Malaysia Market Review: The FBM KLCI rose 0.3% on Monday, closing above the psychological 1,600 level, supported by positive regional sentiment following Wall Street’s rally last Friday. In contrast, lower liners closed mix. Sector-wise, the Technology (+3.2%) and Finance (+0.5%) sectors led the gainers, while the Healthcare (-0.8%) and Industrial Products (-0.8%) sectors were the main laggards.
Global Markets Review: Wall Street closed lower on Monday, with the S&P 500 (-0.4%), Nasdaq (-0.2%), and Dow (-0.8%) declining. Market sentiment weakened ahead of the PCE release and nonfarm payrolls, as Powell’s caution on rate cuts amid a softening labour market and slowing economy raised uncertainty. In Europe, markets also retreated as investors digested corporate setbacks and rising political risks in France. In Asia, however, markets rallied on Monday as investors cheered Fed Chair Powell’s dovish remarks, which reinforced expectations of a September rate cut. Japan’s Nikkei 225 rose 0.4%, Hong Kong’s Hang Seng jumped 1.9%, while the Shanghai Composite advanced 1.6%, with sentiment further buoyed by renewed interest in Chinese tech and fintech names.
Market Outlook: Global markets are displaying cautious optimism, underpinned by the Fed’s signal of a likely 25bp rate cut in September, with futures implying an 83% probability of such a move according to CME FedWatch. This has eased concerns over borrowing costs and supported risk appetite, particularly in equities and emerging markets. Nvidia’s upcoming earnings on Wednesday after market close will be closely tracked as a key barometer of AI-driven growth and semiconductor demand, while Friday’s US PCE inflation print will provide further insight into the Fed’s policy effectiveness. At the same time, geopolitical tensions in Eastern Europe and the Middle East could influence commodity prices and market stability. Domestically, corporate earnings will be key to gauging the sustainability of the current market rally. Overall, markets are expected to remain selective, favouring defensive positions amid ongoing uncertainties.
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 surged past the 1,600 resistance trendline, setting a new high. 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 1,640. Support is envisaged at around 1,576.
Company News (source: various)
AEON Co (M) Bhd’s net profit for the second quarter ended June 30, 2025 (2QFY2025) fell 55.9% year-on-year (y-o-y) to RM12.27 million compared with RM27.85 million in 2QFY2024, due to weaker retail performance amid the absence of major festive celebrations.
Avillion Bhd saw David Low Yi Ngo, son of Indonesian coal billionaire Low Tuck Kwong of PT Bayan Resources Tbk, buy a 9% stake in the cash-strapped company for an estimated RM9.25 million at seven sen per share — higher than the recent private placement price of four sen per share.
Bank Islam Malaysia Bhd’s net profit for 2QFY2025 declined 8.3% y-o-y to RM126.69 million from RM138.08 million in 2QFY2024, primarily due to compressions of net fund-based income margin, higher impairment provisions, operating overheads and financing costs.
Elridge Energy Holdings Bhd’s net profit for 2QFY2025 rose 6.2% y-o-y to RM12.43 million from RM11.71 million in 2QFY2024, thanks to higher other operating income.
Gamuda Bhd and Sarawak property developer Naim Holdings Bhd’s joint venture (JV) has clinched a RM1.13 billion contract to develop the Limbang section of the Northern Coastal Highway in Sarawak.
GDB Holdings Bhd’s net profit for 2QFY2025 jumped more than fivefold y-o-y to a record high of RM21.75 million from RM4.16 million in 2QFY2024, underpinned by contributions from ongoing projects and lower other expenses.
Haily Group Bhd said it has secured a RM50.08 million subcontract for the construction and completion of a residential development in Gelang Patah, Johor.
Hong Leong Industries Bhd’s net profit for the fourth quarter ended June 30, 2025 (4QFY2025) increased 19.2% to RM117.16 million from RM98.33 million in 4QFY2024, underpinned by higher motorcycle sales and lower raw material costs from better currency exchange.
Kerjaya Prospek Group Bhd’s net profit for 2QFY2025 rose 46.8% y-o-y to a record high of RM54.44 million from RM37.08 million in 2QFY2024, lifted by stronger contributions from its property development division and higher topline from its other businesses.
MN Holdings Bhd’s net profit for 4QFY2025 jumped near 2.5-fold y-o-y to RM12.06 million from RM4.96 million in 4QFY2024, driven by accelerated progress in major construction projects within its substation engineering segment.
Petronas Gas Bhd’s net profit for 2QFY2025 dipped 2.3% y-o-y to RM450.19 million from RM468.99 million in 2QFY2024, as revenue fell and expenses rose.
SD Guthrie Bhd has appointed its current group chief operating officer Mohd Haris Mohd Arshad as its new deputy group managing director, effective Sept 1.
Southern Cable Group Bhd’s net profit for 2QFY2025 more than doubled to RM31.64 million — the highest since its listing in October 2020 — from RM14.43 million in 2QFY2024.
Pecca Group Bhd saw its fourth-quarter net profit slip 7.2% y-o-y to RM13.52 million from RM14.57 million, due to temporary factory closures by customers during Hari Raya Aidiladha and a normalisation in sales volume, as well as increased finance costs, which offset improvement in gross margins.
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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 |