Malaysian Market Review. The FBM KLCI broke a three-session losing streak on Thursday, rising 0.30% to 1,661.83 on Wednesday, even as market breadth turned negative, with 441 advancers against 627 decliners. With the Financial sector (+0.72%) leading the advancers, joined by Consumer (+0.59%), Plantation (+0.51%) and Telecommunications & Media (+0.22%) making up the rest. The remainder of the board, however, leaned red, with Technology (-1.99%) as the standout drag, followed by Construction (-1.03%), Energy (-0.91%), Utilities (-0.90%), Property (-0.88%), and REITs (-0.64%) making up the rest of the laggards.
Global Markets: The June employment report was released a few hours ago, with non-farm payrolls rising just 57,000 against expectations of nearly 110,000, prior months were revised down by a combined 74,000, which were softened by a dip in unemployment rate to 4.2%. In light of the recent report, Wall Street promptly diverged, as the Dow Jones Industrial Average (+1.14%) closed at record highs, the S&P 500 finished exactly flat, and the Nasdaq (-0.80%) sagged as semiconductor names took further punishment. In Asia, South Korea's KOSPI cratered -7.89% as its chipmakers were dumped, followed by regional markets Shenzhen (-3.85%), the Nikkei 225 (-2.47%) and the Shanghai Composite (-2.03%), while Hong Kong's Hang Seng (+0.76%) ended higher. Europe, which closed after the payrolls release, rallied strongly, with the FTSE 100 adding 1.67% and the STOXX Europe 600 +1.41% (CNBC).
Market Outlook. The soft payrolls print rewrites the near-term policy calculus, draining urgency from the rate-hike trade and giving emerging-market currencies room to breathe, with the ringgit up 0.33% to 4.0805 against the dollar even with foreign equity money still leaving. Set against that relief is the ferocity of the Asian tech unwind, and local semiconductor-linked names are unlikely to find committed buyers until Seoul and Tokyo stabilise. Today's session also arrives without a US lead, as markets were shut for Independence Day, so liquidity should thin into the weekend and headline risk will carry more weight than usual.
Sector focus. Semiconductors and EMS counters frame the immediate question for the market as regional names such as Korean memory-chip counters are liquidated, with beaten-down local proxies potentially becoming a quick bargain-hunt, while a second leg lower would argue for staying clear a while longer. Banks deserve close attention for follow-through, since receding US hike risk and a firmer ringgit hand the sector a kinder operating backdrop and its leadership is what any index recovery currently rests on. A firmer currency, if it sustains, may begin to pinch exporter margins, so ringgit sensitivity is worth screening for across portfolios. Defensive and gold-adjacent names could keep drawing flows while regional volatility stays elevated, and construction remains hostage to contract newsflow after an extended-stretch.
Technical Commentary:
Thursday produced a recovery, closing at 1,661.83 for a 5.00-point gain. The rebound never reached the moving averages as the 9-day EMA at 1,670.40 went untouched. A single up-day carried by 41.3% of the market reads as consolidation inside a downtrend rather than a reversal. Confirmation requires a decisive close through 1,670-1,681; failure at 1,657 would put the 0.382 retracement at 1,624.68 back in play, with 1,579.44 the deeper line beneath.
Company News
Unisem (M) Bhd plans to raise up to RM742.02 million through a private placement to fund the expansion of its semiconductor assembly, packaging and bumping solutions for artificial intelligence (AI) and high-performance computing, while reducing bank borrowings. (The Edge)
Duopharma Biotech Bhd said it has formally secured multiple insulin contracts totalling over RM225 million from the government. (The Edge)
Southern Cable Group Bhd secured a supplementary contract worth RM403.6 million from Tenaga Nasional Bhd for the supply of underground power cables and conductors, raising its orders in hand to over RM1 billion, providing earnings visibility until 2027. (The Edge)
Favelle Favco Bhd said on Thursday that it has secured three contracts worth a combined RM504 million for the supply of offshore and tower cranes. (The Edge)
Reservoir Link Solutions Sdn Bhd (RLS), a 60%-owned consulting subsidiary of Reservoir Link Energy Bhd, was appointed by Petronas Nasional Bhd (PETRONAS) as a panel contractor for integrated discovered resource assessment services covering carbon capture, utilization and storage (CCUS) and contaminants. (The Edge)
Singapore-based PK Green Fund has emerged as a substantial shareholder in Jentayu Sustainables Bhd through the acquisition of a 9.02% stake in the renewable energy developer. (The Edge)
Aberdeen Group Plc has emerged as a substantial shareholder of Bumi Armada Bhd with its purchase of a 5.02% stake in the offshore oilfield services provider. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.063983 | 4.096553 |
| EUR | 4.652521 | 4.657326 |
| CNY | 0.600309 | 0.600935 |
| HKD | 0.518319 | 0.521966 |
| SGD | 3.141818 | 3.164007 |