Malaysia Market Review: The FBM KLCI gained (+0.88%) as bargain hunting emerged, while investor sentiment was supported by BNM’s decision to keep the OPR unchanged at 2.75%, reinforcing expectations of a supportive domestic monetary policy backdrop. Market breadth was marginally positive as 572 advancers outpaced 512 decliners. Sector-wise, Industrial Products (+1.42%), Telecommunications & Media (+0.94%), and Technology (+0.92%) led gains, while Energy (-0.21%), Consumer (-0.16%) and REIT (-0.07%) were the main laggards.
Global Markets. Wall Street closed lower on Thursday, with the Dow (-1.61%), Nasdaq (-0.26%) and S&P 500 (-0.56%) closing lower as oil prices surged amid escalating tensions with Iran. The spike in energy prices has renewed concerns that higher fuel costs could reignite inflationary pressures in the U.S. (CNBC). Meanwhile, crude oil prices climbed above USD80 per barrel, marking their highest level since July 2024, after Iran reportedly struck an oil tanker with a missile, intensifying fears of potential supply disruptions (BBC). In Europe, the STOXX 600 (-1.29%) erased earlier gains to close lower, as most regional bourses and sectors except media ended the session in negative territory (CNBC). Asian equities, however, closed broadly higher, led by gains in the Nikkei 225 (+1.90%), Hang Seng (+0.28%), and Shanghai Composite (+0.64%).
Market Outlook. Earlier hopes of a de-escalation faded after Iran warned that Washington would “bitterly regret” the sinking of an Iranian warship off Sri Lanka. The conflict has entered its sixth day, with bombing intensifying, while Iran vowed to retaliate following the U.S. strike on a ship far from the main battle zone. Against this backdrop, markets are likely to remain cautious in the near term as investors monitor evolving geopolitical risks. Volatility may stay elevated as participants assess the potential implications for global energy supply and inflation. Nevertheless, any signs of diplomatic de-escalation could help stabilise sentiment and support a gradual recovery in risk assets.
Sector focus. Pivot towards energy and export-oriented sectors amid heightened geopolitical risks and crude price volatility. USD-linked exporters may benefit from ringgit weakness, while banking and REITs remain attractive for their resilient earnings visibility and stable dividend yields
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI continues to hold above its key uptrend support, with the index staging a rebound after briefly testing the lower bound of the rising trend channel. This suggests that the broader bullish structure remains intact for now. Nevertheless, near-term momentum remains soft, as reflected by the negative MACD reading and subdued RSI levels. As long as the index sustains above the 1,685–1,690 support zone, the prevailing uptrend is likely to remain intact. A decisive break below this level would weaken the technical structure and may signal a deeper corrective phase.
Company News (source: various)
NexG Bhd saw a tussle erupt at its boardroom following the emergence of Datuk Ishak Ismail’s Raya Aviation Holdings as its largest shareholder. (TheEdge)
British American Tobacco (Malaysia) Bhd announced that its managing director Nedal Salem will be concluding his tenure on Aug 1 after leading the company for four and a half years. (TheEdge)
Paramount Corp Bhd is aiming for higher property sales this year and is confident that its margins will withstand cost pressures amid Middle East tensions. (TheEdge)
Sunview Group Bhd unit has secured a RM289.71 million fixed contract sum to carry out engineering, procurement, construction and commissioning (EPCC) work for a solar photovoltaic power plant in Bintulu, Sarawak. (TheEdge)
Magma Group Bhd plans to acquire the LUMA Hotel in Kota Kinabalu for RM60.9 million in a cash-and-shares deal, to expand its hotel portfolio. (TheEdge)
InNature Bhd has secured a deal to exclusively distribute products of French natural cosmetics and skin care brand Yves Rocher in Singapore. (TheEdge)
EPB Group Bhd, which debuted on the ACE Market in August 2024, has proposed to transfer its listing to the Main Market of Bursa Malaysia. (TheEdge)
Ireka Corp Bhd is set to be delisted from the Main Market of Bursa Malaysia on March 10. (TheEdge)
Genetec Technology Bhd co-founder Aaron Chen Khai Voon has emerged as a substantial shareholder in Sunzen Group Bhd with a 8.51% stake after acquiring an additional 4.3% stake. (TheEdge)
Poh Huat Resources Holdings Bhd said a substantial shareholder has put forward a proposal for at least 50% of fees received by independent non-executive directors to be paid in the form of the company’s shares purchased from the open market. (TheEdge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.932397 | 3.958139 |
| EUR | 4.583468 | 4.586119 |
| CNY | 0.572032 | 0.572355 |
| HKD | 0.502650 | 0.505949 |
| SGD | 3.080534 | 3.100920 |