Malaysian Market Review. The FBM KLCI fell 0.65% to 1,700.84 on Monday, extending losses as persistent foreign selling and a weaker ringgit continued to weigh on investor sentiment despite a generally stable domestic backdrop. Market breadth remained negative, with 481 advancers against 560 decliners, reflecting cautious investor sentiment. Sector-wise, Property (+0.33%), Health Care (+0.10%) and Telecommunications & Media (+0.09%) were the only gainers, while Financial Services (-1.01%), Technology (-0.99%) and Industrial Products & Services (-0.93%) led the declines.
Global Markets: U.S. equities ended mixed on Monday, with the Dow Jones Industrial Average (+0.29%) extending its gains, while the S&P 500 (-0.37%) and Nasdaq Composite (-1.32%) retreated as weakness in heavyweight technology stocks weighed on broader market sentiment. Alphabet, Amazon, Meta and Microsoft all declined, while SpaceX extended its losses for a third consecutive session following its recent IPO. Meanwhile, oil prices fell sharply after the U.S. and Iran agreed on a 60-day roadmap for further peace negotiations, easing concerns over potential supply disruptions (CNBC). European equities ended higher, with the STOXX Europe 600 (+0.58%) supported by optimism surrounding the initial U.S.-Iran peace talks (CNBC). Asian markets closed mixed, with Japan's Nikkei 225 (+1.55%) surging to a fresh record high, while Hong Kong's Hang Seng Index (-0.65%) retreated amid lingering geopolitical uncertainties (CNBC).
Market Outlook. Market sentiment is likely to remain cautiously optimistic this week as investors continue to monitor developments surrounding the U.S.-Iran peace negotiations, while assessing the potential impact of the ongoing wave of mega AI-related IPOs in the U.S. on global fund flows. Domestically, the FBM KLCI is expected to trade in a range-bound manner as investors balance improving geopolitical sentiment against local political uncertainties. Nevertheless, Malaysia's growing role as a regional AI infrastructure hub and continued investment activity are expected to provide underlying support for the local market, although continued foreign fund outflows may cap near-term upside.
Sector focus. Plantation may remain in focus amid resilient CPO prices. Meanwhile, Energy-related counters could face selling pressure following the sharp decline in crude oil prices, while export-oriented companies may benefit from the weaker ringgit.
Technical Commentary: The FBM KLCI sits at a critical juncture, hovering above its 20-day and 120-day moving averages. The index remains capped below key resistance. Immediate downside risk has eased, but the Double Top pattern stays intact unless price breaks decisively above the key resistance at 1,720 – 1,740.
Company News
Berjaya Corporation Bhd has disposed of its entire 8.64% stake in Citaglobal Bhd for RM42.56 million to Detik Ria Sdn Bhd in a related-party transaction. (The Edge)
KJTS Group Bhd has entered into a 10-year savings-sharing agreement with Top Glove Corp Bhd that could generate approximately RM27.3 million in revenue. (The Edge)
Eduspec Holdings Bhd said Tan Sri Tee Tiam Lee has ceased to be a substantial shareholder after disposing of a 4% stake in an off-market transaction. (The Edge)
Widad Group Bhd founder Tan Sri Muhammad Ikmal Opat Abdullah has resigned as executive deputy chairman, citing personal commitments. (The Edge)
LFE Corp Bhd has secured a RM16.22 million related-party contract for piling and associated works for a development project in Cyberjaya. (The Edge)
Propel Global Bhd has launched its maiden RM64 million commercial property development project in Kuantan as part of its diversification strategy. (The Edge)
Titijaya Land Bhd plans to acquire a 6.07-hectare leasehold land parcel in Bukit Raja, Klang, for RM47.39 million to expand its land bank. (The Edge)
ICT Zone Asia Bhd has secured a RM28.1 million ICT hardware leasing contract, raising its order book to RM321.1 million. (The Edge)
Bedi Bhd has proposed acquiring two Sabah property development companies from a related party for RM38.82 million. (The Edge)
Sunview Group Bhd has proposed disposing of its entire 22.44% stake in Winstar Capital Bhd for RM30.1 million in cash. (The Edge)
Tanco Holdings Bhd group managing director Datuk Seri Andrew Tan Jun Suan has acquired a 0.584% stake in the company from his younger brother. (The Edge)
Mulpha International Bhd has been named in a class action lawsuit in Australia over alleged construction and development issues involving a residential project. (The Edge)
Talam Transform Bhd said the High Court has approved the convening of an extraordinary general meeting on July 10 to decide on a proposed board replacement. (The Edge)
Theta Edge Bhd chairman Tan Sri Abdul Rahman Mamat has resigned to pursue other commitments. (The Edge)
Elridge Energy Holdings Bhd expects its trade receivables to decline in the coming quarter following the collection of outstanding customer payments. (The Edge)
Hextar Retail Bhd is acquiring the assets of a Zok Noodle House outlet in Bandar Sunway for RM1.25 million to expand its food and beverage business. (The Edge)
GDB Holdings Bhd said its subsidiary has been named in a judicial management application involving its joint venture company, Dynamic Contractor Sdn Bhd. (The Edge)
Disclaimer
The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.
Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.
| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.131730 | 4.163584 |
| EUR | 4.750311 | 4.753957 |
| CNY | 0.611701 | 0.612173 |
| HKD | 0.527237 | 0.530801 |
| SGD | 3.196791 | 3.218482 |