Latest from BusinessToday
BusinessToday
4 hours ago
- Business
- BusinessToday
August Volatility Looms For KLCI
Bursa Malaysia Global trade negotiations and upcoming central bank decisions are taking center stage, influencing market movements across Asia, the US, and Malaysia. Investors are navigating a complex landscape marked by a crucial tariff deadline, significant earnings reports, and ongoing policy reviews. Asia Markets Dip Amid Caution Ahead of Key Events Asian markets largely ended lower last week, pulling back from recent rallies driven by optimism over US trade talks and strong second-quarter earnings from Wall Street. Momentum faded as caution set in ahead of several pivotal events: a critical tariff deadline on August 1st, the Federal Open Market Committee (FOMC) policy decision on July 31st, and a slew of major US economic data releases and corporate earnings. US Markets buoyed by Earnings and Trade Hopes In contrast, US markets saw a positive finish, with the S&P 500 rising 0.4% to notch another record close and the Dow Jones Industrial Average jumping 208 points. This ascent was primarily lifted by continued optimism surrounding the earnings season. So far, 80% of S&P 500 companies reporting have surpassed forecasts, with earnings growth tracking at a robust 7.7%, significantly higher than the 5.8% expected at the start of July. Markets also found support from positive trade developments. On July 28th, the US and the European Union reached a hard-fought trade deal, which will see the bloc face 15% tariffs on most of its exports, including automobiles, but crucially staving off a full-blown trade war. This agreement comes less than a week before President Donald Trump's higher tariffs were set to take effect. The week ahead for US investors will be dominated by the busiest stretch of the earnings season, with key reports from tech giants like Microsoft, Meta, Apple, and Amazon, along with Boeing, Procter & Gamble, and numerous other prominent companies. On the macro front, attention will be on the FOMC's policy decision (expected to hold rates steady between 4.25%-4.50% according to market analysts), the advance estimate for US Q2 GDP (forecast to rebound to 2.5%), ADP employment figures, monthly payrolls, and ISM manufacturing data. KLCI Pressured by Local and Global Headwinds The Kuala Lumpur Composite Index (KLCI) mirrored the broader Asian sentiment, falling 6.6 points to close at 1,533.8. The local benchmark was particularly weighed down by a sell-off in Tenaga Nasional Berhad (TNB) shares after the utility giant was slapped with a fresh RM840.13 million tax notice from the Inland Revenue Board (IRB) for the Year of Assessment (YA) 2022. This comes shortly after TNB lost a significant RM1.25 billion tax dispute for YA 2018 in the Federal Court earlier this month. Sentiment was further dampened by uncertainty surrounding the US-Malaysia trade deal. Malaysia's firm stance on non-tariff barriers reportedly risks excluding it from favorable terms already secured by ASEAN peers such as Vietnam, the Philippines, and Indonesia, adding to concerns about its trade competitiveness. Foreign investors continued their net selling, marking a third consecutive week of outflows with a net selling of -RM137 million last week. This brings the July month-to-date net outflow to -RM579 million and the year-to-date figure to a substantial -RM12.7 billion. In contrast, local institutions emerged as net buyers, recording +RM93 million for the week (though their weekly net flow was -RM15 million due to the accounting of market transactions, July MTD: +RM506 million; YTD: +RM10.97 billion), and local retailers also showed resilience with +RM18 million (weekly: +RM106 million, July MTD: +RM73 million; YTD: +RM1.72 billion). Technical Outlook and Market Outlook HLIB Research indicates that the KLCI appears to have found temporary support after rebounding from the 1,510 level. The index remains on the cusp of a potential bullish triangle breakout, provided it avoids a decisive fall below 1,510 and 1,520. A breakout above the downtrend line near 1,551 could revive bullish momentum, targeting resistances at 1,563 (200D MA) and 1,575 (50W MA). Conversely, a significant drop below 1,510 could trigger a deeper pullback towards 1,500 and 1,488. For the upcoming week, the KLCI is expected to trade range-bound between 1,518 and 1,551 as investors digest the FOMC outcome and the ongoing US trade negotiations, including those with Malaysia. Caution is likely to prevail amid expectations of a soft August earnings season and the index's historical underperformance in August (with 10-year, 20-year, and 30-year average declines of -0.7%, -1.2%, and -2.2% respectively). Domestic headwinds from subsidy rationalisation and the potential expansion of the Sales and Service Tax (SST) could further dampen consumer sentiment and earnings visibility, adding to the market's cautious outlook. Related
BusinessToday
7 hours ago
- Health
- BusinessToday
Let's Break It Down, Let's End Hepatitis
By Dr Chook Jack Bee Every year, World Hepatitis Day on July 28 reminds us of a silent threat that continues to claim lives daily, viral hepatitis. This year's theme, 'Hepatitis: Let's Break It Down', urges us to dismantle the financial, social, and systemic barriers that delay diagnosis, stigmatise patients, and hinder access to care. It is time to confront hepatitis with facts, science, and action. Viral hepatitis is responsible for most severe liver diseases like liver cancer and liver cirrhosis (liver hardening that may result in liver failure). Effective prevention and cure are available for hepatitis B and C, respectively. Yet, 3,500 lives are lost every day due to the severe liver diseases. Alarmingly, most people infected with hepatitis do not even know it. They carry the virus unknowingly, allowing it to progress silently into end-stage liver disease. Dr Chook Jack Bee As a biomedical researcher and scientist, my team and I have been investigating hepatitis B virus (HBV) DNA for years, especially its connection to liver cancer and cirrhosis. To do this, we developed universal primer sets that work across all HBV strains, a crucial advancement in enabling laboratories to amplify and sequence the full HBV genome, especially in resource-limited settings where accessibility to genotype testing is rare. One of our key findings is that HBV DNA modification in certain HBV strains plays a significant role in how the virus behaves and may contribute to liver cirrhosis and liver cancer development. This could be a useful tool for early identification of who is at risk of progression to liver cancer, and therefore a more closely management could ensue. We also uncovered that consuming coffee 3 cups per day may reduce HBV viral replication, offering protective benefits against severe liver diseases in people with chronic hepatitis B. First, do not let cultural beliefs, misconceptions, or fear of a positive result stops you from getting tested. Early detection is the key to preventing liver cancer and accessing life-saving treatment. Hepatitis B is preventable through vaccination, especially the birth dose vaccine given within 24 hours of birth. Anti-HBV treatment is yet highly curable, but taking it may delay, if not prevent, progression to liver cancer. Good news is that hepatitis C is now >90% curable and the treatment is subsidised by Malaysia Government. We need to rethink the strategies for accessible testing for hepatitis B and C, especially in rural and high-burden communities. Providing diverse testing options can encourage greater participation in screening. An integrated approach of incorporating hepatitis testing into general health screenings like those for hypertension and diabetes, may further increase participation. Let's not wait. Let's break it down. Let's end hepatitis! The author is a Senior Lecturer at Sir Jeffrey Cheah Sunway Medical School & Sunway University Faculty of Medical and Life Sciences Related
BusinessToday
8 hours ago
- Business
- BusinessToday
Malaysia's Economy Projected To Grow 4.0-4.8% In 2025, BNM Governor
Malaysia's economy is projected to grow between 4.0% and 4.8% in 2025, underpinned by resilient domestic demand, a favourable labour market, and continued progress in investment activity, according to Bank Negara Malaysia (BNM). In its latest assessment, BNM highlighted that despite the shifting global economic landscape—marked by trade uncertainties, tariff developments, and geopolitical tensions—Malaysia is navigating these challenges from a position of strength. The central bank's updated forecast accounts for multiple tariff scenarios, ranging from sustained trade frictions to more optimistic outcomes from ongoing global negotiations. 'The Malaysian economy remains resilient despite global uncertainties,' said BNM Governor Dato' Sri Abdul Rasheed Ghaffour. 'This is, in part, the outcome of structural reforms that we have undertaken over the years. The sustained strength in economic activity and moderate inflation provides a supportive environment to pursue structural reforms for a more resilient and competitive Malaysia in the future.' Domestic demand remains the key growth driver, supported by steady labour market conditions and policy measures that continue to bolster private consumption. Investment activity is expected to gain momentum on the back of multi-year infrastructure projects and the realisation of approved investments, especially those aligned with national development plans. On the external front, BNM noted that favourable trade negotiation outcomes, sustained demand for electrical and electronic (E&E) products, and a robust rebound in tourism could provide additional upside to Malaysia's growth trajectory. Headline inflation for 2025 is expected to remain contained, averaging between 1.5% and 2.3%. This projection reflects a more moderate cost and demand outlook compared to earlier forecasts. The central bank expects limited inflationary pressure from global commodity prices and manageable domestic cost conditions, with minimal disruptions anticipated from local policy changes. The central bank emphasised that this environment—marked by stable prices and robust economic activity—offers the right conditions for Malaysia to advance its structural reform agenda, aimed at building a more competitive and future-ready economy. Related
BusinessToday
8 hours ago
- Business
- BusinessToday
CIMB Expected To Deliver "Decent" Performance In Q2
CIMB Group is expected to deliver a 'decent' performance for its second quarter of 2025, supported by stable net interest margins (NIMs) and strong non-interest income, according to a pre-results analysis by Maybank Research. The research firm has maintained a 'Hold' call on CIMB with an unchanged target price of MYR7.60, pending the official release of the group's results. CIMB Group is scheduled to announce its 2Q25 results on August 29, following the release of its Indonesian subsidiary, CIMB Niaga, on July 30. Maybank Research highlights several positive factors contributing to the bank's expected performance for the quarter ended June 30: Net interest margins (NIMs) are likely to have remained stable quarter-on-quarter, with positive traction in Malaysia and Singapore offsetting some compression in its Thai and Indonesian operations. The report anticipates a sequential increase in non-interest income, driven by sustained trading and foreign exchange activities. Asset quality is expected to remain stable, with credit costs likely to be benign. The report notes that CIMB's credit cost guidance of 25-35 basis points for the full year 2025 remains intact, suggesting a potential positive surprise as Maybank's own forecast for the year is a slightly higher 36 basis points. However, the report points to one area where results may be weaker than expected: loan growth. According to Maybank Research, the group has been cautious in lending to the corporate and commercial sectors due to competitive yields. This has led the research house to forecast a loan growth of 4.5% for the full year, below CIMB Group's own target of 5-7%. Despite the mixed outlook, Maybank Research is keeping its earnings forecasts unchanged, believing the positive elements of stable margins and strong non-interest income will support its existing assumptions for the group. The report concludes that while the group is positioned for stability in the near term, its 'Hold' rating reflects a cautious but fair valuation at this juncture. Related
BusinessToday
10 hours ago
- Business
- BusinessToday
Middle East Tensions And Maritime Disputes Among Key Issues In Dewan Rakyat
Malaysia's short- and long-term plans to address ongoing geopolitical tensions in the Middle East took centre stage in today's Dewan Rakyat sitting, as outlined in the Order Paper on Parliament's official website. Mohd Sany Hamzan (PH-Hulu Langat) raised the issue during the Minister's Question Time, seeking clarification from the Prime Minister on the government's approach to the matter. Also under the spotlight, Datuk Seri Dr Ronald Kiandee (PN-Beluran) questioned how the International Court of Justice's 2002 decision affirming Malaysia's sovereignty over Ligitan and Sipadan Islands may affect the determination of maritime boundaries in the Sulawesi Sea, particularly over blocks ND6 (Block Y) and ND7 (Block Z) shared with Indonesia. During the oral question session, Mohd Syahir Che Sulaiman (PN-Bachok) requested an update from the Minister of Investment, Trade and Industry on government efforts to manage tariff disputes involving the United States and the role of state governments in the process. Meanwhile, Datuk Seri Sh Mohmed Puzi Sh Ali (BN-Pekan) asked the Minister of Agriculture and Food Security to detail the financial impact of subsidy cuts on the egg market, including how much savings have been generated. The sitting also included the first reading of the Poisons (Amendment) Bill 2025, and the second readings of the Street, Drainage and Building (Amendment) Bill 2025, and the Whistleblower Protection (Amendment) Bill 2025. This second meeting of the fourth session of the 15th Parliament will span 24 days, with the 13th Malaysia Plan set to be tabled on July 31. Related
