Slight rebound as Bursa reopens from holiday weekend
KUALA LUMPUR: Malaysian equities rebounded on Tuesday following an extended weekend, although the market is expected to remain in consolidation moade as it awaits more clarity on the global trade situation.
At the open, the FBM KLCI was up 4.37 points to 1,512.72, pulled higher by heavyweight stocks that were oversold at last Friday's close.
TA Securities Research said blue chips are expected to remain in profit-taking consolidation mode this week as investors should remain cautious while they await further developments regarding the judgment against US President Donald Trump's trade policies.
Meanwhile, uncertainty surrounding a potential cabinet reshuffle on the local political scene, and a lack of strong buying catalysts should also keep investors on the sidelines, it said.
The broker said borth short- and medium-term technical momentum and trend indicators on the FBM KLCI are turning increasingly bearish.
"Immediate index resistance is kept at 1,564 with next upside hurdles seen at the recent high of 1,586, followed by 1,610 ahead. Immediate support
is maintained at 1,490, while stronger supports can be found at 1,465 and 1,444," it said in its market commentary.
Among the heavyweights leading the rally, PETRONAS Dagangan rose 62 sen to RM20.32, Kuala Lumpur Kepong gained 40 sen to RM19.88 and Hong Leong Bank added 14 sen to RM19.72.
Top actives were Harvest Miracle unchanged at 18 sen, Bintai Kinden down 0.5 sen to seven sen and Alam Maritim unchanged at three sen.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
2 hours ago
- New Straits Times
Asia could outstrip Europe as key beneficiary of US capital flight
AS global investors consider reducing their exposure to United States financial assets, the key question is where money flowing out of the US will go. While Europe may be the obvious destination, relative value metrics may favour emerging Asia. Even though US equities have recovered from the steep losses suffered in the week following US President Donald Trump's announcement of his "Liberation Day" tariffs, the same cannot be said of the US bond market. Since hitting a recent low on April 4, the 10-year Treasury yield has spiked by around 50 basis points, with bond investors demanding more compensation for the risk of holding longer-dated US debt. Worryingly, the benchmark Treasury yield has surged higher than nominal US gross domestic product growth — a key risk measure. Additionally, the usual positive correlation between Treasury yields and the US dollar has broken off, as rising yields are no longer attracting money to the "safest" asset in the world. The euro's almost 10 per cent rise against the dollar this year suggests that a significant portion of the capital flowing out of the US is going to Europe, likely driven by concerns about US policy as well as expectations of higher regional growth. Further monetary easing by the European Central Bank should promote economic activity, as should the expected surge in fiscal spending. The fiscal splurge is already offering a boost to European equities — the surprise winner thus far in 2025 — especially defence, industrial and technology stocks. Meanwhile, in emerging Asia — another potential destination for US capital outflows — the debt picture is better and the growth outlook is stronger. Government debt in many Asian countries is low, ranging from 37 per cent of GDP in Indonesia to around 85 per cent in China and India. Benchmark bond yields across the region have been declining since October 2023, speaking to fixed income investors' limited concerns about Asian countries' fiscal situations. In fact, yields in China, Thailand and Korea are all below those in the US, though those in Indonesia and India remain higher. Modest debt burdens mean there is also plenty of room for more fiscal stimulus in many countries, which could improve consumption, while the benign inflation environment should enable central banks in the region to continue cutting rates to stimulate growth. Emerging Asia also offers far more high-growth, technology companies than Europe. The release of the affordable Chinese artificial intelligence model, DeepSeek, Beijing's focus on semiconductors and advanced manufacturing and the country's electric vehicle dominance could all attract tech-focused investors looking for an alternative to the US. Even though European equities have outperformed their US counterparts significantly in 2025, the 12-month forward price-to-earnings multiple of the major European index, the STOXX50, is considerably lower than that of the S&P 500, at 15.4x and 21.0x, respectively, as of May 23. But the major emerging Asia equity index, the MSCI Asia ex Japan, is even cheaper at 13.4x. Moreover, earnings growth forecasts are higher in Asia than in either the US or Europe through 2026. Finally, reallocation of assets from the US could have a bigger positive impact on Asia than on Europe because of their relative sizes. Let's say five per cent of the US free floating market cap of around US$58 trillion, or roughly US$3 trillion, moves out. That would represent 36 per cent of Asia's market cap, but only 22 per cent of Europe's. Caution remains warranted, though. Asian nations' trade negotiations with the US will likely still encounter twists and turns, and increasing protectionism could hinder the region's more export-oriented economies. The capital flowing into emerging Asia is a double-edged sword because of the impact on Asian currencies versus the US dollar. If Asian currencies strengthen much more, the region's export engine could stutter. Investors, thus, have to keep a close eye on macroeconomics, geopolitics and policy statements, not just valuation metrics. But given emerging Asia's benign debt environment and positive growth outlook, both the region's equity and fixed income markets have the potential to benefit from the death of American exceptionalism.
New Straits Times
4 hours ago
- New Straits Times
Anwar shares royal compliment on Malaysia's medical expertise
PETALING JAYA: Sultan of Brunei Sultan Hassanal Bolkiah praised the quality and expertise of doctors at the National Heart Institute (IJN) after receiving treatment there. Prime Minister Datuk Seri Anwar Ibrahim conveyed this during the Higher Education Ministry's Ilmuan Malaysia Madani forum titled "Transport for the People: Balancing Affordability, Quality and Sustainability of Public Transport." "His Majesty told me that, as someone with exposure to and experience with some of the world's best medical centres, he was very satisfied with the quality of service, excellence, and expertise of our doctors at IJN," he said. Anwar added that while the government welcomes criticism, Malaysians should also recognise national achievements, especially in healthcare. "So while we allow criticism, which is not a problem, we must also recognise the strengths we have, and there must be the drive to push ourselves to do better," he said. The Sultan of Brunei was in Kuala Lumpur for the 46th Asean Summit with other regional leaders. On May 27, he was reportedly feeling fatigued and was advised by health experts to rest at IJN. Anwar also spoke about his conversation with President of Guinea-Bissau General Umaro Sissoco Embaló, during which he asked why Malaysia was chosen despite limited bilateral trade. "His answer was that he follows developments here and sees Malaysia as a country on the rise, with significant potential. That's why he chose to come," he said. Embaló arrived today for a three-day visit—his first since taking office as president in February 2020. Malaysia and Guinea-Bissau established diplomatic relations in November 1974. In 2024, Malaysia's total trade with Guinea-Bissau reached RM4.1 million, with Malaysian exports amounting to RM4.04 million and imports standing at RM0.06 million.
The Sun
5 hours ago
- The Sun
US private sector hiring sharply slows, drawing Trump ire
WASHINGTON: US private sector hiring hit its slowest pace since early 2023 in May, according to data from payroll firm ADP on Wednesday, significantly missing expectations in a month where all eyes are on the effects of President Donald Trump's trade war. Private sector employment rose by 37,000 jobs last month, slowing from the 60,000 figure in April and swiftly drawing a fiery response from Trump on social media. ''Too Late' Powell must now LOWER THE RATE,' Trump said on his Truth Social platform, blasting Federal Reserve Chair Jerome Powell whom he has repeatedly pressured to cut the benchmark lending rate. While the US central bank has started bringing down interest rates from the high levels of recent years, officials have proceeded cautiously as they monitor progress in cooling stubborn inflation. When inflation is low, central banks may opt to reduce rates, which typically encourages economic activity by reducing borrowing costs. But Trump's frustration comes at a time when 'hiring is losing momentum' after a strong start to this year, according to ADP chief economist Nela Richardson. She added in a statement that pay growth was also 'little changed in May.'
