Market Review & Outlook
Malaysia Market Review: The FBM KLCI rose 0.33% on Tuesday, sustained buying in selected heavyweights, despite cautious sentiment in regional markets. In contrast, lower liners ended mixed. Sector-wise, energy (+1.6%) led the gainers, while technology (-0.46%) posted the steepest decline of the day.
Global Markets Review: Wall Street closed lower, with the S&P 500 (-0.59%) and the Nasdaq (-1.46%), while the Dow marginal higher (+0.02%). The trading session underscored sharp sectoral divergence: industrial and retail sectors held steady, while tech indices sharply retraced. Market participants are now focused on this week’s retail earnings and the upcoming speech by Fed Chair Jerome Powell at Jackson Hole particularly amid rising expectations of rate cuts and heightened bond market volatility. Meanwhile, European shares closed at a five‑month high as investors assessed the prospects of peace in Ukraine following Washington talks between U.S., Ukrainian, and European leaders. Asian markets closed in the red, with Japan’s Nikkei 225 (-0.38%) as investors took profits after the index hit a record high on Monday. South Korea’s Kospi (-0.81%), and China’s Shanghai Composite edged (-0.02%).
Market Outlook: Global sentiment remains fragile, as evidenced by the mixed performance on Wall Street and a renewed but cautious optimism. Domestically, investor sentiment in Malaysia has turned constructive, buoyed by buying interest in heavyweights and sustained institutional inflows, even as regional markets tread cautiously. This tempered optimism is partially underpinned by hopes for a Ukraine peace breakthrough. Meanwhile, markets are bracing for the release of the Fed’s July minutes on Wednesday and Chair Powell’s address at the Jackson Hole summit on Friday, both of which will be critical for policy clarity amid persistent rate-cut expectations and heightened bond-market volatility
Sector focus. We remain positive on 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: FBM KLCI picked up further momentum as it attempts to test the immediate resistance at 1,600. 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)
Sunway Construction Group Bhd said the company and its subsidiaries have been spared from an ongoing anti-graft probe targeting one of its employees.
Cypark Resources Bhd has secured RM1.3 billion in Islamic financing facilities from MBSB Bank Bhd to refinance its established renewable energy assets in solar and waste-to-energy projects.
Silver Ridge Holdings Bhd’s plan to build six data centres in Cyberjaya has collapsed after its joint venture partner, Selangor Industrial Corporation Sdn Bhd (SIC), a Perbadanan Kemajuan Negeri Selangor (PKNS) unit, withdrew from the deal.
KNM Group Bhd has proposed a regularisation plan to exit its Practice Note 17 (PN17) status. The regularisation plan includes selling Deutsche KNM GmbH (which owns crown jewel Borsig GmbH) for €270 million (RM1.3 billion), cutting its share capital to RM275.97 million to erase accumulated losses and combining every four shares into one.
Pestec International Bhd has triggered PN17 status because its shareholders’ equity dropped to 50% or less of its issued share capital, based on its audited financial results for March 31, 2025 (FY2025).
Far East Holdings Bhd’s net profit for the second quarter ended June 30, 2025 (2QFY2025) slipped 3% to RM49.99 million from RM51.35 million a year earlier, due to higher operating expenses.
Teo Seng Capital Bhd’s net profit for 2QFY2025 jumped nearly 60% y-o-y to RM42.1 million from RM26.4 million, largely thanks to government subsidies for eggs to maintain price control.
SAM Engineering & Equipment (M) Bhd’s net profit for the first quarter ended June 30, 2025 (1QFY2026) rose 60.33% to RM16.2 million from RM10.1 million a year earlier, driven by higher sales from its equipment and aerospace segments.
SMRT Holdings Bhd’s net profit for the fourth quarter ended June 30, 2025 (4QFY2025) jumped 28.5% y-o-y to RM7.16 million from RM5.56 million in 4QFY2024, due to a sharp reduction in administrative expenses, higher margins from its recurring income business, and Philippines operations turning fully profitable.
Star Media Group Bhd slipped into the red for 2QFY2025 with a net loss of RM231,000 against a net profit of RM7.49 million in 2QFY2024.
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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 |