Malaysian Market Review. The FBM KLCI surged (+0.99%) to 1,683.50 on Tuesday, extending its rebound as bargain hunting and buying interest in selected banking and technology counters lifted market sentiment, in line with stronger regional markets and easing concerns over oil prices. Market breadth was positive, with 678 gainers outnumbering 458 losers, while 572 counters were unchanged. Sector-wise, Technology (+2.29%), Utilities (+1.70%) and Financial Services (+1.25%) led the gains, while Healthcare (-0.69%) and Energy (-0.09%) were the only sectors in negative territory.
Global Markets: U.S. equities were mixed overnight, with the Nasdaq Composite gaining (+0.45%) to close at a fresh record of 27,244.28, while the S&P 500 was largely unchanged (0.00%) and the Dow Jones Industrial Average declined (-0.36%). The Nasdaq was supported by gains in technology stocks, including SanDisk, which rose nearly 7% following a bullish analyst call. Meanwhile, Brent crude fell 1.47% to US$98.55/bbl, marking its fifth consecutive session of losses, following reports of potential de-escalation between the US and Iran. In Europe, the STOXX Europe 600 edged higher (+0.13%) after initially trading lower, as investors monitored developments surrounding the US-Iran situation and oil prices. Across Asia, markets were mixed, with the Hang Seng Index rising (+0.18%) and the Shanghai Composite gaining (+0.06%) and South Korea’s Kospi advancing (+0.15%), while Japan's markets were closed for a holiday (CNBC).
Market Outlook. We expect the FBM KLCI to maintain its recovery momentum in the near term, supported by improving global risk sentiment, particularly following the renewed strength in technology and semiconductor stocks. The retreat in oil prices could also provide some relief to inflationary concerns and overall market sentiment, while expectations of further progress in the upcoming Trump-Xi meeting may support regional equities. Nevertheless, market conditions are likely to remain volatile as investors continue to assess developments surrounding the US-Iran conflict, the outlook for global interest rates and elevated US Treasury yields. Domestically, recent weakness could continue to encourage bargain hunting, although the sustainability of the rebound will likely depend on improvements in external sentiment and follow-through buying.
Sector focus. Technology stocks could stay on investors’ radar amid the renewed strength in global AI and semiconductor counters, although the sector remains sensitive to movements in US Treasury yields. Utilities may also continue to attract defensive interest, supported by resilient electricity demand and ongoing grid and energy-transition investments.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI extended its rebound for a second consecutive session, rising 0.99% to close at 1,683.53, reclaiming the 1,680 level. We expect the index to extend its rebound today, with the 1,700-1,705-region likely to cap further upside. A sustained break above this zone would signal improving near-term momentum.
However, the index remains within a descending trend channel and below its EMA9, EMA20, EMA120 and SMA200, suggesting that momentum remains weak. Failure to sustain above 1,680 could trigger a pullback towards the lower channel support at around 1,660.
Company News
Cuscapi Bhd proposed a private placement of up to 94.49m new shares to raise RM4.55m, mainly for working capital, including operating expenses and payments to trade creditors. (The Edge)
Zetrix AI Bhd managing director Wong Thean Soon further trimmed his stake to 11.06% from 11.97%, while his investment vehicle Asia Internet Holdings ceased to be a substantial shareholder after disposing of 57m shares. (The Edge)
Sunway Healthcare Holdings Bhd saw Singapore sovereign wealth fund GIC sell 575m shares worth RM1.2bn at RM2.08 per share, representing a 9% discount to Monday’s closing price. (The Edge)
Eco World Development Group Bhd and its JV partners agreed to sell 222 acres of industrial land in Negeri Sembilan to Tera Data Centers for RM1bn. (The Edge)
MMAG Holdings Bhd proposed a RM130m share capital reduction to eliminate part of its accumulated losses and strengthen its financial position. (The Edge)
Country Heights Holdings Bhd saw the forced auction of its six-acre commercial land in Kajang cancelled after no bidders came forward, with the property previously carrying a RM55m reserve price. (The Edge)
OGX Group Bhd ventured into renewable energy through battery energy storage systems, targeting Malaysia’s growing data centre market after being appointed an authorised distributor of Chinabased HYXI’s products. (The Edge)
Maybulk Bhd proposed to acquire a freehold industrial property in Bandar Bukit Raja, Klang for RM35.5m as part of its diversification into industrial property. (The Edge)
Oriental Interest Bhd applied to withdraw its draft circular and listing application for its proposed RM280m related-party acquisition in the motorcycle financing and retail business to facilitate updates to the documents. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.059912 | 4.092391 |
| EUR | 4.674546 | 4.683843 |
| CNY | 0.608571 | 0.609185 |
| HKD | 0.517481 | 0.521624 |
| SGD | 3.182535 | 3.208138 |