Malaysian Market Review. The FBM KLCI rose 6.95 points, or 0.41%, to close at 1,698.44, from Friday’s 1,691.49, as gains in plantation and commodity-related counters offset cautious regional sentiment, even as losers outpaced gainers 653 to 441. This resilience was underpinned by a third consecutive session of net foreign buying, which lent support to large-cap counters, alongside Malaysia's stable macroeconomic outlook. Sector-wise, Plantation (+2.01%) posted the biggest gains, followed by Energy (+0.58%) and Telecommunication and Media (+0.56%), while Technology (-1.77%) led the decliners, followed by Utilities (-0.82%).
Global Markets: The Dow Jones Industrial Average dropped -0.26%, to 52,498.64, the S&P 500 dropped -0.79% to 7,515.34, and the Nasdaq Composite also dropped -1.55% to 25,873.18, after Trump announced he was reinstating a blockade on Iranian shipping through the Strait of Hormuz, sending oil prices up more than 9%. Semiconductor names hit hardest, including SK Hynix, down 9% after its 13% debut surge Friday, along with declines in Micron, Sandisk, Seagate, AMD, and Intel. Meanwhile, Europe STOXX 600 fell -0.01% to 641.01. In Asia, Japan's Nikkei 225 dropped -1.92% and South Korea's KOSPI fell -8.95, while Hong Kong's Hang Seng rose +0.16%(CNBC).
Market Outlook. U.S. stocks fell Monday after President Trump announced he was reinstating a blockade on Iranian shipping through the Strait of Hormuz, with the U.S. to be reimbursed 20% on all cargo shipped through the strait for providing security. Oil prices surged on the news, with WTI up +9.4% above $78 a barrel and Brent up +9.6% above $83, following a weekend of exchanged airstrikes between the U.S. and Iran, during which Tehran targeted U.S. facilities in the Gulf and declared the strait closed, a claim Trump disputed. For the KLCI, Monday’s close above the 1,695 resistance level, on strength in plantation and commodity counters alongside a third straight session of net foreign buying, may be tested overnight after President Trump's move to reinstate a blockade on Iranian shipping through the Strait of Hormuz sent oil prices surging over 9% and dragged Wall Street lower. While the renewed geopolitical escalation could weigh on broader sentiment, Malaysia's resilient macro fundamentals and sustained foreign inflows may help cushion the impact.
Sector focus. Plantation and Energy-related counters may remain in focus, supported by firm CPO prices and continued strength in the oil prices. Conversely, Technology and Utilities counters could stay under pressure following recent weakness in the sector.
Technical Commentary: The FBMKLCI has extended its rebound after breaking the key resistance of 1,695. The continued push above the 9-day, 20-day and 120-day moving averages suggests that near-term sentiment has improved further, although the index remains just below the key 1,700 resistance level. The bearish Double Top pattern remains technically valid until the index decisively breaks above the 1,700 - 1,720 resistance zone. The broader uptrend remains intact as long as the index holds above the 1,674 support level. However, a break below this level would reinforce the bearish outlook and increase the likelihood of a retest of the 1,660 level.
Company News
Sime Darby Property Bhd lost its case for additional compensation from the government’s acquisition of its land for the West Coast Expressway project. (The Edge)
Tanco Holdings Bhd’s proposed smart AI container port in Port Dickson has secured approvals for its building, earthworks, road and drainage, and street lighting plans. (The Edge)
PRG Holdings Bhd said Andrew Chan Lim-Fai has stepped down as group managing director (MD) and executive director with immediate effect. (The Edge)
Velesto Energy Bhd’s proposed sale of its Naga 3 jack-up drilling rig to Indonesia's PT Indonesia Drilling Energy for US$63 million (RM258.4 million) cash has been terminated after the transaction failed to complete by the agreed deadline. (The Edge)
Milux Corporation Bhd has proposed to acquire smart home appliance rental and retail company Movon Sdn Bhd for RM150 million in an all-share transaction. (The Edge)
KSL Holdings Bhd is offering shareholders the option to reinvest the company's final dividend of 10 sen per share for the year ended Dec 31, 2025. (The Edge)
Ahmad Zaki Resources Bhd said its wholly-owned subsidiary Ahmad Zaki Sdn Bhd (AZSB) has been served with two more winding-up petitions over alleged unpaid claims totalling about RM1.78 million, adding to a string of similar legal actions against the unit over the past two years. (The Edge)
Bursa Malaysia Bhd said its director of group technology Ashish Jaywant Rege will step down effective July 14, following the expiry of his fixed-term employment contract. (The Edge)
Perak Corp Bhd said the group's 49%-owned associate has defaulted on RM18.36 million in financing repayments to Malaysia Debt Ventures Bhd (MDV), prompting the lender to recall the facility. (The Edge)
Kim Teck Cheong Consolidated Bhd has entered into a memorandum of understanding with Sanjung Etika Sdn Bhd, a wholly-owned unit of Yayasan Sarawak, to jointly establish a bakery manufacturing facility in Kuching to produce and distribute Gardenia products in Sarawak. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.053920 | 4.086373 |
| EUR | 4.650109 | 4.654931 |
| CNY | 0.600054 | 0.600676 |
| HKD | 0.517416 | 0.521059 |
| SGD | 3.139305 | 3.161412 |