Malaysia Market Review: The FBM KLCI (+0.8%) traded higher today, lifted by strong buying interest in heavyweight counters, mirroring the positive momentum from Wall Street overnight. The lower liners were mixed, while the Utilities sector (+0.9%) emerged as the top performer among the sectors.
Global Markets Review: Wall Street slipped on Tuesday, pressured by declines in technology stocks as investors took a breather to digest the latest round of corporate earnings. In contrast, European markets charged ahead, brushing off President Trump's threat to impose new tariffs on semiconductors and chips as early as next week. Across Asia, equities extended gains for a second straight session, lifted by hopes for a Fed rate cut in September. However, Indian markets underperformed due to renewed US tariff threats over its imports of Russian oil.
Market Outlook: We expect the FBM KLCI index to stay in a consolidation phase as investors evaluate the latest round of corporate earnings this week. In the near term, market direction will likely depend on whether the US extends its tariff pause on Chinese imports beyond the 12 August deadline. A continuation of the pause could support global risk sentiment and benefit Malaysia’s export-driven sectors, particularly in the E&E and technology supply chains. On the other hand, failure to extend the suspension may reignite concerns over global trade tensions, weaken investor confidence, and prompt a pullback in cyclical and externally exposed counters. For now, focus will shift to a series of upcoming US corporate earnings and EU retail sales data due later today.
Sector focus. We advocate a defensive investment stance amid ongoing market uncertainty, with a focus on domestically driven, policy-supported sectors such as construction, renewable energy, utilities, and telecommunications. 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 formed a bullish candle, closing above the SMA50 level yesterday. 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)
Hartalega Holdings Bhd’s net profit for the first quarter ended June 30, 2025 (1QFY2026) fell 60.1% year-on-year (y-o-y) to RM12.61 million from RM31.93 million in 1QFY2025, hit by weaker prices and lower volume as well as reduced export receipts.
Lotte Chemical Titan Holding Bhd’s net loss for the quarter ended June 30, 2025 (2QFY2025) narrowed to RM173.09 million, versus RM248.89 million a year earlier, on the back of lower distribution and administration expenses and a one-off insurance claim.
Frontken Corp Bhd’s net profit for 2QFY2025 came in largely flat y-o-y at RM33.49 million versus RM33.33 million a year earlier, as currency loss offset a rise in revenue.
CBH Engineering Holding Bhd, through its subsidiary CBH Engineering Sdn Bhd, has accepted a contract worth RM194.7 million to supply a 275kV consumer substation for a proposed data centre in Selangor.
Infomina Bhd’s 99.95%-owned unit Infomina Philippines Inc has sued the Bank of Philippine Islands (BPI) for 1.65 billion Philippine pesos (RM133 million) over the alleged invalid termination of a 2021 software purchase and maintenance agreement.
Wawasan Dengkil Holdings Bhd said it will hold a 70% stake in a joint venture (JV) with Terengganu-based Twin Hi-Technologies Sdn Bhd for its RM44.76 million job for the Silica Project, a fibre optic infrastructure initiative in southern Peninsular Malaysia the consortium had won in early July.
KJTS Group Bhd has secured a three-year contract valued at RM12.99 million to provide facility management services at Marlborough College Malaysia in Johor.
AIZO Group Bhd, formerly known as Minetech Resources Bhd, has re-entered the property development sector through a JV with Lestari Astana Sdn Bhd (LASB).
XOX Technology Bhd, formerly known as M3 Technologies (Asia) Bhd, has appointed Mohd Effendi Mat Aris as its new CEO, effective immediately.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.213466 | 4.244897 |
EUR | 4.946298 | 4.953651 |
CNY | 0.592866 | 0.593738 |
HKD | 0.540491 | 0.544550 |
SGD | 3.282193 | 3.306905 |