Malaysia Market Review: The FBM KLCI gained 0.3% last Friday, closing the week on a positive note as sustained buying in blue-chip counters lifted sentiment. Lower liners also closed higher, in line with the broader market. Sector-wise, the Technology (+2.1%), Telecommunications & Media (+1.2%) and Industrial Products (+1.0%) sectors led the gainers, while the Healthcare (-0.4%) and Energy (-0.2%) sectors were the main laggards.
Global Markets Review: Wall Street closed higher last Friday, with the S&P 500 (+1.5%) and Nasdaq (+1.9%) advancing, while the Dow Jones Industrial Average jumped 1.9% to a record close. Sentiment was lifted after Fed Chair Jerome Powell struck a dovish tone, reinforcing expectations that the central bank could begin cutting rates as early as next month. In Europe, stocks also closed higher, supported by US rate cut optimism. Asian equities closed higher, fuelled by expectations of US rate cuts. Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index rose 0.1% and 0.9% respectively. Meanwhile, China’s Shanghai Composite Index surged 1.5% to a ten-year high, driven by strong momentum in AI and semiconductor stocks alongside optimism over supportive government policies.
Market Outlook: The Fed’s dovish tone at Jackson Hole has boosted global risk appetite, with expectations of lower US interest rates supporting equities and encouraging capital inflows into emerging markets, which could provide support for the Ringgit and sentiment in Malaysia’s growth-oriented sectors. At the same time, it reflects concern over slowing US growth, while renewed US tariff actions—most recently a Section 232 investigation on furniture imports—underscore risks to Malaysia’s exports. Markets are expected to rally today as investors react to the Fed’s dovish pivot. Looking ahead, focus this week will be on Nvidia’s earnings and the US PCE inflation report, both of which could shape near-term risk appetite. In this environment, we recommend a balanced strategy, combining selective exposure to export-oriented names with defensive and domestic-focused sectors.
Sector focus. We remain constructive on selective domestic construction, power ancillary and renewable energy counters, supported by structural tailwinds from accelerating data centre expansion and the ongoing energy transition. These secular themes should demonstrate resilience against prevailing global trade headwinds.
Technical Commentary: FBM KLCI advanced in another attempt to challenge the 1,600 resistance trendline. 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)
Ancom Nylex Bhd and its unit Rhodemark Development, which owns 42.41% in Nylex (Malaysia) Bhd, have had their proposal to take full control of the company through a selective capital reduction and repayment exercise rejected by shareholders.
CBH Engineering Holding Bhd has secured a RM52.8 million contract from a private firm, referred to as Company A, to construct an electrical supply system for a 132kV consumer landing station for a proposed data centre in Selangor.
IJM Corp Bhd said its unit New Pantai Expressway Sdn Bhd has signed a supplementary concession agreement with the government for the RM1.40 billion project to extend the New Pantai Expressway (NPE) by 15 kilometres and toll rate restructuring.
Kossan Rubber Industries Bhd’s net profit for 2QFY2025 was flat y-o-y at RM31. million, compared with RM31.3 million, despite a temporary production halt following a gas pipeline explosion in Putra Heights in April.
Malaysia Marine and Heavy Engineering Holdings Bhd’s net profit for 2QFY2025 fell 86.4% y-o-y to RM10.06 million from RM73.92 million, due to significantly lower contribution from the group's main revenue contributor, the heavy engineering segment.
Pekat Group Bhd’s net profit for 2QFY2025 surged 137.6% y-o-y to RM11.02 million from RM4.64 million, driven by growth across all business divisions.
Sime Darby Property Bhd said it is still in talks with authorities on the expansion of the sales and service tax that raised costs for developers.
SkyWorld Development Bhd’s net profit for 1QFY2026 fell 71.5% y-o-y to RM2.85 million from RM9.99 million, due to lower gross profit and an unrealised foreign exchange loss of RM2.3 million.
Sports Toto Bhd’s net profit for 4QFY2025 declined 40.3% y-o-y to RM40.35 million from RM67.59 million, amid weaker contributions from its UK automotive dealership and a sharp rise in investment-related expenses.
SWS Capital Bhd is exiting its furniture business as part of a broader business rationalisation and right-sizing exercise, with operations expected to cease by next month.
Velesto Energy Bhd’s net profit for 2QFY2025 fell nearly 20% y-o-y to RM50.44 million from RM62.81 million on lower asset utilisation, though all but one of its rigs are now on charter.
Zetrix AI Bhd’s net profit for 2QFY2025 jumped 20% y-o-y to RM199.15 million from RM165.42 million, underpinned by higher contributions from Web3 application service fees on its Zetrix blockchain platform, alongside proceeds from the sale of Zetrix tokens.
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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 |