Market Review & Outlook
Malaysia Market Review: The FBM KLCI (-0.44%) extended its decline on Monday, closing at 1,615.19 pts as sentiment turned risk-off amid renewed US–China trade tensions. Market breadth weakened, with 396 gainers against 798 losers, while lower liners also ended broadly negative. Across sectors, Healthcare (+1.13%) led gainers on continued interest in glove counters, whereas Technology (-0.85%) and Financials (-0.88%) were the main laggards.
Global Markets Review: Wall Street rebounded on Monday, with the S&P 500 (+1.56%), Nasdaq (+2.21%), and Dow Jones (+1.29%) all posting robust gains. The rally was led by Broadcom and other chipmakers, after President Donald Trump adopted a more conciliatory tone on US–China trade tensions, easing investor concerns and restoring market confidence. Brent crude also rebounded as markets reacted positively to the easing trade rhetoric. In Europe, major indices including the STOXX 600 (+0.44%), UK’s FTSE 100 (+0.16%), and Germany’s DAX (+0.55%) recovered from last week’s sell-off. Meanwhile, Asian markets traded broadly lower earlier in the day, pressured by renewed US threats of 100% tariffs on Chinese exports and a resurgence of trade-war fears, particularly weighing on China and Hong Kong bourses.
Market Outlook. We expect the FBM KLCI to rebound today as investor sentiment improves, driven by easing trade tensions between the world’s two largest economies and tracking Wall Street’s overnight rally. Optimism is further supported by President Trump’s diplomatic engagement with Egypt to discuss post-war developments in Gaza, which has helped ease geopolitical concerns in the Middle East. Nonetheless, market volatility is likely to persist until the conclusion of trade talks between the US and China. With the US 3Q earnings season underway, investors will be closely monitoring corporate results for signs of margin resilience amid lingering trade uncertainty. Meanwhile, Fed Chair Powell’s upcoming speech remains in focus for potential cues on the near-term monetary policy outlook.
Sector focus. We maintain a positive outlook on selected Power Ancillary and Renewable Energy stocks, supported by accelerating data centre investments and strong policy initiatives that continue to drive growth within the power segment. Buying interest may also spill over into the technology sector, mirroring the recovery seen in the Nasdaq.
FBMKLCI Technical Outlook
Technical Commentary:
The FBM KLCI closed lower yesterday, forming a bullish marubozu candle, indicating renewed buying interest near the support zone. Indicators were mixed, with the MACD Line trading below the Signal Line, while the RSI floated above 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.
Company News (source: various)
Genting Bhd plans to privatise and delist Genting Malaysia Bhd via a RM6.7 billion buyout, offering RM2.35 per share — a 10% premium to its last traded price.
Malakoff Corp Bhd has signed a reservation agreement with Mitsubishi Power for two M701JAC gas turbines for a planned 1,400MW gas-fired plant in southern Peninsular Malaysia.
HeiTech Padu Bhd has accepted a revised RM1.05 billion government contract for the National Integrated Immigration System (NIISe), up from RM892.2 million.
Rohas Tecnic Bhd has secured a RM28.67 million contract from Tenaga Nasional for 275kV bulk supply works in Johor.
Paragon Globe Bhd is acquiring 11.84 hectares of Johor land for RM11.48 million from its major shareholders via Common Development (M) Sdn Bhd.
Omesti Bhd, via its 49%-owned subsidiary Formis Network Services, has secured a RM30.31 million, 36-month contract from the Ministry of Home Affairs.
Citaglobal Bhd, through its property arm, has launched D’Marina Bayu Phase 2B in Kuantan, featuring 120 solar-ready double-storey homes equipped with smart systems and fibre-to-home connectivity.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.212398 | 4.245900 |
EUR | 4.900605 | 4.905568 |
CNY | 0.591953 | 0.592544 |
HKD | 0.541967 | 0.545762 |
SGD | 3.246560 | 3.269477 |