Opening Daily Highlight
Local
Global Markets Retreat
Wed, 03-Sep-2025 08:00 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI inched up 0.1% on Tuesday to close at 1,576.7, supported by late buying ahead of Bank Negara Malaysia’s policy decision. Market breadth was negative, with decliners leading advancers 730 to 342. Sector-wise, Transportation & Logistics (+0.3%), Finance (+0.2%), and REITs (+0.1%) were the only gainers, while Utilities (-1.1%), Technology (-0.8%) and Industrial Products (-0.5%) were the main laggards.

 

Global Markets Review: Wall Street retreated overnight, with the Dow down 0.6%, the S&P 500 off 0.7% and the Nasdaq lower by 0.8%, as investors braced for a volatile September ahead of key US jobs data. Nvidia slid 2.0% on AI chip supply concerns, while Treasury yields climbed toward 5.0%, pressuring equities, while gold hit fresh record highs on Fed rate-cut bets. In Europe, markets closed sharply lower as surging bond yields and political uncertainty weighed on sentiment. In Asia, trading was mixed. The Nikkei 225 (+0.3%) rose on exporter and tech strength aided by a weaker yen, though gains were capped by caution ahead of key US data. The Shanghai Composite (-0.5%) fell on profit-taking after recent highs, while the Hang Seng (-0.5%) slipped as tech and property counters retreated.

 

Market Outlook. We expect the local bourse to remain cautious, tracking the overnight weakness on Wall Street as rising bond yields weigh on global sentiment. Sentiment was further dampened by the ISM Manufacturing PMI, which registered 48.7 in August and marked a sixth consecutive month of contraction, underscoring the challenges facing US factories as they continue to grapple with the fallout from Trump-era tariffs. The recovery among lower liners may also pause as investors take the opportunity to lock in recent gains. Market focus will shift to upcoming US economic data, particularly the Nonfarm Payrolls report on 5 September and the CPI release on 11 September, for further clarity on the Fed’s rate path. Domestically, trading is likely to stay sideways with a negative bias given reduced liquidity in the shortened trading week, with Thursday’s BNM OPR decision set to be the key local catalyst.

 

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.

Technical Commentary: The FBM KLCI formed a dragonfly candle yesterday, closing slightly 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)

DBS Group Holdings Ltd plan to buy a stake in Alliance Bank Malaysia has stalled as regulatory approval to begin talks is still pending.

 

Kelington Group Bhd signed six framework agreements in Germany worth up to €50m (RM247m) for semiconductor hook-up services.

 

Southern Score Builders Bhd’s 51%-owned unit secured a RM102.7m subcontract for electrical works from a private client.

 

OSK Holdings Bhd is acquiring 14.45 acres in Rawang for RM58m, targeting a mixed development worth RM1.3bn.

 

99 Speed Mart Retail Holdings Bhd opened its first overseas store in Fuzhou, China, with expansion plans but no material impact on FY2025 earnings.

 

Oppstar Bhd partnered with Taiwan’s Inventec Corp to co-develop next-gen AI chips, with JV agreement expected within 90 days.

 

ITMAX System Bhd won a 10-year Selangor Intelligent Parking concession from Selayang Council, its third under the programme.

 

Northern Solar Holdings Bhd secured a RM20.5m contract to build a 5MW solar PV system with 10MWh battery storage in Pahang.

 

Malayan Banking Bhd (via Maybank Islamic) emerged as a 17.9% shareholder in Alam Maritim, lifting the group’s total stake to 19.2%.

 

APB Resources Bhd saw a management-led buyout with Strategic A Holdings taking 27.9% and Ong Kok Wah was appointed CEO.

Sentiment: Neutral
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.216494 4.249912
EUR 4.923595 4.928588
CNY 0.592163 0.592763
HKD 0.540426 0.544215
SGD 3.273679 3.296901