Market Review & Outlook
Malaysia Market Review: The FBM KLCI continued its weakness on Friday, retreating 0.3% amid a moderation in regional sentiment. Sector wise, transportation and logistics (+0.72%) topped the gains, while Plantation (-1.02%) was the worst performer despite robust earnings results among plantation players.
Global Markets Review: Wall Street ended mixed on Friday as a rise in July’s retail sales data pared expectations of Federal Reserve rate cut this year. In Europe, stock markets closed flat ahead of a high-stakes meeting between US President Donald Trump and Russian President Vladimir Putin over the war in Ukraine. Asian markets were mixed, with Japan’s Nikkei 225 rose to a record high close after the country’s second quarter GDP (+0.3%) outpace forecasts despite tariff headwinds. The Hang Seng Index fell 0.98%, while the Kospi Index ended flat (+0.04%).
Market Outlook: The Malaysian tech sector is likely to open weaker following Trump’s renewed Section 232 tariff push, with Trump signalling semiconductor levies could reach as high as 300%. While some downside may already be priced in, elevated uncertainty could delay new investments and capacity expansion in Malaysia’s backend hub, with clarity hinging on the scope of exemptions. The FBM KLCI is expected to stay cautious, mirroring Wall Street’s mixed performance. Domestically, the index is likely to consolidate within a narrow range, with corporate earnings as the key near-term driver.
Sector focus. We expect the Technology sector to come under pressure amid reports of a potential 300% US tariff on semiconductor imports. In contrast, Utilities and Renewable Energy players may attract selective bargain hunting, supported by structural growth catalysts such as data centre expansion and the ongoing energy transition.
FBMKLCI Technical Outlook
Technical Commentary: FBM KLCI continued its retracement after rejecting the 1,600 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)
CelcomDigi Bhd, Maxis Bhd and YTL Power International Bhd provided additional shareholder advances of RM116.67 million each to Digital Nasional Bhd (DNB) on Friday, to support the state-owned 5G network wholesaler’s operations and working capital needs, as the country transitions to a dual 5G network model.
After taking full control of its struggling US unit Empire Resorts Inc, Genting Malaysia Bhd is launching a major restructuring with a RM2.2 billion asset sale, land purchase and full bond repayment to address earnings pressure.
Vantris Energy Bhd, formerly Sapura Energy, has signed a deal with a Ministry of Finance (MOF)-owned firm for an up to RM1.1 billion cash injection to pay its Malaysian vendors.
IJM Corporation Bhd, via its wholly owned subsidiary IJM Construction Sdn Bhd, has secured a RM1.4 billion contract to build a large-scale data centre in Johor Bahru, its biggest data centre project to date.
Affin Bank Bhd’s net profit rose over 21% in the second quarter from a year earlier, thanks to stronger interest and non-interest income.
Heineken Malaysia Bhd saw its net profit for the second quarter ended June 30, 2025 (2QFY2025) fall 8.93%, weighed down by slower sales and higher costs from ongoing investments.
SDS Group Bhd is acquiring factories, production lines and related assets from Mamee Bakery Sdn Bhd in Plentong, Johor for RM28 million as part of its expansion.
Pantech Global Bhd has bought a parcel of industrial land in Klang, Selangor, for RM29 million in a bid to fast-track its expansion plans, while scrapping its earlier land acquisition earmarked under its initial public offering (IPO) exercise
S P Setia Bhd on Friday announced the appointment of its chief operating officer, Datuk Zaini Yusoff, as the company’s new president and chief executive officer.
Lim Seong Hai Capital Bhd said that the operations at the Kuala Lumpur Tower will continue without interruption, despite the appeal filed by its former operator Menara Kuala Lumpur Sdn Bhd, and its parent Hydroshoppe Sdn Bhd, against the High Court ruling last month.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.209019 | 4.241387 |
EUR | 4.930101 | 4.933938 |
CNY | 0.592333 | 0.592792 |
HKD | 0.540178 | 0.543866 |
SGD | 3.276713 | 3.298990 |