537762 | 0.541398 |
SGD | 3.277327 | 3.299636 |