Malaysian Market Review. The FBM KLCI rose 0.46% to 1,691.39 on Monday, extending its gains for a fourth consecutive session in line with stronger regional markets amid improving global sentiment. Market breadth turned positive, with 804 advancers against 472 decliners. Sector-wise, Technology (+4.90%), Financial Services (+1.77%) and Construction (+1.44%) led gains, while Industrial Products & Services (-3.70%), Healthcare (-3.19%) and Energy (-1.92%) were the main laggards.
Global Markets: U.S. equities surged on Monday, with the Nasdaq (+3.07%), S&P 500 (+1.65%) and Dow Jones (+0.92%) advancing after President Donald Trump announced a ceasefire agreement with Iran, easing geopolitical concerns. Sentiment was further supported by a 4.9% decline in WTI crude oil prices to USD80.75/bbl following the reopening of the Strait of Hormuz, while SpaceX jumped nearly 20%, extending gains from its recent market debut. In Europe, the STOXX 600 gained 0.19%, supported by easing geopolitical concerns. Meanwhile, Asian markets closed broadly higher, led by the Kospi (+5.20%), Nikkei 225 (+4.99%), JCI (+4.12%) and Shenzhen (+3.79%), tracking Wall Street's rally amid optimism over improving Middle East tensions and a more stable oil supply outlook. (Yahoo Finance)
Market Outlook. We expect sentiment to remain positive in the near term, supported by easing geopolitical tensions following reports that the U.S.-Iran agreement has been electronically signed ahead of a formal ceremony this Friday. The reopening of the Strait of Hormuz and lower oil prices should help ease inflation concerns and support global risk appetite. Nevertheless, investors are likely to remain cautious ahead of the FOMC meeting, while continuing to monitor developments surrounding the agreement and the G7 summit.
Sector focus. We favour Technology, Construction and selected Financial Services stocks as easing geopolitical tensions and lower oil prices support risk sentiment. Meanwhile, Energy counters may underperform in the near term following the sharp correction in crude oil prices.
Technical Commentary: The FBM KLCI remains at a critical juncture, hovering around the neckline of a bearish Double Top formation. A decisive break below this level could signal further consolidation or downside risk in the weeks ahead. Should the KLCI decisively breach the 1,670-neckline support, the index may extend its decline towards 1,640. On the upside, resistance is expected around the 1,700 marks.
Company News
Astro Malaysia Holdings Bhd flagged another tough year as the pay-television operator ramps up efforts to stem subscriber losses after a bruising quarter. (The Edge)
Poh Kong Holdings Bhd delivered its strongest quarterly performance since its listing in 2004, with both revenue and profit hitting record highs, underpinned by elevated gold prices and resilient demand. (The Edge)
Vantris Energy Bhd, formerly known as Sapura Energy Bhd, remained in the black for a second consecutive quarter ahead of its application for upliftment from PN17 status. (The Edge)
PETRONAS Chemicals Group Bhd was hit with suspension of IDSS after its share price retreated to a three-month low as investors booked profits following news of the US-Iran peace deal. (The Edge)
Describing the scale of the decline in its share price since June 8 as odd, Tanco also assured shareholders that its business operations, property development and contractual obligations remain unaffected. (The Edge)
IJM Land Bhd, a subsidiary of IJM Corp Bhd, is in a collaboration with MRT Corp Sdn Bhd to jointly develop a transit-oriented development named The Linque adjacent to the MRT Cochrane station in Cheras, Kuala Lumpur. (The Edge)
Kerjaya Prospek Group Bhd has secured a RM529.32 million contract from BRDB Developments Sdn Bhd for a high-end residential development in Bukit Tunku. (The Edge)
Taghill Holdings Bhd has secured a RM133 million contract from a unit of Exsim Group to build serviced apartments in Kwasa Damansara, Sungai Buloh. (The Edge)
Powerwell Holdings Bhd and its wholly-owned subsidiary Kejuruteraan Powerwell Sdn Bhd have secured a RM158.8 million contract, its largest to date, to supply and deliver low-voltage switchboards for an undisclosed international contractor. (The Edge)
Loss-making property developer Country Heights Holdings Bhd is searching for a new CEO after Mohd Rizal Zubair resigned from the position barely two months after taking the helm to pursue personal interests. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.033030 | 4.065410 |
| EUR | 4.697182 | 4.702074 |
| CNY | 0.598785 | 0.599401 |
| HKD | 0.515009 | 0.518640 |
| SGD | 3.147283 | 3.169506 |