Market Review & Outlook
Malaysia Market Review: The FBM KLCI (+1.2%) extended its winning streak to a seventh consecutive session, buoyed by US rate cut hopes. Gains were driven by sustained buying in heavyweight banking counters. The lower liners also closed higher in tandem with the broader market. By sector, technology (+2.8%) led the gains, while industrial products (-1.0%) was the worst performer.
Global Markets Review: Wall Street closed higher as investors continued to anticipate a potential rate cut by the Federal Reserve, driven by US July inflation data that came in softer-than-expected. The Dow gained 1.0%, the S&P 500 added 0.3%, while the Nasdaq inched up 0.1%. Both S&P 500 and Nasdaq closed at record highs for the second straight day. In Europe, equities rose to a near two-week high, led by heavyweight healthcare and technology stocks. Asian markets mostly advanced, with Japan’s Nikkei 225 hitting a record high and extending its winning streak to a sixth consecutive day. Hang Seng Index soared 2.6%, as prospects of a Fed rate cut next month lifted investor sentiment.
Market Outlook: Despite persistent foreign outflows, the FBM KLCI extended its winning streak to seven sessions, buoyed by the US’s 19% tariff announcement on 1 August, which positions Malaysia more competitively against other exporting nations. The local bourse is expected to maintain its upward momentum in the near term, tracking global optimism over a potential Fed rate cut. Attention now shifts to key US economic data releases, with tonight’s Producer Price Index (PPI) and Friday’s retail sales figures set to provide fresh insights on inflation trends and consumer strength. Domestically, corporate earnings announcements could spur shifts in sector positioning.
Sector focus. We continue to favour selective accumulation in domestic-focused power ancillary and renewable energy counters, supported by structural growth catalysts including data centre expansion and the ongoing energy transition, which are expected to remain resilient despite global trade challenges. With improving risk appetite, the technology sector may also attract renewed interest, mirroring the Nasdaq’s strong overnight performance.
FBMKLCI Technical Outlook
Technical Commentary: FBM KLCI extended its seven-day winning streak, with a solid marubozu candle decisively breaking above 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 1,600, followed by 1,640. Support is envisaged at around 1,550.
Company News (source: various)
Petronas Chemicals Group Bhd posted its largest 2QFY2025 net loss of RM1.08bn, from RM777m last year, as revenue fell 16% to RM6.44bn (from RM7.73bn) due to weaker prices, lower sales, reduced joint operation revenue, and currency effects, and declared a first interim dividend of 3.0 sen per share.
VSTECS Bhd posted a 2QFY2025 net profit of RM20.17m, up 2.2% y-o-y (from RM15.25m), on 31.1% higher revenue of RM818.9m from RM624.4m driven by growth across its ICT distribution, enterprise systems, and ICT services segments.
Eonmetall Group Bhd posted a 2QFY2025 net loss of RM4.11m, reversing from RM702k last year, as higher raw material costs, lower margins, and increased factory overheads outweighed a 15.5% y-o-y revenue rise to RM41.23m (from RM35.69m) on contributions from its machinery, equipment, and steel trading segments.
Mr DIY Group (M) Bhd posted a 2QFY2025 net profit of RM158.6m, up 2.2% y-o-y (from RM155.2m), as revenue rose 1.5% y-o-y to RM1.214bn (from RM1.2bn) with 31 new stores opened, and declared an interim dividend of 1.5 sen per share.
RCE Capital Bhd posted a 1QFY2026 net profit of RM25.99m, down 14.3% y-o-y from RM30.32m due to higher impairment allowances, while revenue inched up to RM79.79m (from RM79.12m) on higher fee income from increased disbursement volumes.
Master-Pack Bhd posted a 2QFY2025 net profit of RM1.6 million, down 74% y-o-y from RM6.2m, as revenue fell 31.16% y-o-y to RM27.8m (from RM40.39m) due to lower margins from price cuts and a RM130k foreign exchange loss.
Iris Corporation Bhd lost its appeal against the High Court’s dismissal of its lawsuit against nine former board members over UK share subscription losses, and was ordered to pay RM40k in legal costs to each of the five sets of solicitors representing the defendants.
Avangaad Bhd, formerly EA Technique (M) Bhd, is selling its FSO vessel FOIS Nautica Tembikai to MTC Energy Sdn Bhd for US$10.5m (RM44.5m), generating an immediate gain of RM29.4m over its RM15.05m book value.
Yinson Holdings Bhd has commenced operations of its largest FPSO vessel, Agogo FPSO, under a 15-year lease-and-operate charter worth over US$5bn (RM21.04bn) with Azule Energy, after receiving the provisional operational readiness certificate on Aug 12
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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 |