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Malay Mail
a day ago
- Business
- Malay Mail
Bursa Malaysia in correction mode next week, say analysts, as traders eye break above 1,535
KUALA LUMPUR, June 1 — The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade within a volatile range of 1,500 to 1,530 next week, pending the emergence of new market-moving developments. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said market sentiment will remain subdued, with investors maintaining a wait-and-see approach. 'From a technical standpoint, the FBM KLCI is in a correction phase, trading below its key moving averages, with technical indicators pointing to short-term weakness. 'Nonetheless, there are signs that the index may be positioning for a recovery, particularly if macroeconomic pressures subside and regional sentiment improves,' he told Bernama. Thong said a clear break above the 1,535 level could confirm a shift towards bullish momentum. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said the FBM KLCI is expected to trade in a narrow range in the absence of clear catalysts. 'Should the index fall below the 1,500 level, bargain hunting may emerge — especially in undervalued large-cap names. 'Volatility may also increase due to several external triggers. South Korea's presidential election on Tuesday could influence regional sentiment, while investors will be closely monitoring a series of economic data releases from China, Japan, South Korea, Taiwan, and Malaysia — including updates on exports, inflation, and purchasing managers' indices,' he said. Mohd Sedek noted that Bursa Malaysia will see a shortened four-day trading week next week, due to the long weekend, which could lead to thinner trading volumes and heightened market volatility. 'Investors should remain vigilant, maintain diversified portfolios, and be prepared for intermittent of volatility as uncertainty continues to shape the investment landscape,' he added. Mohd Sedek said a US appeals court has stayed a prior ruling that had blocked President Donald Trump's use of reciprocal tariffs under the 1977 International Emergency Economic Powers Act, raising fresh questions about the future direction of US trade enforcement. Bursa Malaysia Bhd and its subsidiaries will be closed on June 2, 2025, in conjunction with the official birthday of His Majesty Sultan Ibrahim, King of Malaysia. The exchange and its subsidiaries will resume operations on Tuesday, June 3, 2025. For the week just ended, Bursa Malaysia retreated from earlier gains and ended lower on Friday weighed down by continued selling pressure in heavyweight and mid-cap stocks amid downbeat regional sentiment, following the uncertainty surrounding US trade policy. On a Friday-to-Friday basis, the barometer index fell 27.03 points to 1,508.35 from 1,535.38 a week earlier. The FBM Emas Index dipped 174.25 points to 11,299.80, the FBMT 100 Index slipped 172.10 points to 11,061.00, and the FBM Emas Shariah Index declined 169.96 points to 11,256.26. The FBM 70 Index lost 148.75 points to 16,201.51, and the FBM ACE Index fell 64.91 points to 4,551.03. Across sectors, the Financial Services Index tumbled 262.04 points to 17,840.54, the Industrial Products and Services Index was 1.39 points easier at 152.65, and the Energy Index shed 2.73 points to 708.04. The Plantation Index shrank 122.46 points to 7,207.85 and the Healthcare Index dropped 16.94 points to 1,816.95. Turnover advanced to 14.80 billion units valued at RM12.78 billion from 14.05 billion units valued at RM11.28 billion in the preceding week. The Main Market volume improved to 7.21 billion units worth RM11.50 billion against 7.14 billion units worth RM10.06 billion. Warrants turnover expanded to 5.90 billion units worth RM721.75 million against 5.13 billion units worth RM645.54 million a week ago. The ACE Market volume narrowed to 1.66 billion units valued at RM543.90 million from 1.78 billion units valued at RM563.52 million. — Bernama
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Ringgit closes lower on market uncertainty
KUALA LUMPUR : The ringgit closed lower against the US dollar today amid renewed market uncertainty after a US federal appeals court granted the White House's request to temporarily pause a lower-court ruling that struck down President Donald Trump's tariffs on imports into the country. Earlier, the US court of international trade had ruled that the tariffs announced by Trump were illegal. However, the Trump administration challenged the trade court ruling, which has briefly restored the tariffs while the appeal process runs its course. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Sedek Jantan said while the legal process unfolds, businesses and markets are left navigating a more complex and uncertain global trade landscape. 'Investors increasingly recognise that markets are now entering a more prolonged period of uncertainty. 'Sentiment has turned more defensive as capital allocators reassess both external developments and domestic dynamics,' he told Bernama. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said moving forward, market participants will closely monitor the legal trajectory of US tariff policies, which may influence broader market sentiment. At 6pm, the local note decreased to 4.2530/4.2605 versus the greenback from yesterday's close of 4.2390/4.2475. At the close, the ringgit traded lower against a basket of major currencies. It weakened versus the Japanese yen to 2.9531/2.9585 from yesterday's close of 2.9188/2.9249, slipped vis-à-vis the euro to 4.8169/4.8254 from 4.7803/4.7899 and depreciated against the British pound to 5.7284/5.7385 from 5.7091/5.7205 previously. The local note also fell against its Asean peers. It slipped versus the Singapore dollar to 3.2938/3.3002 from 3.2853/3.2921 yesterday and dropped against the Indonesian rupiah to 260.4/261.1 from 259.9/260.5 previously. The ringgit also inched down against the Thai baht to 12.9507/12.9790 from 12.9321/12.9647 and slid vis-à-vis the Philippine peso to 7.62/7.64 from 7.60/7.62.
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Bursa ends on weak note amid subdued regional sentiment
KUALA LUMPUR : Bursa Malaysia failed to sustain earlier gains and ended the week on a weaker note, weighed down by continued selling pressure in heavyweight and midcap stocks amid downbeat regional sentiment. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said regional markets slipped after US Treasury secretary Scott Bessent announced that trade talks with China had hit a standstill, reducing confidence in a long-term reduction in tariffs. 'Investors are closely monitoring the situation, as further developments in US-China trade relations could significantly impact global markets. 'We believe that geopolitical tensions and economic data offer little reassurance, Asian markets may remain volatile in the near term,' he told Bernama. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Sedek Jantan noted that despite a firmer overnight lead from Wall Street, the FTSE Bursa Malaysia KLCI (FBM KLCI) failed to sustain its early gains, weighed down by continued foreign fund outflows and persistent macroeconomic and political uncertainties. 'The index has now erased much of its earlier momentum, sending the one-month return to (-2%) and hovering just above the key psychological threshold of 1,500. 'As of yesterday, foreign investors had extended their net selling streak to 10 consecutive sessions,' he added. He said investor sentiment remains cautious as markets weigh recent changes in ministerial leadership and the potential for adjustments in the Cabinet, with attention focussed on policy continuity and Malaysia's broader economic direction. On the global front, Sedek said uncertainty surrounding US trade policy continues to cloud market visibility. He said a US appeals court has stayed a prior ruling that had blocked President Donald Trump's use of reciprocal tariffs under the 1977 International Emergency Economic Powers Act, raising fresh questions about the future direction of US trade enforcement. 'While the legal process unfolds, businesses and markets are left navigating a more complex and uncertain global trade landscape,' he added. At 5pm, the FBM KLCI slipped 10.63 points, or 0.70% to 1,508.35 from yesterday's close of 1,518.98. The benchmark index opened 2.24 points higher at 1,521.22, and subsequently hit the day's high of 1,522.06 in early trade before losing its steady momentum to close at its intraday low. On the broader market, decliners outnumbered gainers 616 to 336, while 417 counters were unchanged, 1,025 untraded and 86 suspended. Turnover fell to 3.21 billion units worth RM5.04 billion compared with yesterday's 3.30 billion units worth RM2.22 billion. Among heavyweights, Maybank shed nine sen to RM9.78, Tenaga Nasional slipped eight sen to RM14, and IHH Healthcare eased one sen to RM6.90. CIMB was five sen higher at RM6.93 while Public Bank was flat at RM4.31. In active trade, KPJ Healthcare lost 24 sen to RM2.72, Velesto inched down 0.5 sen to 18 sen, Tanco fell four sen to RM1, while Eco-Shop and NationGate gained seven sen each to RM1.26 and RM1.51, respectively. On the index board, the FBM Emas Index tumbled 82.53 points to 11,299.80, the FBM ACE Index fell 41.13 points to 4,551.03, and the FBMT 100 Index slid 81.02 points to 11,061.00. The FBM Emas Shariah Index lost 109.57 points to 11,256.26 and the FBM 70 Index sank 130.80 points to 16,201.51. By sector, the financial services index slipped 53.03 points to 17,840.54, the industrial products and services index edged down 0.37 of-a-point to 152.65, the energy index eased 0.14 of-a-point to 708.04, while the plantation index dipped 86.10 points to 7,207.85. The Main Market volume improved to 1.88 billion units valued at RM4.82 billion against yesterday's 1.56 billion units valued at RM1.93 billion. Warrants turnover declined to 1 billion units worth RM111.49 million from 1.37 billion units worth RM164.04 million previously. The ACE Market volume dwindled to 318.43 million shares worth RM107.68 million from 364.60 million shares worth RM120.88 million yesterday. Consumer products and services counters accounted for 354.31 million shares traded on the Main Market, industrial products and services (280.66 million), construction (110.97 million), technology (208.24 million), SPAC (nil), financial services (213.49 million), property (181.60 million), plantation (36.80 million), REITs (24.92 million), closed/fund (23,900), energy (139.78 million), healthcare (126.76 million), telecommunications and media (100.57 million), transportation and logistics (21.18 million), utilities (90.07 million), and business trusts (11,200).
Yahoo
4 days ago
- Business
- Yahoo
With US backing down and $5 billion from MAS to be deployed, UOB Kay Hian raises end-2025 target for STI to 4,054 points
'It will be critical for the authorities to ensure that the $5 billion is not a one-off' With trade tensions easing somewhat, and with the central bank likely to shortlist managers for the $5 billion fund to boost the local bourse, things are looking cheerier for the Singapore market, which is marked by "quality defensive names" with valuations not quite "stretched". "In light of the US backing down from a full-scale tariff war with China, as well as the injection of liquidity from the MAS in 2H25, we have become more bullish on the Singapore market," suggests a team of UOB Kay Hian analysts led by Adrian Loh. As such, UOB Kay Hian has raised its year-end Straits Times Index forecast from 3,720 points to 4,054 points, based on 1.2% earnings growth for the index stocks and implies a PE multiple of 13.4x. Top large caps favoured by UOB Kay Hian include CapitaLand Ascott REIT, CapitaLand Integrated Commercial Trust C38u, First Resources Eb5, Keppel, Oversea-Chinese Banking Corp, SATS, Sea, Sembcorp Industries U96, Singapore Telecommunications Z74 and Yangzijiang Shipbuilding. Now, what might be of equal interest is that of smaller cap counters. UOB Kay Hian figures that fund managers given their share of the $5 billion mandate will start to deploy in the last quarter of the year. The list of smaller cap names flagged by UOB Kay Hian includes: Centurion Corp, for its inelastic demand for its accommodation assets, backed by construction spending tailwinds in Singapore. ChinaSunsine Market, the global leader in producing rubber accelerator, whose net cash is equivalent to 72% of its market cap. ComfortDelGro, which operates a defensive business model with strong overseas growth while giving an attractive yield of 6.1%. CSE Global, whose strong order book of $616 million provides healthy forecast revenue growth to 2027. Food Empire, which is expanding strongly in its various key markets including Vietnam and Central Asia while keeping good cost control. Frencken Group, for its stable to higher revenue forecasts in all segments, amid a brighter outlook for the semiconductor market. Hong Leong Asia, which is riding stronger construction demand across Singapore & Malaysia. Oiltek International, for its asset-light business model with high ROE, while capturing exposure to sustainable aviation fuel PropNex, which is seeing a favourable property market outlook this year, with prospects of a special dividend and "strong" upcoming 1HFY2025 earnings. Sheng Siong Group, which is generating volume growth via six new outlet openings in 2025. SIA Engineering, which is seeing limited impact from the trade war, benefiting from strong demand and trading at a level with net cash equal to 23% of its market cap. Valuetronics, with net cash at more than 73% of its market cap while capturing the AI boom. However, UOB Kay Hian warns that despite the impending moves, there are some issues that got to be addressed. For one, there was an absence of any role for market makers which UOB Kay Hian says is integral in maintaining liquidity and efficiency in a well-functioning stock market. "Going forward, it will be critical for the authorities to ensure that the $5 billion is not a one-off and that as the market grows, it will be able and willing to continue to lend its support," says UOB Kay Hian. See Also: Click here to stay updated with the Latest Business & Investment News in Singapore Brokers' Digest: CSE Global, Geo Energy, Venture Corp, Prime US REIT Singapore maintains previously lowered full-year GDP forecast at 0 - 2% on 'significant uncertainty' ahead Analysts increase DBS's TPs, issue upgrades after 1QFY2025 earnings surpass estimates Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World Get in-depth insights from our expert contributors, and dive into financial and economic trends Follow the market issue situation with our daily updates Or want more Lifestyle and Passion stories? Click here
Free Malaysia Today
4 days ago
- Business
- Free Malaysia Today
Bursa bucks regional trend to close lower amid lack of fresh local leads
KUALA LUMPUR : Bursa Malaysia bucked the regional trend to settle lower today, as selling pressure in selected banking heavyweights dampened sentiment in the absence of fresh domestic catalysts, coupled with an unexciting batch of corporate earnings releases, said an analyst. Apex Securities Bhd head of research Kenneth Leong expects that the key index may attempt to find stability above the 1,500 level on the back of potential bargain hunting, going forward. 'Still, we believe that any potential gains could be capped by the resumption of foreign funds outflow. 'Looking ahead, investors will be keeping a close watch on the second reading of the US first-quarter 2025 gross domestic product data to be released later tonight,' he told Bernama. Domestically, Leong said the key focus remains on the ongoing corporate earnings releases. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Sedek Jantan said the release of the latest US Federal Reserve (Fed) minutes proved pivotal. 'The Fed's reaffirmation of its cautious stance – highlighting persistent inflationary pressures and resilient US macroeconomic data – has effectively tempered market expectations for a near-term rate cut. 'This recalibration in rate outlook translated into upward pressure on global yields, a dynamic to which Malaysia's banking-heavy benchmark index remains acutely sensitive,' he told Bernama. Sedek said the uplift in regional equities was underpinned by a US federal court's decision to block president Donald Trump's proposed 'Liberation Day' tariffs, which materially improved global risk appetite. However, domestic sentiment remained subdued, weighed down by profit-taking in heavyweight banking counters. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 4.50 points, or 0.29%, to 1,518.98 from yesterday's close of 1,523.48. The benchmark index opened 2.12 points higher at 1,525.60 and fluctuated between 1,518.38 and 1,526.94 throughout the day. In the broader market, decliners beat gainers 478 to 466, while 460 counters were unchanged, 982 untraded and 110 suspended. Turnover expanded to 3.30 billion units worth RM2.22 billion compared with yesterday's 2.50 billion units worth RM2.03 billion. Among heavyweights, Maybank gained 3 sen to RM9.87 and CIMB increased 1 sen to RM6.88. Public Bank and Tenaga Nasional fell 2 sen each to RM4.31 and RM14.08 respectively, while IHH Healthcare was flat at RM6.91. As for active stocks, Permaju inched down 0.5 sen to 1 sen and NationGate dropped 14 sen to RM1.44, while Velesto and NexG added 1 sen each to 18.5 sen and 37.5 sen respectively. MyEG was flat at 89 sen. On the index board, the FBM Emas Index slid 14.84 points to 11,382.33, the FBM ACE Index rose 42.82 points to 4,592.16, but the FBMT 100 Index fell 19.34 points to 11,142.02. The FBM Emas Shariah Index lost 9.68 points to 11,365.83 while the FBM 70 Index perked up 25.65 points to 16,332.31. By sector, the financial services index slipped 64.33 points to 17,893.57, the industrial products and services index edged up 0.32 of-a-point to 153.02, the energy index put on 1.67 points to 708.18, while the plantation index added 1.40 points to 7,293.95. The Main Market volume improved to 1.56 billion units valued at RM1.93 billion against yesterday's 1.34 billion units valued at RM1.80 billion. Warrants turnover swelled to 1.37 billion units worth RM164.04 million from 815.91 million units worth RM113.60 million previously. The ACE Market volume advanced to 364.60 million shares worth RM120.88 million from 346.43 million shares worth RM119.44 million yesterday. Consumer products and services counters accounted for 354.51 million shares traded on the Main Market, industrial products and services (317.02 million), construction (98.30 million), technology (235.43 million), SPAC (nil), financial services (70.33 million), property (170.33 million), plantation (14.93 million), REITs (88.90 million), closed/fund (2,700), energy (150.03 million), healthcare (36.24 million), telecommunications and media (56.54 million), transportation and logistics (15.65 million), utilities (34.86 million), and business trusts (23,400).
