Market Review & Outlook
Malaysia Market Review: The FBM KLCI (+0.3%) traded higher yesterday, supported by improving signals from trade negotiations. Sentiment was lifted by the US decision to extend its 90-day tariff truce with China until 10 Nov. Lower liners also ended higher in line with the broader market. Sector-wise, technology (+1.2%) led gains, while construction (-0.9%) was the worst performer.
Global Markets Review: Wall Street closed higher after softer-than-expected US inflation data, with the S&P 500 (+1.1%) and Nasdaq (+1.4%) both hitting fresh record highs. The tame inflation report bolstered expectations that the Federal Reserve could cut interest rates next month. In Europe, the Stoxx 600 rose 0.2% on optimism over the tariff truce extension and a potential Fed rate cut, though gains were capped by weakness in heavyweight tech names. Asian markets mostly advanced on the US-China truce news, with Japan’s Nikkei 225 (+2.2%) touching a record high on robust tech stock gains, while South Korea’s Kospi (-0.5%) slipped on profit-taking after recent rallies. Overall, global risk appetite strengthened.
Market Outlook: The FBM KLCI is likely to extend its upward trajectory, supported by Wall Street’s rally on softer US inflation data, which reinforced the prospect of a Fed rate cut next month. Stronger global risk appetite provides a favourable backdrop for the local bourse. Investors will be watching Thursday’s US PPI and Friday’s US retail sales releases for further cues on inflation and consumer strength in the world’s largest economy. Domestically, corporate earnings announcements may drive sector rotations.
Sector focus. We continue to favour selective accumulation in domestic-oriented power ancillary and renewable energy plays, which are poised to benefit from structural growth drivers such as data centre expansion and the energy transition—trends that remain resilient despite global trade headwinds. Meanwhile, the technology sector may attract buying interest, tracking the Nasdaq’s overnight gains.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI extended its advance with another bullish candle, moving further above the SMA200 and approaching the 1,580-resistance level. Indicators remained positive, with the MACD Line ending the day above the Signal Line, while the RSI floated above 50. Immediate resistance is located at 1,580, followed by 1,600. Support is envisaged at around 1,540.
Company News (source: various)
Sunway REIT’s 2QFY2025 net property income rose 19.8% y-o-y to RM154.9m on contributions from new assets and completed enhancements, while revenue grew 20.4% to RM211.4m, with a 5.68 sen distribution per unit payable on Sept 10.
UMS Integration Ltd’s 2QFY2025 net profit rose 10.1% y-o-y to S$10.26m on higher demand for semiconductor equipment components, while revenue grew 20.4% to S$67.35m as gains in the semiconductor segment offset weaker aerospace and others sales, with a second interim dividend of one Singapore cent declared.
Malaysia Smelting Corp Bhd’s 2QFY2025 net profit fell 16.6% y-o-y to RM13.95m on lower tin prices and sales volume, while revenue dropped 7.8% to RM378.96m, with a 4.0 sen interim dividend payable on Sept 9.
YTL Power International Bhd’s unit YTL AI Labs Sdn Bhd launched Ilmu, Malaysia’s first fully homegrown large language model, which understands Bahasa Melayu, Manglish, and regional dialects across text, voice, and vision, as part of its broader AI investments including a 500MW green data centre in Johor and an Nvidia-powered AI supercomputer.
Thong Guan Industries Bhd announced that Raja Muda of Kedah Tengku Sarafudin Badlishah Sultan Sallehuddin will step down as independent non-executive chairman on Aug 25, marking the end of his nine-year tenure on the board.
MGB Bhd secured an RM185.99m contract to develop serviced apartments in Iskandar Puteri, Johor, comprising 405 units in a 32-storey tower with podium parking and facilities (Phase 1) and 397 units in a 31-storey tower (Phase 2).
NationGate Holdings Bhd said the Employees Provident Fund reduced its stake below 5% after selling 3.75 million shares on Aug 8, cutting its holding to 85.64 million shares or 4.909%.
Classita Holdings Bhd’s unit Caely (M) Sdn Bhd has sued Koperasi Peserta-Peserta Felcra Malaysia Bhd to recover RM9.47m in unpaid sums for a RM69.04m housing project in Perak, completed on Oct 3, 2022.
Carlsberg Brewery Malaysia Bhd’s 2QFY2025 net profit rose 3.2% y-o-y to RM81.93m on higher contributions from its Sri Lankan associate and lower taxes, despite a 3.4% drop in revenue to RM490.17m, with a 20 sen dividend declared. The Group will raise beer prices slightly on Sept 1, 2025, by a single-digit percentage to protect profits amid rising costs and weak demand, with sales volume expected to remain flat this year.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.202015 | 4.235318 |
EUR | 4.910409 | 4.915416 |
CNY | 0.591633 | 0.592086 |
HKD | 0.539313 | 0.543090 |
SGD | 3.271821 | 3.294958 |