Malaysian Market Review. The FBM KLCI declined 0.79% to 1,701.02 on Friday, tracking a broad regional sell-off amid renewed concerns over fresh U.S. tariff measures and their potential impact on global trade. Market breadth remained negative, with 714 decliners against 348 advancers, reflecting cautious investor sentiment. Sector-wise, Plantation (+0.66%), Transportation & Logistics (+0.42%) and REIT (+0.16%) were the only gainers, while Telecommunications & Media (-1.65%), Financial Services (-0.76%) and Construction (-0.72%) led the declines.
Global Markets: U.S. equities ended mixed on Friday, with the Dow Jones Industrial Average (+0.46%) and S&P 500 (+0.05%) closing higher, while the Nasdaq Composite (-0.64%) declined as weakness in semiconductor stocks weighed on the technology sector. Earlier in the session, oil prices retreated after reports that Pakistan, with China's backing, was exploring renewed U.S.- Iran peace talks. However, crude prices pared part of their losses after reports that U.S. President Donald Trump was considering escalating military action against Iran, with Brent crude settling at US$96.78 per barrel (-4%). On the other hand, Apple rose 3.5%, providing the biggest boost to the Dow, while Intel, Micron, Broadcom and AMD all ended lower (CNBC). European equities closed broadly higher, with the STOXX Europe 600 (+0.82%), Germany's DAX (+1.36%) and the FTSE 100 (+0.91%) (CNBC). Meanwhile, Asian markets closed mostly lower, led by South Korea's KOSPI (- 5.72%), while China's Shanghai Composite (-1.61%) and Hong Kong's Hang Seng Index (-0.98%) also ended in negative territory. Japan's Nikkei 225, however, bucked the regional trend, rising 0.73% (CNBC).
Market Outlook. We expect the FBM KLCI to trade cautiously this week as investors await the outcome of the U.S. Federal Reserve's FOMC meeting on Wednesday (July 29). While the Fed is still widely expected to leave interest rates unchanged for a fifth consecutive meeting, expectations of a surprise 25-basis-point rate hike have increased in recent days, reflecting renewed inflation concerns following the recent surge in oil prices. Market sentiment is also likely to be influenced by the implementation of the U.S.'s new 10%-12.5% tariffs on 60 trading partners, developments in the Middle East, and fluctuations in crude oil prices. In addition, investors will focus on earnings from major U.S. technology companies, including Microsoft, Meta, Apple, and Amazon, for further clues on AI-related capital expenditure and the broader market outlook.
Sector focus. We continue to favour the Energy sector as elevated geopolitical risks could keep crude oil prices supported despite the recent correction. Plantation counters may also benefit if stronger energy prices continue to underpin CPO prices. Meanwhile, Technology stocks are expected to remain volatile amid upcoming U.S. technology earnings and ongoing scrutiny over AI-related spending.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI retreated after encountering resistance within the 1,720– 1,740 zone, where the descending trendline coincides with recent swing highs, before finding support near the 1,700 psychological level and staging a modest rebound into the close. Despite the pullback, the index continues to trade above its EMA120 and SMA200, although it has slipped below the EMA9 and EMA20, indicating that near-term momentum has softened. A sustained move back above the 1,710–1,720 range would be needed to restore bullish momentum and pave the way for a retest of the 1,760–1,770 resistance zone. On the downside, the 1,700–1,680 area remains the key support, followed by 1,655 should selling pressure intensify.
Company News
PRG Holdings Bhd's largest shareholder Datuk Ng Yan Cheng has filed a winding-up petition against the company after failing to reach an agreement on restructuring a RM21.22 million loan. (The Edge)
Destini Bhd has received a requisition notice from shareholders seeking an EGM to remove four directors and appoint two new board members. (The Edge)
Unisem (M) Bhd has seen Norway's Norges Bank emerge as a substantial shareholder after increasing its stake to 5.13%. (The Edge)
Cyberjaya Education Group Bhd has proposed a RM235 million share capital reduction to eliminate its accumulated losses. (The Edge)
Lagenda Properties Bhd has proposed establishing a RM1.5 billion sukuk programme to finance investments, land acquisitions and working capital. (The Edge)
YNH Property Bhd's subsidiary has obtained Inland Revenue Board approval for a settlement plan to resolve RM5.16 million in outstanding tax arrears. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.075294 | 4.107937 |
| EUR | 4.657382 | 4.662187 |
| CNY | 0.603769 | 0.604398 |
| HKD | 0.519913 | 0.523572 |
| SGD | 3.158249 | 3.180595 |