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Earnings Season Winds Down, Focus Shifts to Rates
Fri, 29-Aug-2025 07:53 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI slipped 0.1% on Thursday, weighed by late selling as the results season winds down, with investors awaiting fresh catalysts. Lower liners also closed lower, with decliners outpacing advancers 596 to 480. Sector-wise, the Property (+0.8%), Finance (+0.5%) and Construction (+0.5%) sectors led the gainers, while the Technology (-1.3%), Healthcare (-1.3%), and Telecommunications & Media (-1%) sectors were the main laggards.

 

Global Markets Review: US equities extended gains on Thursday, with the S&P 500 (+0.3%) closing at another record alongside the Nasdaq (+0.5%) and Dow (+0.2%), supported by resilient economic data and Nvidia’s results, which reinforced the AI trade despite some earnings shortfalls. Markets also shrugged off concerns over Fed independence following President Trump’s attempt to remove Governor Lisa Cook. European equities slipped on healthcare weakness and tempered risk appetite post-Nvidia. In Asia, markets were mixed. Nikkei 225 (+0.7%) and Shanghai Composite (+1.1%) gained on Nvidia-led optimism, while the Hang Seng (-0.8%) retreated on intensified price wars in food delivery and EVs.

 

Market Outlook. The near-term driver for Wall Street remains the Fed’s policy path, with futures pricing an 86% probability of a September rate cut (CME FedWatch). Sentiment stays constructive after the Commerce Department reported 2Q GDP growth of 3.3% annualised, ahead of expectations, while easing jobless claims underscored labour-market resilience. The next key catalyst is the July PCE inflation print tonight, which could recalibrate rate expectations. Domestically, we expect FBM KLCI to trade sideways ahead of the US PCE release. A dovish Fed stance would be supportive of risk appetite and ease pressure on the ringgit, while sustained US growth momentum should benefit export-oriented 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: The FBM KLCI formed an inverted hammer yesterday, closing above the SMA50 level. Indicators were positive, with the MACD Line ending the day slightly 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)

Axiata Group Bhd flagged a possible delay in monetising its infrastructure assets, which includes its tower business edotco Group Sdn Bhd.

 

Bumi Armada Bhd’s net profit declined by 70% y-o-y to RM80.03 million in 2QFY2025 from RM265.96 million, following a steep cut in charter rates for its Armada Kraken floating production storage and offloading vessel. 

 

Capital A Bhd posted a net profit of RM1.45 billion in 2QFY2025, marking its second straight quarter in the black, lifted by a significant RM853.3 million foreign exchange (forex) gain. 

 

Genting Bhd’s net profit inch up 1.6% to RM243.55 million in 2QFY2025 from RM239.66 million a year earlier, driven by asset disposal proceeds, a turnaround at its joint ventures and associates and lower depreciation. 

 

Genting Malaysia Bhd reported a fivefold surge in net profit to RM416.75 million for 2QFY2025, up from RM82.24 million a year earlier, mainly due to RM184.6 million in foreign exchange gains from a stronger ringgit against the US dollar, as most of Genting Malaysia’s debts are in foreign currencies. 

 

Hap Seng Consolidated Bhd’s net profit declined 15.5% y-o-y to RM143.68 million in the 2QFY2025 from 170.13 million, weighed down by softer results in its plantation, credit financing, automotive and trading divisions. 

 

IJM Corp Bhd confirmed that it has submitted a proposal for Permodalan Nasional Bhd’s (PNB) highway assets. 

 

Inari Amertron Bhd saw its net profit drop 10% y-o-y to RM49.17 million, or 1.30 sen per share, in 4QFY2025 from RM54.68 million, or 1.45 sen per share, hit by lower volume loading across all of its businesses. 

 

IOI Corporation Bhd’s net profit rose 26% y-o-y to RM436.5 million in the fourth quarter ended June 30, 2025 (4QFY2025) from RM346.9 million, thanks to foreign exchange gains and higher palm oil prices.

 

KPJ Healthcare Bhd's net profit rose 8.14% y-o-y to RM82.06 million in 2QFY2025 from RM75.88 million, mainly due to higher patient visits.

 

Mah Sing Group Bhd's net profit rose 9.6% to RM66 million in 2QFY2025 from RM60.21 million a year earlier, as lower costs more than offset a slightly decreased revenue. 

 

MBM Resources Bhd's net profit rose 7.2% y-o-y to RM72.5 million in 2QFY2025 from RM67.64 million, driven by higher vehicle sales and production.

 

QL Resources Bhd said it has raised egg prices by five sen following the removal of government subsidies to protect its profit margins. 

 

RHB Bank Bhd’s net profit rose 11% y-o-y to RM803.5 million in 2QFY2025 from RM722.31 million, thanks to higher interest income and lower provisions. 

 

Tenaga Nasional Bhd's net profit slipped 19.84% to RM1.16 billion in 2QFY2025 from RM1.44 billion a year ago, due to a swing to cost pass-through over-recovery from domestic electricity sales. 

Sentiment: Negative
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