Market Review & Outlook
Malaysia Market Review: The FBM KLCI (-0.4%) ended last week softer as sentiment weakened, with lower-liners leading the decline. The FBM Small Cap slipped 0.93% and the FBM ACE fell 1.75%, while market breadth was negative at 812 losers vs 338 gainers. Technology (-1.96%), Healthcare (-1.28%) and Industrial Products (-0.90%) were the key laggards. Foreign investors turned net sellers, whereas retailers and local institutions were net buyers.
Global Markets Review: Wall Street recovered from early losses to end mixed on Friday. The Nasdaq inched up 0.13%, snapping a three-day losing streak as investors rotated back into major tech names, while the S&P 500 was nearly flat (-0.05%) and the Dow fell 0.65%. Sentiment remained cautious ahead of the Federal Reserve’s upcoming rate decision, with uncertainty over whether key US economic data would still be released following the end of the country’s longest government shutdown, potentially leaving October jobs and inflation reports unpublished. Asian markets broadly weakened, with the Shanghai Composite and Shenzhen Index down 0.97% and 1.93%, respectively, while Japan’s Nikkei 225 slid 1.77%.
Market Outlook. Malaysian equities are likely to stay range-bound amid external uncertainty, particularly from the US. As year-end nears, domestic funds may turn more defensive, supporting large caps while pressuring mid- and small-caps. In the US, President Donald Trump’s rollback of tariffs on over 200 food items to ease inflationary pressure may help revive expectations for a rate cut, though market odds for a December move have already dropped below 50%. Key events this week include ADP Employment Change, Nvidia’s 3Q25 results, US FOMC minutes and initial jobless claims. With the US government reopened, investors will also watch for delayed releases such as the September jobs report on Thursday (20 Nov). Global trade tensions are also easing, with Treasury Secretary Scott Bessent signalling potential rare earths deal with China by Thanksgiving. Domestically, attention will focus on trade balance, inflation data and the start of earnings season.
Sector focus. We prefer domestic-centric and defensive sectors, particularly consumer, power ancillary, and renewable energy names. These segments offer stronger earnings visibility, supported by government policies that promote cleaner energy transition and the expansion of data centre infrastructure. Key heavyweight sectors such as financials may also attract interest as investors lean toward a risk-off stance heading into year-end.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI ended last trading session lower with a bearish candle as buying momentum remained weak. Indicators remained positive, with the MACD Line trading above the Signal Line, while the RSI stays above 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.
Company News (source: various)
Malaysia Marine and Heavy Engineering Holdings Bhd reported an 85.1% surge in net profit for 3QFY2025, supported by better project finalisation in its heavy engineering segment, even as group revenue more than halved.
CSC Steel Holdings Bhd posted its highest quarterly net profit in three years, as lower raw material costs and a stronger ringgit helped offset weaker revenue caused by lower global steel prices.
Crescendo Corp Bhd is divesting another parcel of land in the state for RM200.88 million and has granted the purchaser the right to buy an adjoining parcel worth RM249.07 million.
Tropicana Corp Bhd has issued a RM300 million tranche under its 2024 Islamic medium-term note programme to fund its township projects and support expansion next year.
Ahmad Zaki Sdn Bhd (AZSB), a wholly-owned subsidiary of AZRB Bhd, has received two winding-up petitions over alleged unpaid monies. Separately, AZRB also dropped its plan to raise about RM14.7 million through a private placement originally intended to fund working capital needs.
HI Mobility Bhd is venturing into commercial vehicle manufacturing and assembly with its proposed acquisition of Acacia Motor Services Sdn Bhd and Handal BCM Sdn Bhd for RM82.52 million through an all-shares deal.
APB Resources Bhd announced the resignation of its executive director Soon Boon Fei, less than three months after his appointment.
Erdasan Group Bhd has thrown its weight behind former MD Choong Lee Aun and ex-chief financial officer Yong Man Chai, who are facing charges of causing losses to the company, calling them victims of actions by former executive director Mak Siew Wei.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.133826 | 4.166633 |
| EUR | 4.811981 | 4.816870 |
| CNY | 0.583469 | 0.584053 |
| HKD | 0.531997 | 0.535726 |
| SGD | 3.176644 | 3.198993 |