Malaysian Market Review: The FBM KLCI dropped 0.59% on Thursday, as cautious sentiment persisted amid lingering global uncertainties, partially offsetting earlier bargain hunting following easing geopolitical tensions. Market breadth was negative, with 453 advancers versus 634 decliners. Sector-wise, Healthcare (+2.86%), Energy (+1.98%) and Plantation (+0.82%) led gains, while Financial (-1.45%), Technology (-1.37%) and Consumer (-1.05%) were the main laggards.
Global Markets. Wall Street extended its rally overnight, with the Dow rising 0.58%, the S&P 500 gaining 0.62%, and the Nasdaq advancing 0.83%, as sentiment improved after Israeli Prime Minister Benjamin Netanyahu signalled a willingness to pursue direct talks with Lebanon, reinforcing hopes of broader regional de-escalation (CNBC). In Europe, the STOXX 600 slipped 0.15% as investors turned cautious over signs that the fragile U.S.–Iran truce may be coming under pressure (CNBC). Meanwhile, Brent crude briefly climbed toward USD99/bbl before paring gains to settle at USD95.92/bbl, as renewed optimism surrounding Israel-Lebanon negotiations eased immediate supply disruption concerns (Reuters). Asian markets retreated, with the Nikkei 225 (-0.73%), Kospi (-1.61%), and Shanghai Composite (-0.72%) declining, as investors engaged in profit-taking following the recent relief rally, while remaining cautious amid persistent geopolitical uncertainty
Market Outlook. Markets are expected to remain cautious and headline-driven, as the fragile U.S.–Iran ceasefire shows signs of strain amid renewed Middle East tensions. Israeli air strikes in southern Lebanon have continued, with Iran warning that the attacks are undermining negotiations ahead of U.S.–Iran talks in Pakistan, highlighting the risk of renewed escalation. At the same time, Trump criticised Iran for doing a “very poor job” allowing oil flows through the Strait of Hormuz and warned of stronger action if conditions are not met, reinforcing uncertainty surrounding global energy supply and the durability of the ceasefire. Meanwhile, shipping through the Strait of Hormuz remains limited, while attacks across parts of the Gulf have only recently eased, underscoring that geopolitical risks remain elevated despite ongoing diplomatic efforts. This keeps investors cautious, as any renewed disruption could tighten global energy supply and heighten market volatility. Against this backdrop, regional markets are expected to trade defensively, with investors closely monitoring Israel-Lebanon tensions, U.S.–Iran negotiations, and developments in the Strait of Hormuz.
Sector focus. We favour energy amid elevated geopolitical risks, while plantations may gain from firmer vegetable oil prices. Defensive sectors such as utilities, telecommunications, and selected banks remain attractive amid heightened volatility. We also remain positive on Malaysian semiconductor names, underpinned by continued investment in AI infrastructure, optical connectivity, advanced packaging and semiconductor back-end equipment.
Technical Commentary: Selling interest in the FBM KLCI continued after it failed to hold on to previous session’s gains and closed lower amid subdued trading interest on Thursday. Immediate downside risk now pivots to the next support at 1,665, where a break below this level would reinforce bearish momentum and indicate sustained downward pressure in the near term.
Company News
Shell Malaysia announced that it is working to stabilise fuel supply at its petrol stations following reports of outlets temporarily running out of fuel. (The Edge)
Puncak Niaga Holdings Bhd announced that its executive chairman Tan Sri Rozali Ismail will step down from the role effective June 30. (The Edge)
Australia-listed PRL Global Ltd has ceased to be a substantial shareholder in United Malacca Bhd after disposing of a 3.78% stake in the plantation company. (The Edge)
Main-Market bound Big Caring Group Bhd is ramping up its use of automation and artificial intelligence (AI) in its supply chain to support its expansion. (The Edge)
Velesto Energy Bhd made a slew of announcements on Thursday, including the resignation of non-independent and non-executive director Fadzihan Abbas Mohamed Ramlee. (The Edge)
Pertama Digital Bhd has submitted its proposed regularisation plan to the Securities Commission Malaysia (SC) after revising the terms for two key acquisitions. (The Edge)
Crescendo Corporation Bhd said it is selling 49.72 acres of freehold land in Kota Tinggi, Johor to Digital Edge Data Centers (Malaysia) Sdn Bhd for RM346.53 million in cash. (The Edge)
Arka Bhd has proposed selling its entire 40% stake in Enfrasys Solutions Sdn Bhd for RM43 million in cash. (The Edge)
Property group Ideal Capital Bhd has proposed to undertake a bonus issue of one billion shares on the basis of two new shares for every one share held. (The Edge)
Axteria Group Bhd has proposed acquiring an 80% interest in Niaga Sari Sdn Bhd (NSSB) for RM35 million in cash, as it aims to strengthen its construction capabilities and support property development activities. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.968333 | 3.995351 |
| EUR | 4.643853 | 4.652257 |
| CNY | 0.581887 | 0.582377 |
| HKD | 0.506224 | 0.510203 |
| SGD | 3.109463 | 3.134002 |