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Tue, 02-Sep-2025 08:02 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI slipped 0.8% on Friday to close at 1,575.1, as investors locked in profits ahead of the long weekend and the release of US PCE inflation data. Market breadth was negative, with decliners outpacing advancers 704 to 324. Sector-wise, weakness was broad-based, with the exception of Transportation & Logistics (+0.1%). The biggest laggards were Construction (-1.5%), Property (-1.0%), and Utilities (-0.9%).

 

Global Markets Review: Wall Street was closed on Monday for the Labour Day holiday. European equities gained, led by aerospace and defence stocks after reports of stronger European security commitments to Ukraine. In Asia, markets were mixed: the Shanghai Composite (+0.5%) advanced on stronger manufacturing data and continued AI optimism, the Hang Seng (+2.2%) jumped on Alibaba’s near 20% rally after bumper results, while the Nikkei 225 slipped (-1.2%) as chip-related stocks retreated on profit-taking, reversing earlier tech-led gains.

 

Market Outlook. We expect the FBM KLCI to trade with a slight negative bias today as investors remain guarded ahead of key US data releases. While the July PCE inflation report signalled easing price pressures and CME FedWatch assigns an 89.6% probability to a September rate cut, inflation remains above the Fed’s 2% target, leaving room for a more measured policy stance. Investor attention will turn to the US Nonfarm Payrolls report on 5 Sep and the CPI release on 11 Sep for further confirmation, keeping markets cautious in the near term. Other key data to take note of are the slew of PMI releases for US, China, EU. Geopolitically, sentiment was also influenced by reports that India has offered to remove tariffs on US goods, though details remain unclear. Domestic sentiment is likely to stay defensive until greater clarity emerges from upcoming US data and Fed policy signals mid-month. On Thursday, all eyes will be on the BNM OPR release.

 

Sector focus. We maintain a positive outlook on the Utilities and Renewable Energy sector, underpinned by domestic reforms and supportive policy measures that are expected to drive sustained growth in the power segment.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a bearish candle last Friday, closing above the MA20 level. Indicators turned mix, with the MACD Line ending the day slightly below the Signal Line, while the RSI floated above 50. Immediate resistance is located at 1,610. Support is envisaged at around 1,550.

 

Company News (source: various)

Gamuda Bhd engineering arm won a RM2.1bn contract from Eco World’s unit to build hyperscale data centres in Selangor, starting 3Q2025 and completing 3Q2027.

 

NexG Bhd secured a six-year RM1.7bn passport supply contract with the Home Ministry, running from June 2026 to May 2032 on a pay-per-use basis.

 

CIMB Group Holdings Bhd 2Q2025 net profit fell 3.8% yoy to RM1.9bn as weaker net interest income offset higher non-interest income. Declared 19.75 sen dividend.

 

Telekom Malaysia Bhd 2Q2025 net profit rose 1.7% yoy to RM403.0m despite a 4.7% revenue drop to RM2.8bn, supported by cost savings. Declared 12.5 sen dividend.

 

Hibiscus Petroleum Bhd 4QFY2025 net profit dropped to RM74.6m from RM108.7m, revenue down 14.7% to RM629.5m. Maintained payout with 9.0 sen total dividend for FY2025.

 

Ekovest Bhd narrowed 4QFY2025 loss to RM60.5m from RM64.9m, with revenue down 25.8% to RM201.6m. No dividend.

 

Berjaya Corp Bhd widened 4QFY2025 net loss to RM207.2m from RM152.5m on asset impairments, revenue slipped 4.0% to RM2.4bn.

 

Sunway Bhd will list healthcare arm SHH by early 2026 after a 1-for-9 share split, with SHH shares to be distributed to Sunway shareholders.

 

Ahmad Zaki Resources Bhd needs RM300.0m to complete EKVE Section 2, with Bank Pembangunan covering half and seeking government support for the balance.

 

Crescendo Corporation Bhd is selling 52.5 acres of industrial land in Johor for RM263.2m, expecting a RM109.0m gain.

 

Keyfield International Bhd is buying the workboat Carimin Acacia for RM76.0m, while Carimin records a RM4.6m gain and saves RM10.0-12.0m in costs.

 

Symphony Life Bhd saw the resignation of auditor EY and CFO Wong Mei Sin, effective Aug 31, 2025.

 

KomarkCorp Bhd filed for leave to appeal against a ruling that The Edge did not defame it in a 2021 penny stock article.

 

Lagenda Properties Bhd sold a 7.6% stake in Northern Solar, cutting its holding to 4.9% from 12.5%, raising RM21.6m.

Sentiment: Positive
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Market Mover
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