Malaysian Market Review. The FBM KLCI rose 0.63% to 1,683.26 on Thursday, recovering part of the previous session's losses as buying interest returned to selected heavyweight banking and plantation counters. The benchmark index outperformed most regional markets despite a cautious broader sentiment backdrop. However, market breadth remained negative, with 562 advancers against 643 decliners, suggesting that gains were driven primarily by index-linked blue chips rather than broad-based participation. Sector-wise, Plantation (+2.94%), Financial Services (+1.16%) and REITs (+0.85%) led advances, while Technology (-1.62%), Industrial Products & Services (-1.18%) and Utilities (-1.02%) were the main laggards.
Global Markets: Wall Street closed mixed overnight, with the Dow Jones (+1.73%) reaching a record high and the S&P 500 (+0.41%) advancing, while the Nasdaq (-0.09%) edged lower as weakness in semiconductor stocks weighed on technology shares. Investors rotated into healthcare, financial and consumer names following a sharp sell-off in Broadcom and other chip-related counters. (CNBC) In Europe, the STOXX 600 rose 0.52% as easing oil prices supported sentiment, although investors remained cautious over the durability of a potential Middle East peace agreement. (Reuters) Across Asia, markets closed mostly lower, led by the Kospi (-1.94%), JCI (-1.70%), Hang Seng Index (-1.48%) and Nikkei 225 (-1.36%), amid continued weakness in technology-related counters. (Yahoo Finance).
Market Outlook. We expect near-term market sentiment to remain cautious as investors continue to assess developments in the Middle East, with the ceasefire between Israel and Lebanon remaining fragile following fresh exchanges of strikes involving Hezbollah. Investors are likely to remain vigilant over ongoing diplomatic efforts between the U.S. and Iran, as well as the risk of renewed disruptions to regional stability and global energy supply routes. Domestically, we expect the FBM KLCI to remain range-bound amid mixed regional market performance, persistent foreign fund outflows and increased political noise ahead of the upcoming state elections, although continued strength in banking, plantation and defensive sectors may help support the benchmark index.
Sector focus. Plantation, Financial Services and Energy sectors may outperform, while Technology could remain under pressure following weakness in global semiconductor stocks.
Technical Commentary: The FBM KLCI has shown signs of stabilising after finding support near the SMA200 level following the recent breakdown from its Double Top formation. While the broader technical outlook remains cautious, holding above the 1,665–1,680 support zone could help limit further downside pressure and support a near-term rebound towards the 1,700-resistance level.
Company News
IOI Properties Group Bhd will rejoin the FBM KLCI as a constituent, while Sime Darby Bhd is being removed as a member of the 30-stock index following a semi-annual review. (The Edge)
PETRONAS Gas Bhd and a unit of Tenaga Nasional Bhd have signed a head of agreement to jointly develop the third regasification terminal (RGT-3) in Lumut, Perak. (The Edge)
MISC Bhd has entered into a long-term tenancy agreement with Petroliam Nasional Bhd (PETRONAS) to renew the lease of its office space at Menara Dayabumi, Kuala Lumpur, in a deal valued at an estimated RM433 million over 15 years. (The Edge)
Velesto Energy Bhd has secured a contract to provide its Naga 6 jack-up drilling rig and associated services for an offshore drilling campaign in Thailand. (The Edge)
GIIB Holdings Bhd has been issued an unusual market activity (UMA) query after the rubber compounds manufacturer’s shares climbed to an over-five-year high of 47 sen on Thursday. (The Edge)
Sentoria Group Bhd is at risk of being delisted on June 16, after the developer failed to submit its regularisation plan by June 3. (The Edge)
PRG Holdings Bhd said its board has rejected a proposal from a substantial shareholder to remove group managing director Andrew Chan Lim-Fai at the upcoming general meeting. (The Edge)
A takeover offer for Maxim Global Bhd from its managing director Tan Sri Gan Seong Liam is not fair and not reasonable, said the deal’s independent adviser. (The Edge)
Sapura Industrial Bhd has proposed to sell a 2.16-hectare vacant industrial land in Ayer Keroh, Melaka, for RM10.48 million to a Melaka-based manufacturer of polythene bags, Loongsen Plastics (M) Sdn Bhd. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.995265 | 4.027326 |
| EUR | 4.657937 | 4.667456 |
| CNY | 0.591686 | 0.592296 |
| HKD | 0.510117 | 0.513710 |
| SGD | 3.112355 | 3.137425 |