Malaysian Market Review. The FBM KLCI edged higher for a third straight session on Monday, adding 4.48 points, or 0.27%, to close at 1,683.53 (from Friday's 1,679.05), as renewed buying interest in banking and plantation heavyweights offset broader caution ahead of this week's US data flow. Market breadth, however, stayed negative, with 613 decliners outpacing 410 advancers, pointing to a narrowly led advance beneath the headline gain. Sector-wise, Financial Services led the index higher, rising 102.45 points to 19,934.42, followed by Plantation (+38.25 points to 9,007.79) and Energy (+0.89 points to 759.49), while Industrial Products & Services (- 1.08 points to 181.36) lagged.
Global Markets: The Dow Jones Industrial Average climbed 155.84 points, or 0.29%, to a record close of 53,055.91, the S&P 500 added 0.72% to 7,537.43, and the Nasdaq Composite gained 1.12% to 26,121.16, Europe's STOXX 600 touched a fresh all-time intraday high of 654.44 before profit-taking in utilities and healthcare pulled it back to close at 650.5, down -0.35%, South Korea's KOSPI eased -0.46% to 8,051.33. Japan's Nikkei 225 was essentially flat, slipping -0.01% to 69,737.69, as early gains driven by carryover AI optimism were unwound by profit-taking in chip names. Hong Kong's Hang Seng Index outperformed regional peers, rising +1.14% to 23,616.32, lifted by technology, financial, and consumer names.
Market Outlook. Global risk appetite remains constructive, anchored by the Fed's dovish repricing after last week's weak US payrolls print, with Wall Street pushing to fresh records. However, the picture in Asia is more mixed and stock-specific: KOSPI and Nikkei both paused for breath after their recent violent swings, with markets now focused on a heavy catalyst calendar — Samsung's preliminary Q2 earnings (July 7), SK Hynix's Nasdaq ADR listing (July 10), and Malaysia's own BNM OPR decision (July 9) and the Johor state election (July 11). For the KLCI, this suggests the path of least resistance remains modestly higher near-term, but gains are likely to stay narrow and heavyweight-led (banks, plantation) rather than broad-based, until regional tech/semiconductor sentiment fully stabilises. We'd stay selectively constructive but avoid chasing strength, given the string of event risks over the coming week.
Sector focus. Banks and Plantation counters remain the clear beneficiaries — banks on continued bargain-hunting in blue-chip heavyweights, and Plantation on firmer CPO price sentiment. Technology and the broader mid- and small-cap space stayed soft as regional chip sentiment continues to stabilise post-Friday's KOSPI-led reversal. We would await firmer regional chip follow-through before turning more constructive on our OVERWEIGHT technology coverage.
FBMKLCI Technical Outlook
Technical Commentary:
Friday's rally extended the market's rebound, marking its highest close since mid-June while moving decisively above the 9-day EMA. The close above the Double Top neckline at 1,673 reinforces the near-term recovery and increases the likelihood of a retest of the 1,690-resistance level. A decisive breakout above 1,690 would invalidate the bearish Double Top formation and signal the potential resumption of the broader uptrend. Conversely, a pullback below 1,673 would weaken the recent bullish momentum and place this week's gains at risk.
Company News
Sime Darby Property Bhd is acquiring Wisma Unirazak in Kuala Lumpur for RM160 million cash in a related-party transaction, which it plans to turn into a premium, mixed-use development with an estimated gross development value of RM900 million. (The Edge)
Construction and property company WCT Holdings Bhd has secured a subcontract worth 836 million dirham (RM926.21 million) for a residential development project in the United Arab Emirates (UAE). (The Edge)
Danish brewery firm Carlsberg will receive US$643 million, or about RM2.62 billion, from Japan's Sapporo Breweries for a 25% stake in a new joint venture spanning Southeast Asia and Hong Kong. Carlsberg will hold a 75% stake and operational control of the venture that will combine its existing businesses in Malaysia, Singapore, Hong Kong, Laos, Vietnam and Cambodia. (The Edge)
Berjaya Property Bhd has partnered with China-based Wanli Tire Co Ltd to set up a RM1.3 billion automotive tyre manufacturing plant in Selangor. (The Edge)
Hibiscus Petroleum Bhd has achieved first oil at its 100%-owned Teal West field in the UK’s North Sea. (The Edge)
BM Greentech Bhd’s wholly owned subsidiary Plus Xnergy Holding Sdn Bhd has acquired 100% equity interest in NEFIN V Power Sdn Bhd (NVP) for RM3.6 million via two sale and purchase agreements. (The Edge)
Financially troubled rubber glove maker Careplus Group Bhd is selling a property in Seremban for RM42 million, as part of its plan to fund its new energy vehicle venture. (The Edge)
Sarawak-based plantation company Rimbunan Sawit Bhd is assessing the operational and financial impact of a disruption at its Ulu Teru Estate in Miri, following a blockage of the estate's main access route. (The Edge)
Asdion Bhd is set to be suspended from trading on July 14 and delisted on July 16 after failing to appoint a replacement sponsor for its proposed Guidance Note 3 regularisation plan. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.054909 | 4.087376 |
| EUR | 4.648674 | 4.653494 |
| CNY | 0.598475 | 0.599094 |
| HKD | 0.517254 | 0.520894 |
| SGD | 3.139602 | 3.161757 |