Opening Daily Highlight
Mixed
Tentative Optimism Lifts Market Momentum
Tue, 19-Aug-2025 08:06 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI rose 0.55%, supported by sustained buying interest in index heavyweights, tracking the gains across regional markets. Investor sentiment was buoyed by signs of progress in US-Russia negotiations over a potential resolution to the war in Ukraine. In contrast, lower-liners were broadly unchanged. Sector-wise, construction (+1.4%) led the gainers, while transportation and logistics (-0.8%) emerged as the top laggard.

 

Global Markets Review: Wall Street ended little changed on Monday, with the S&P 500 (-0.1%) and Dow (-0.08%) edging lower, while the Nasdaq was marginally higher (+0.03%). Trading was muted as investors awaited major retail earnings for insights into US consumer strength, alongside Fed Chair Jerome Powell’s keynote at the Jackson Hole symposium on Friday for guidance on the policy outlook. In Europe, equities closed mixed as investors weighed corporate updates and a meeting between regional leaders and US President Donald Trump to discuss Ukraine. Asian markets were mixed, with Japan’s Nikkei 225 surging 0.77% to a record high as a weaker yen lifted automakers’ shares, while Kospi slid 1.5%. In China, the Shanghai Composite gained 0.85%.

 

Market Outlook: Investor sentiment has strengthened in recent sessions, as reflected by firmer trading volumes and broader market participation. Optimism is building ahead of potential peace talks, with President Zelenskyy and President Trump expressing openness to trilateral discussions with President Putin. This backdrop of cautious optimism, reinforced by supportive local positioning and expectations of improving global trade dynamics, is likely to sustain near-term momentum. Beyond geopolitics, focus will turn to the release of the Fed’s July meeting minutes on Wednesday and Fed Chair Powell’s address at the Jackson Hole summit on Friday, both of which may offer further clarity on the policy path. Notably, the July FOMC meeting recorded the highest level of dissent since 1993.

 

Sector focus. We continue to favour selective domestic power ancillary and renewable energy stocks, supported by long-term growth catalysts such as data centre expansion and the energy transition, which should continue to show resilience amid global trade challenges.

 

FBMKLCI Technical Outlook

Technical Commentary: Strength returned to the FBM KLCI after it halted its two-days losing streak to end the day in positive territory. 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’s net profit for the second quarter ended June 30, 2025 (2QFY2025) grew over 8% year-on-year (y-o-y) to RM438.94 million from RM406.02 million in 2QFY2024, mainly due to lower accounting charges and operating expenses.

 

AMMB Holdings Bhd’s net profit for the first quarter ended June 30, 2025 (1QFY2026) rose 3.2% y-o-y to RM516.18 million from RM500.2 million in 1QFY2025, on higher interest and non-interest income, partly offset by increased impairment charges.

 

LPI Capital Bhd’s net profit for 2QFY2025 rose 6.6% y-o-y to RM83.17 million from RM78 million in 2QFY2024, thanks largely to net fair value gains recognised during the quarter, in contrast to net fair value losses a year ago.

 

Ranhill Utilities Bhd’s net profit for the three months ended June 30, 2025, doubled quarter-on-quarter (q-o-q) to RM17.77 million from RM6.94 million in the immediate preceding quarter, thanks to its water business.

 

WCE Holdings Bhd recorded an 84% jump in earnings before interest, taxes, depreciation and amortisation (Ebitda) to RM33.4 million for 1QFY2025 compared to RM18.1 million a year earlier, thanks to higher toll collections.

 

MGB Bhd’s net profit for 2QFY2025 fell 21.59% y-o-y to RM11.91 million from RM15.19 million in 2QFY2024, as more projects were completed and delivered.

 

3REN Bhd’s net profit for 2QFY2025 jumped eight-fold q-o-q to RM4.48 million, its highest since its ACE Market debut last November, compared with RM545,000 in the immediately preceding quarter. 

 

FGV Holdings said the trading of its shares will be suspended, effective next Monday (Aug 25), following the Federal Land Development Authority’s (Felda) successful takeover bid.

 

Genting Plantations Bhd is planning to venture into the vegetable seeds business by partnering China-based Shouguang Vegetable Science and Technology Sdn Bhd (SVST).

 

Bursa Malaysia has reprimanded electronic manufacturing services provider PIE Industrial Bhd and fined two of its directors a total of RM150,000 for failing to immediately disclose material information on a major customer contract.

Sentiment: Neutral
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