Opening Daily Highlight
Mixed
100% tariffs on semiconductor imports
Thu, 07-Aug-2025 07:59 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI (+0.2%) marked its second straight session of gains on Wednesday, underpinned by strength in selected banking heavyweights. In contrast, the lower liners ended the day in the red amid softer trading interest, while the Healthcare sector (-1.7%) was the worst performer among the broader sectoral indices.

 

Global Markets Review: Wall Street rallied broadly on Wednesday, with tech giants such as Apple, Amazon, and Tesla powering the gains. Apple led the gains, surging after a White House official confirmed that the company plans to invest an additional USD100bn in US domestic manufacturing. In contrast, European markets ended flat as investors digested mixed corporate earnings and escalating trade tensions. Pharmaceutical stocks came under pressure after Trump signalled that tariffs of up to 150% could be imposed on foreign made drugs within the next 18 months, potentially rising to 250% thereafter. Meanwhile, Asia-Pacific markets closed mixed, pressured by global trade uncertainties and soft US economic data.

 

Market Outlook: The modest advance in the FBM KLCI reflects underlying resilience as the index continues to consolidate within the 1,540–1,550 range, in line with prevailing cautious sentiment. That said, the local bourse may come under pressure today following an escalation in global trade tensions. US President Donald Trump announced that the US will impose 100% tariffs on certain semiconductor imports, a move likely to weigh on tech sentiment. Additionally, the White House confirmed the implementation of an extra 25% tariff on imports from India, effectively raising the total tariff rate to 50%. Separately, Kyodo News reported that the US is also planning to introduce an extra 15% tariff on all imports from Japan. Investors will turn their focus to upcoming key events including US weekly jobless claims, the Bank of England’s rate decision, and Malaysia’s industrial production data due later today.

 

Sector focus. We believe the technology sector may come under pressure following reports that the US intends to impose a 100% tariff on semiconductor imports. In contrast, bargain hunting may emerge in the Energy sector, supported by a rebound in crude oil prices. The anticipated implementation of US secondary sanctions on Russia later this week could further tighten global supply expectations and lend support to upstream O&G counters.

 

FBMKLCI Technical Outlook

 

Technical Commentary: The FBM KLCI formed a bullish candle, closing above the SMA50 level yesterday. Indicators turned positive, with the MACD Line ending the day above the Signal Line, while the RSI floated above 50. Immediate resistance is located at 1,550, followed by 1,580. Support is envisaged around 1,511.

 

Company News (source: various)

Pentamaster Corp Bhd’s net profit for the second quarter ended June 30, 2025 (2QFY2025) declined 41.7% year-on-year to RM11.61 million from RM19.9 million previously, dragged down by lower contribution from its factory automation segment and unfavourable foreign exchange losses.

 

Azam Jaya Bhd has secured a three-year contract from the Ministry of Transport for upgrading works for Sabah’s Tawau Airport. The RM120.9 million contract was awarded to Azam Jaya’s wholly owned unit Pembinaan Azam Jaya Sdn Bhd.

 

Pharmaniaga Bhd has completed its regularisation plan, with the completion of RM520 million capital reduction that trimmed the pharmaceutical group’s issued share capital to RM249.62 million, as well as wipe out its accumulated losses.

 

Exsim Hospitality Bhd has agreed with AmFIRST Real Estate Investment Trust (REIT) to manage a planned RM45 million refurbishment and rebranding of The Summit Hotel Subang USJ, and to lease the hotel for three years after the revamp.

 

Citaglobal Bhd saw the Sultan of Pahang, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, increasing his stake in the diversified group to 13.25% via an off-market acquisition of 3.52% or 15 million shares.

 

Magma Group Bhd's former executive chairman Datuk Seri Ismail @ Farouk Abdullah has ceased to be a substantial shareholder in the hotel management and property development company, following a 0.24% stake trim. 

 

PTT Synergy Bhd has forayed into the smart warehouse business with the launch of PTT Logistics Hub 1, a key move under its strategy to diversify earnings and reduce dependence on the construction sector.

 

Harvest Miracle Capital Bhd is formally diversifying into construction materials trading after successfully dipping its toes into the segment.

 

Saliran Group Bhd inked a memorandum of understanding (MOU) with China-based Maoming Port Group Co Ltd and Malaysia’s PCA Group Sdn Bhd to establish a framework for cooperation in the oil and gas (O&G) sector.

 

Sentiment: Positive
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