Malaysian Market Review: The FBM KLCI rose 1.03% to 1,739 on Monday, supported by improved buying momentum at the start of May. Market breadth turned positive with 673 gainers against 498 decliners. Sector wise, Technology (+2.98%), Utilities (+1.66%) and Telecommunications & Media (+1.18%) led gains, while Consumer (-0.76%), Transportation & Logistics (-0.57%) and Energy (-0.35%) were the main laggards.
Global Markets: U.S. equities declined, with the Dow Jones Industrial Average (-1.13%), S&P 500 (-0.41%) and Nasdaq Composite (-0.19%) pressured by escalating Middle East tensions after Iran launched attacks on the United Arab Emirates and near the Strait of Hormuz. Crude surged, with Brent crude (+5.8%) and West Texas Intermediate crude (+4.4%), fuelling inflation concerns and triggering a broad risk-off move (Reuters). European equities also weakened, with the STOXX Europe 600 (-1%) amid geopolitical risks and renewed trade tensions. European automakers led losses after Donald Trump proposed a 25% tariff on EU vehicles, while the European Commission signalled potential countermeasures (CNBC). Asian markets were mixed in holiday-thinned trading, with the Hang Seng Index (+1.24%) and Jakarta Composite Index (+0.22%) higher, while key markets including Japan and China remained closed (Yahoo Finance).
Market Outlook. The near-term market outlook is expected to remain cautious and range-bound with a downside bias, as investors navigate escalating geopolitical tensions and a more restrictive policy backdrop. Heightened conflict involving Iran, including attacks on the United Arab Emirates and vessels near the Strait of Hormuz, has driven crude prices sharply higher, reinforcing inflationary pressures and weighing on risk sentiment. The policy environment has turned increasingly hawkish, with the Federal Reserve expected to maintain a higher-for-longer stance amid re-accelerating inflation, largely driven by elevated energy prices. Market expectations for rate cuts have been pushed further out; with rising risk of prolonged policy tightness should inflation remain sticky. Against this backdrop, global growth visibility remains fragile, as higher input costs and tighter financial conditions pressure consumption and corporate margins. The FBM KLCI is likely to trade defensively, with investor focus shifting toward earnings resilience, particularly on cost pass-through, margin sustainability and demand visibility.
Sector focus. We prefer defensives (Utilities, Telco) on stable earnings, while Tech is supported by AI momentum. Plantations offer only tactical support from higher oil. Transport faces margin pressure; Industrials and Healthcare likely range-bound.
Technical Commentary: The benchmark KLCI index broke out of its Symmetrical Triangle formation yesterday, suggesting further upside towards 1,777. However, a near-term pullback may occur today following the overnight weakness in US markets. Immediate support is seen at 1,722.
Company News
PETRONAS Gas Bhd plans to develop its third regasification terminal (RGT-3) in Lumut, Perak, using a floating storage and regasification unit (FSRU), the first of its kind in Malaysia, following a notification from the Ministry of Economy. (The Edge)
Mercury Securities Sdn Bhd has recommended Concrete Engineering Products Bhd shareholders to accept the RM2.60 per share takeover offer from YTL Corp Bhd’s YTL Cement Bhd. (The Edge)
Maxim Global Bhd has received a mandatory takeover offer of 24 sen per share from its managing director Tan Sri Gan Seong Liam. The offer price, however, is a discount to the stock’s recent trading levels. (The Edge)
Cropmate Bhd said the Malaysian Anti-Corruption Commission (MACC) has partially released some of its and its subsidiaries’ frozen bank accounts. (The Edge)
IQ Group Holdings Bhd is shutting down its Penang manufacturing operations that makes motion sensors and lighting as orders fell. (The Edge)
GIIB Holdings Bhd is evaluating a potential investment in a healthcare-related business in response to Bursa Malaysia’s query over the recent surge in its share price. (The Edge)
Eurospan Holdings Bhd’s controlling shareholder is selling down its stake in the furniture maker by June 25, 2026, to comply with the bourse’s public shareholding requirement. (The Edge)
MISC Bhd has secured a contract from PETRONAS Gas Bhd to provide and maintain a newbuild floating storage and regasification unit (FSRU). (The Edge)
Feytech Holdings Bhd has secured a RM96.83 million contract to supply seat covers for a new Proton model. The seat covers will be manufactured by its subsidiary, Gosford Leather Industries Sdn Bhd. (The Edge)
PMW International Bhd has secured a three-year renewal on its concrete pole supply agreement with CTS Horizon Sdn Bhd, which serves all major telcos in Sabah.(The Edge)
Industronics Bhd has triggered Practice Note 17 (PN17) status after its external auditor issued a disclaimer of opinion on the group’s audited financial statements for the 15-month period ended Dec 31, 2025 (FY2025). (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.940203 | 3.972011 |
| EUR | 4.632851 | 4.637764 |
| CNY | 0.579467 | 0.580099 |
| HKD | 0.503290 | 0.506852 |
| SGD | 3.092814 | 3.114765 |