Look to blue chips as Bursa nears key support: Analyst
KUALA LUMPUR: Investors should consider accumulating blue-chip stocks, particularly in the banking and telecommunications sectors, as Bursa Malaysia edges closer to the psychological support level of 1,500, said Rakuten Trade.
In its daily market note, the brokerage said renewed foreign fund outflows had pushed the benchmark index down 0.70 per cent or 10.63 points to close at 1,508.35 last Friday, with sentiment remaining fragile.
"Notwithstanding recent sell-offs, we would advocate investors to accumulate on the blue chips, namely the banks and telecommunications (telcos), if and when the index dips below the 1,500 mark," it said.
According to the firm, trading activity remained cautious, with 524 decliners outpacing 306 gainers. Total volume stood at 3.21 billion shares worth RM5.04 billion.
Sector-wise, losses were led by telcos, down 2.5 per cent, consumer down 1.6 per cent and technology down 1.2 per cent, while transportation rose 0.9 per cent and real estate investment trusts added 0.1 per cent
Rakuten Trade expects the FTSE Bursa Malaysia KLCI to trade within the 1,500 to 1,510 range today amid persistent global uncertainties and the absence of strong domestic catalysts.
Overnight, Wall Street closed higher despite renewed US-China trade tensions. The Dow Jones Industrial Average rose 0.08 per cent, while the Nasdaq and S&P 500 added 0.67 per cent and 0.41 per cent respectively.
Regional markets, however, closed mostly lower, with Hong Kong's Hang Seng Index down 1.20 per cent and Japan's Nikkei 225 falling 1.22 per cent.
On the corporate front, Yinson Holdings Bhd posted a 66.1 per cent jump in full-year net profit to RM1.25 billion, lifted by a tax gain on its Netherlands offshore operations.
Capital A Bhd returned to profitability with a net profit of RM689.6 million in the first quarter, reversing a RM91.5 million loss a year earlier, supported by gains across travel, logistics and other services.
CIMB Group Holdings Bhd reported a 1.9 per cent rise in first-quarter net profit to RM1.97 billion, while Mah Sing Group Bhd saw earnings increase 10 per cent to RM66 million.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
39 minutes ago
- New Straits Times
Lee rode Korean voter discontent to power, now faces policy test
SOUTH Korea's new President Lee Jae-myung rode a wave of voter anger against the December martial law attempt by his ousted predecessor, but his ability to lead will be judged by the strength of his policies. With preliminary results suggesting a comfortable win over Kim Moon-soo, the candidate for the conservative People Power Party, Lee will take office with a resounding mandate and his Democratic Party in control of parliament. Healing the political rifts that led to former president Yoon Suk Yeol's shock martial law and its divisive aftermath will be a tall order. Analysts say both candidates were vague on their policy plans during the campaign, and Lee Jun-han, a political science professor at Incheon National University, said the results are more an indictment of Yoon and his PPP's poor performance than an endorsement of the DP. He said Kim, who opposed Yoon's impeachment, was unprepared and the PPP did not show remorse after the martial law. "(The next president) should properly interpret that the people's choice has been one-sided and show that in the government's operation or politics in the future," he said. "If they don't, public sentiment will fluctuate quickly." While Lee has had his eye on the presidency for years, there have been major developments since he narrowly lost to Yoon in the 2022 election, said Kim Jun-seok, a political science professor at Dongguk University. "Now he has restoration of democracy as one of his tasks," Kim said. "Nonetheless, there are huge challenges faced by South Korea. A grim outlook on the economy that's projected to grow maybe less than one per cent. "And there's a crisis outside, dealing with Trump. He has a lot of work to do." Voters said they were looking for the winner of the snap election to calm the economic and political shocks that have roiled the country since Yoon's Dec 3 martial law decree led to months of economic downturn and sparked nationwide protests. Many complained, however, about a lack of specifics in policy debates. Lee has pledged to draft a second supplementary budget for the year as soon as the election is over, and promised vouchers to help businesses and subsidies for childcare, youth, and the elderly to address growing discontent around tightening purse strings. His camp says they intend to seek more time to negotiate on trade with US President Donald Trump, but it is unclear how any request for an extension of the tariff deadline will be received in Washington. With a rise in anti-China sentiment among South Koreans and Trump's push to isolate Beijing, Lee must also tread carefully with any plans to improve ties with China. Lee has also shown sensitivity to the political winds, moderating some of his stances on China, Japan, and populist economic policies such as universal income ahead of the election. "I hope he will resuscitate the economy and get rid of insurrection forces," said Im Young-taek, 64, a small business owner. "And I do hope he will make people comfortable. "Things may not be easy with Trump, but I hope he will hire capable aides and settle the issues." Lee's Democratic Party will control Parliament, easing the passage of legislation and budgets after years of deadlock between Yoon and the legislature. That may do little to soothe political polarisation, however, with conservatives warning that Lee and the DP will steamroll over any opposition. Incheon University's Lee said: "Since they are the absolute majority, there seems to be few checks and balances to stop them." In May, a DP-led committee passed legislation aimed at changing an election law that Lee has been convicted of violating. They have also promised to pass legislation clarifying what protections presidents have from criminal investigations, a move seen as trying to reduce Lee's exposure to other charges.
Malaysian Reserve
an hour ago
- Malaysian Reserve
SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates GTLS, FLS, PHX, AVDX on Behalf of Shareholders
NEW YORK, June 4, 2025 /PRNewswire/ — Halper Sadeh LLC, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to: Chart Industries, Inc. (NYSE: GTLS)'s sale to Flowserve Corporation for 3.165 shares of Flowserve common stock for each share of Chart common stock. If you are a Chart shareholder, click here to learn more about your legal rights and options. Flowserve Corporation (NYSE: FLS)'s merger with Chart Industries, Inc. Upon completion of the proposed transaction, Flowserve shareholders will own approximately 46.5% of the combined company. If you are a Flowserve shareholder, click here to learn more about your rights and options. PHX Minerals Inc. (NYSE: PHX)'s sale to WhiteHawk Income Corporation for $4.35 per share. If you are a PHX shareholder, click here to learn more about your rights and options. AvidXchange Holdings, Inc. (NASDAQ: AVDX)'s sale to TPG for $10.00 per share in cash. If you are an AvidXchange shareholder, click here to learn more about your legal rights and options. Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures and information concerning the proposed transaction, or other relief and benefits on behalf of shareholders. We would handle the action on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses. Shareholders are encouraged to contact the firm free of charge to discuss their legal rights and options. Please call Daniel Sadeh or Zachary Halper at (212) 763-0060 or email [email protected] or [email protected]. Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors. Attorney Advertising. Prior results do not guarantee a similar outcome. Contact Information:Halper Sadeh LLCDaniel Sadeh, Halper, Esq.(212) 763-0060[email protected][email protected]
The Star
an hour ago
- The Star
Continuity or reset? Japan, China seek clues to S. Korea President Lee Jae-myung's foreign policy
TOKYO/CHONGQING: South Korea's East Asian neighbours Japan and China on Wednesday (June 4) quickly congratulated President Lee Jae-myung on his resounding election win, even as both countries are closely watching for clues to how the liberal leader will approach bilateral relations. This scrutiny stems from perceptions that South Korean diplomacy oscillates wildly, depending on the ruling party of the day. Liberals are judged to be hostile towards Japan and friendly towards China and North Korea, while conservatives hold an opposite view. Ties between Tokyo and Seoul plunged into a deep freeze under the previous liberal president Moon Jae-in, only to thaw rapidly under Lee's ousted predecessor, Yoon Suk Yeol, who is now facing insurrection charges for his martial law debacle. Lee had previously described Japan as an 'enemy nation' and gone on a 24-day hunger strike to oppose Yoon's conciliatory policies, which he termed 'humiliating diplomacy'. He has also criticised Yoon for worsening ties with China by moving closer to the United States on positions such as Taiwan, which Beijing regards as part of its territory to be reunited with. But Lee adopted a more centrist agenda on the campaign trail, saying that he wanted to repair fraying ties with China, while also insisting that he held a 'very favourable impression of the Japanese people'. His approach to this diplomatic tightrope will have ramifications from Washington to Tokyo, as the US corrals its Indo-Pacific allies for support in its big-power competition with China. Both Japan and South Korea are US security allies, while China is their largest trading partner. On June 4, Lee said: 'I will strengthen cooperation between South Korea, the US and Japan, based on the solid South Korea-US alliance, and will approach relations with neighbouring countries from the perspective of national interest and practicality.' All eyes will be on Lee's likely diplomatic debut on June 15 at the Group of Seven (G-7) summit in Canada, where South Korea has been invited as an observer. There, he could potentially meet bilaterally with US and Japanese leaders. Amid the diplomatic ambiguity, analysts in China were sanguine about Beijing-Seoul ties, while Japanese observers were more circumspect over bilateral relations. In a congratulatory message to Lee, Chinese President Xi Jinping stressed that he attaches 'great importance' to China-South Korea relations. The two countries, he said, are close neighbours and partners that have overcome ideological and social differences in the 33 years since establishing diplomatic ties to develop stable and healthy relations. This partnership 'not only improved the well-being of the citizens in both countries, but also promoted regional peace and stability', Xi added, according to state media reports. 'China is willing to work with South Korea to adhere to the original intention of the establishment of diplomatic ties and firmly follow the rules of good neighbourliness and friendship,' Xi said, noting that this is to the benefit of both countries at a time of growing regional and international uncertainty. Over in Tokyo, Japanese Prime Minister Shigeru Ishiba delivered a similar message of working together as 'partners' and close neighbours to tackle global challenges, as the countries celebrate the 60th anniversary of bilateral ties in 2025. 'The importance of holding summit talks at an early date and engaging in 'shuttle diplomacy' won't change,' Ishiba said, referring to the practice of the leaders regularly visiting each other's countries, while expressing his hopes to 'further invigorate bilateral exchanges' at all levels. Yet, Japanese officials are wary that Lee's election would portend a dramatic shift in bilateral ties, given that he has said he would broach wartime issues over Japan's colonial rule of the Korean peninsula from 1910 to 1945, and the territorial dispute over the Dokdo/Takeshima islets. This is especially since 2025 marks the 80th year since Japan's wartime surrender, an anniversary year that could be weaponised to stoke tensions by raising historical grievances. Japan's position is that all wartime reparations have been 'completely and finally' settled under a 1965 agreement to normalise ties, with Tokyo paying US$500 million (worth about US$5 billion today, or S$6.4 billion) in grants and low-interest long-term loans to South Korea. But past South Korean administrations have repeatedly brought up historical issues, including comfort women and wartime labour, casting a pall over bilateral relations. 'Even if the administration takes a conciliatory stance towards Japan at the start, it could gradually evolve into a hardline stance towards Japan,' a Japanese Foreign Ministry official was quoted as telling the Mainichi newspaper. Another official was cautiously optimistic, saying it would be foolhardy to stoke anti-Japan sentiment at this time, given the positive public opinion. North Korea's military involvement in Russia's invasion of Ukraine also means that geopolitical calculations would have changed, the official was cited as saying. Kobe University's Professor Kan Kimura told The Straits Times that the way forward is unpredictable, given that invoking history would be a non-starter for Japan. 'Lee's language over history and territorial disputes is going to be provocative,' he said. 'The question is whether both countries can delink history with economic and security issues.' He saw it in Seoul's interests to maintain close ties with Tokyo, saying: 'Given that South Korean public opinion towards China is worsening, North Korea is refusing to engage in dialogue with South Korea, and the US is exerting pressure including through tariffs, objectively speaking, South Korea has almost no diplomatic options.' Analysts in China told ST that ties will likely thaw between Beijing and Seoul under Lee, whom they expect will strike a better balance amid US-China competition. Associate Professor Zhang Guangxin at Zhejiang Gongshang University's East Asian Institute in Hangzhou noted that despite Yoon's pivot to the US that had chilled bilateral relations with China, trade between the two countries remains robust. Exports from South Korea to China grew 6.6 per cent in 2024 from a year ago, which underscores the robust trade relations, Prof Zhang noted. 'Lee's clear victory over the People Power Party (which Yoon belonged to) shows the South Korean public's desire for economic stability,' he said. Professor Kim Chang Hyun of the China-Europe International Business School in Shanghai, meanwhile, said business elites in South Korea no longer see China solely as a big market for their products but also as 'an important partner to learn from', pointing to China's advances in green technology and artificial intelligence. The two experts said that public opinion in South Korea towards the US is likely deteriorating, given US President Donald Trump's demands that Seoul pay more for defence, and the threat of 'reciprocal tariffs' of 25 per cent. Students from South Korea – the third-largest source of foreign students to the US – are also facing heightened uncertainty over Trump's immigration policies. 'There will be some rebalancing in public opinion in South Korea towards the US now,' Prof Kim said. - The Straits Times/ANN
