Opening Daily Highlight
Local
All Eyes on OPR
Thu, 04-Sep-2025 07:30 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI rose 0.1% on Wednesday to close at 1,578.5, marking its second consecutive gain, supported by buying in consumer products & services as well as telecommunications and media heavyweights. Market breadth was positive, with 618 advancers against 397 decliners. Sector-wise, Technology (+1.7%), Energy (+1.5%), and Industrial Products (+1.3%) led the gains, while Telecommunications & Media (-0.5%) emerged as the main laggard.

 

Global Markets Review: Wall Street steadied on Wednesday, with the S&P 500 rising 0.5% and the Nasdaq up 1.0%, while the Dow edged 0.1% lower. Gains in Alphabet (after a favourable federal court ruling in its antitrust case) helped offset weakness in blue chips. Sentiment also improved as bond yields eased following weaker-than-expected US job openings data, with markets now pricing in nearly a 100% probability of a 25bps Fed rate cut in September. In Europe, equities closed higher as bond-market volatility subsided. In Asia, most markets finished lower: the Nikkei dropped 0.9% amid political uncertainty surrounding the prime minister’s future, the Shanghai Composite lost 1.2% on geopolitical tensions and mixed economic signals, while the Hang Seng fell 0.6% as technology and property stocks declined.

 

Market Outlook. We expect the local bourse to remain cautious, mirroring the mixed performance on Wall Street. The latest JOLTS report showed job openings falling to multi-year lows, underscoring a softening jobs market and heightening expectations for Fed easing. The recent rebound among small-cap counters may stall as traders lock in profits. That said, sentiment is not entirely negative, with foreign funds turning net buyers for the first time in a week, only the second time since July. Market attention will now turn to the upcoming Nonfarm Payrolls (5 Sept) and CPI release (11 Sept) for clearer guidance on the Fed’s policy trajectory. Domestically, trading is likely to remain sideways with a negative bias amid reduced liquidity in the shortened week, with BNM’s OPR decision today standing as the key local catalyst. If rates are maintained, the ringgit may strengthen, potentially spurring further foreign fund inflows.

 

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 bullish candle, closing slightly higher than yesterday. 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)

Malakoff Corp Bhd and Solarvest Holdings Bhd (80:20) will develop a 470MWac solar farm in Perak. Sunview Group Bhd and Cypark Resources Bhd (51:49) won a 99.99MW plant in Negeri Sembilan. Samaiden Group Bhd and JBB Builders target 99.99MW in Johor. YTL Power International Bhd was shortlisted for 100MW in Kelantan, while Tenaga Nasional Bhd is expected to build a floating solar project.

 

Dagang NeXchange Bhd gained a one-year extension (Sept 2025-Aug 2026) to operate the National Single Window, with a possible further renewal.

 

PETRONAS is pushing Asia’s energy transition through partnerships and innovation.

 

PPB Group Bhd faces up to RM600m worst-case hit if associate Wilmar loses its palm oil permit appeal in Indonesia, though management expects a better outcome.

 

Tropicana Corp Bhd redeemed RM100m sukuk, after RM123.5m in June 2025, continuing its RM1.5bn debt-cutting plan aided by the RM680m sale of Tropicana Gardens Mall.

 

Cape EMS Bhd partnered Shanghai Sermatec to assemble and manage BESS in Johor for the ASEAN market.

 

Magni-Tech Industries Bhd’s 1QFY2026 net profit fell 20% YoY to RM35.6m on softer sales and forex losses; dividend cut to 3.5 sen.

 

Inta Bina Group Bhd won a RM212.3m condo job from Sime Darby Property Bhd, lifting 2025 contract wins above RM700m.

 

Luxchem Corporation Bhd is buying six acres of Klang industrial land for RM40.6m from Sime Darby Property, with future plans under review.

 

Hextar Global Bhd is selling 10ha of durian plantation in Raub for RM13.8m after poor yields.

 

KJTS Group Bhd plans a special issue of up to 102.05m shares (12.5%) to Bumiputera investors, potentially raising RM145.1m to meet Main Market transfer requirements.

Sentiment: Positive
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.211471 4.242991
EUR 4.925671 4.928468
CNY 0.591411 0.591748
HKD 0.539992 0.543582
SGD 3.269964 3.291587