Malaysian Market Review. The FBM KLCI eased, or 0.04%, to close at 1,682.93 on Tuesday, pulling back marginally from Monday's 1,683.53 as investors booked profits following the recent rebound, even as Wall Street's overnight records failed to spur fresh buying locally. Market breadth stayed negative for a second straight day, with 577 decliners outpacing 410 advancers. Sector-wise, Plantation led the gains, adding +0.38% to 9,041.88, and Energy rose +0.24% to 761.33, while Financial Services slipped -0.03% to 19,927.96 and Industrial Products & Services eased -0.09% to 181.20.
Global Markets: The Dow Jones Industrial Average slipped, or -0.25%, to 52,925.15, pulling back from Monday's record close, the S&P 500 fell -0.45% to 7,503.85, and the Nasdaq Composite dropped -1.16% to 25,818.69, as a fresh wave of chip-sector selling swept through Wall Street after Samsung's record Q2 results stoked AI-overcapacity concerns and Reuters reported that China's DeepSeek is developing its own AI inference chip; oil prices also spiked after Washington revoked a waiver permitting Iranian crude exports, with Brent surging more than 5% above US$76 a barrel. Europe's STOXX 600 closed around 0.7% lower, tracking the global tech-led selloff. In Asia, South Korea's KOSPI bore the brunt of the rout, tumbling 4.91% to 7,656.31 after triggering a 20-minute circuit breaker as Samsung and SK Hynix both slid more than 6%, while Japan's Nikkei 225 fell 2.12% to 68,256.96, and Hong Kong's Hang Seng Index eased 0.51% to 23,496.89.
Market Outlook. Global risk appetite turned markedly more cautious overnight, as a fresh chipsector selloff, triggered by AI-overcapacity concerns following Samsung's blowout Q2 results and reports that China's DeepSeek is developing its own AI inference chip, dragged Wall Street and Asian markets broadly lower, with KOSPI's near-5% plunge and its second circuit-breaker trigger this month underscoring how fragile regional tech sentiment remains. Adding to the unease, oil prices spiked after Washington revoked Iran's crude export waiver amid escalating tensions in the Strait of Hormuz, a fresh input-cost risk for the region. For the KLCI, this suggests our previous view of narrow, heavyweight-led gains is now at risk of turning into outright profit-taking pressure, particularly in technology and semiconductor-linked names; we would turn more defensive nearterm and await clearer signs of stabilisation in regional chip sentiment before re-engaging. Domestic catalysts, Bank Negara Malaysia's OPR decision (July 9) and the Johor state election (July 11), remain on the radar, but external volatility is likely to dominate price action into the rest of the week.
Sector focus. Plantation counters remained the standout performers, supported by sustained strength in CPO prices. The Energy sector may also see renewed interest today, following the overnight rebound in crude oil prices. Meanwhile, we remain watchful for stronger follow-through in regional semiconductor stocks before turning more constructive on our OVERWEIGHT technology coverage.
FBMKLCI Technical Outlook
Technical Commentary:
Tuesday's marginal pullback to 1,682.93 kept the FBM KLCI within the recovery zone reclaimed earlier this week, holding above both the 9-day EMA and the 1,673 support level flagged previously. 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
Astro Malaysia Holdings Bhd is launching an X3 streaming service from July 20 from as low as RM39.99 per month. (The Edge)
Zetrix AI Bhd has signed a preliminary agreement with the Philippine government to develop the country's public blockchain infrastructure, marking a major expansion of its blockchain footprint in Southeast Asia. (The Edge)
Master Tec Group Bhd has secured a one-year extension of its cable supply contract with Tenaga Nasional Bhd, valued at RM109.54 million. (The Edge)
Niche Capital Emas Holdings Bhd said its joint development partner, Greensnow Consolidated Bhd, has secured an interim manufacturing licence from to process rare earth carbonate into rare earth oxide. (The Edge)
MCE Holdings Bhd is aiming to raise its exports to around 30% from less than 10% of total revenue now, as the automotive electronics manufacturer ramps up production at its new manufacturing hub. (The Edge)
Reservoir Link Energy Bhd has secured a five-year contract from Petroliam Nasional Bhd to provide remedial sand control equipment and services. (The Edge)
Rhong Khen International Bhd is acquiring three industrial properties in Kapar, Selangor, for a cash consideration of RM47 million (The Edge)
Waja Konsortium Bhd will exit Guidance Note 3 (GN3) status on Wednesday (July 8), more than two years after being classified as a financially distressed company (The Edge)
Theta Edge Bhd said its joint venture with Nova MSC Bhd to provide e-government and technology solutions has been terminated after the venture failed to commence any material business operations and achieve its intended commercial objectives. (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 | 4.054909 | 4.087376 |
| EUR | 4.648674 | 4.653494 |
| CNY | 0.598475 | 0.599094 |
| HKD | 0.517254 | 0.520894 |
| SGD | 3.139602 | 3.161757 |