Malaysian Market Review. The FBM KLCI slipped 0.11% lower to 1,664.06 on Tuesday, a second straight marginal decline, even as the broader market and most sectors closed higher. The benchmark’s underperformance was largely down to profit-taking in Finance (-0.32%), its heaviest sector weighting, which offset firmer showings elsewhere. Construction (+1.78%) led the gainers, followed by Technology (+1.02%) and REITs (+0.87%), while Industrial Products & Services (-0.41%) joined Finance among the laggards. Market breadth remained positive, with 565 advancers against 414 decliners, with the FBM Small Cap (+0.40%) and ACE Market (+0.71%) outpacing the benchmark. However, foreign investors swung back to net selling of RM183.0 million after a single session of buying, with local institutions (+RM198.8 million) absorbing the outflow.
Global Markets: U.S. equities advanced on Tuesday to close out their strongest quarter in six years, with the Nasdaq Composite (+1.52%) again leading as the technology and semiconductor rally extended into quarter-end. The S&P 500 (+0.79%) and Dow Jones Industrial Average (+0.26%) also gained, the latter capping its best first half in five years. A softer-than-expected consumer confidence reading, alongside signs of a cooling labour market, kept investors focused on the U.S. payrolls data due later in the week European markets closed broadly higher, with the STOXX Europe 600 (+0.88%) lifted by technology names, while Asia was mixed: Japan’s Nikkei 225 (+0.86%) and South Korea’s KOSPI (+0.97%) rose, but Hong Kong’s Hang Seng Index (-0.63%) slipped and Indonesia’s JCI (-3.05%) extended its sharp slide (CNBC).
Market Outlook. With a strong quarter now in the books, attention shifts squarely to the U.S. labour market in a holiday-shortened week, where Wednesday’s ISM manufacturing survey and Thursday’s non-farm payrolls will test the durability of the rate-cut narrative that has underpinned the recent risk-on move. Softening confidence and hiring signals leave the data finely balanced: a weak print could embolden expectations of Fed easing, while resilience would challenge the rally’s momentum. Locally, the persistent split between a lagging large-cap benchmark and a firmer broad market suggests opportunities remain stock- and sector-specific rather than index-driven, though the swing back to foreign net selling and a softer ringgit are reminders that external flows stay fickle.
Sector focus. Technology stays the sector to watch, with Bursa-listed chip and EMS tracking the global semiconductor trade and their direction tied to this week’s US jobs data. Construction could stay in favour as high-tech facility and infrastructure contracts continue to flow. REITs should retain a defensive bid if softer data revives rate-cut hopes, while the banks must be steady for the index to close its gap to the broader market.
Technical Commentary: The FBM KLCI extended its decline to 1,664.06, consolidating below the neckline of its Double Top pattern. The moving averages remain stacked bearishly above price, with the 9-, 20- and 120-day EMAs at 1,676-1,693 over the 200-day SMA at 1,675. The continued failure to reclaim the neckline points to a lack of buying conviction while the index stays pinned beneath the 1,680 neckline. The 1,640-1,620 zone remains the downside reference, as only a close back above the 1,680 band would begin to neutralise the bearish setup.
Company News
Carimin Petroleum Bhd's proposed privatisation of Sealink International Bhd at 41 sen per share has lapsed after a major shareholder blocked the exercise, prompting the board to abandon the scheme. (The Edge)
Critical Holdings Bhd has secured a RM772.49 EPC contract to develop a high-technology industrial facility for a US-based wafer fabrication multinational company at Kulim Hi-Tech Park. (The Edge)
Exsim Hospitality Bhd was awarded a RM66.81 million related party contract by Dynamicz Sdn Bhd to undertake demolition and architectural works at a Damansara Perdana development. (The Edge)
SNS Network Technology Bhd posted a 73.6% drop in first-quarter net profit as revenue nearly halved, impacted by product delivery timing and higher cost base from last year’s large commercial orders. (The Edge)
MM Computer Systems Bhd secured two contracts worth RM24.54 million for server and network maintenance support from an undisclosed GLC. (The Edge)
Globaltec Formation Bhd said its 70%-owned unit, NuEnergy Gas Ltd, has signed a US$88 million (RM358.16 million) contract with PT Beijing Energy Linking (PT BEL) to advance its coal bed methane project in Indonesia, with PT BEL recovering capital costs from future gas sales. (The Edge)
Malayan Banking Bhd announced that its subsidiary, PT Bank Maybank Indonesia Tbk, has secured shareholder approval to serve as the operational financial conglomeration holding company for the group’s Indonesian businesses. (The Edge)
Heineken Malaysia Bhd has appointed Datuk Iain John Lo as chairman effective Aug 15, succeeding Datuk Seri Idris Jala after nine years on the board. (The Edge)
CTOS Digital Bhd has appointed Creador founder and CEO Brahmal Vasudevan, 57, as non-executive chairman effective July 1, succeeding Datuk Noorazman Abd Aziz. CTOS also named Datuk Iswaraan Suppiah, 62, former AmBank COO, as independent non-executive director. (The Edge)
Sunway Healthcare Holdings Bhd has promoted Dr Seow Vei Ken to chief medical director and appointed industry veteran Erica Lam as CEO of Sunway Medical Centre, Sunway City Kuala Lumpur, effective July 1. (The Edge)
Datuk Seri Chiau Beng Teik stepped down from the boards of 5 group linked companies (including Chin Hin, Ajiya, and Fiamma) as a part of the major family succession plan, passing the executive chairmanship to his son, Datuk Wira Chiau Haw Choon. (The Edge)
Puncak Niaga Holdings Bhd has appointed Azlan Shah Rozali, 40, son of founder Tan Sri Rozali Ismail, as chairman and president as Rozali retires as executive chairman transitioning to an advisory role. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.069208 | 4.101849 |
| EUR | 4.653775 | 4.658554 |
| CNY | 0.601388 | 0.602040 |
| HKD | 0.519149 | 0.522808 |
| SGD | 3.144553 | 3.166794 |