Review & Outlook

Bursa Malaysia shares traded sideways on Monday, with investors flocking to safe haven assets as cautious sentiment prevailed amid the ongoing conflict between Iran and Israel. The FBM KLCI rose 1.88 points to close at 1,519.99, off an early low of 1,512.26 and high of 1,521.38, as losers crowded gainers 613 to 321, on moderate trade totaling 2.84bn shares worth RM2.05bn.

The overnight rebound on Wall Street should revive the local market today, but market undertone remains cautious amid ongoing tensions in the Middle East. Immediate index support is kept at 1,490, while stronger supports can be found at 1,465 and 1,444. Immediate resistance stays at 1,564 with next upside hurdles seen at the recent high of 1,586, followed by 1,610 ahead.

Dialog needs decisive breakout above the 50%FR (RM1.85) to enhance upside potential towards the 38.2%FR (RM2.02), with stronger upside hurdle coming at the 23.6%FR (RM2.23) ahead. Crucial chart supports at the 76.4%FR (RM1.46) and RM1.33 limit downside risk. Velesto will need to climb above the 76.4%FR (23sen) convincingly, to aim for 26sen and the 28/02/24 peak (28sen) going forward, while key chart supports at the 38.2%FR (15sen) and 23.6%FR (12sen) should cushion downside risk.

News Bites

• Prime Minister Datuk Seri Anwar Ibrahim said that the country's utility company Tenaga Nasional Bhd has committed RM43.0bn to upgrade the national power grid.

• MBSB Bhd has approved Islamic financing facilities totalling RM180.0mn for MAG Holdings Bhd to strengthen its operations across the halal aquaculture value chain.

• The Federal Land Development Authority today said it has dispatched the offer documents for its plan to privatise FGV Holdings Bhd, with the offer closing at 5pm on 7 July 2025, unless extended.

• Malakoff Corporation Bhd's unit Malakoff Radiance Sdn Bhd has teamed up with New Energy Asia Sdn Bhd to jointly deploy electric vehicle charging infrastructure.

• Berjaya Land Bhd has signed a memorandum of understanding with Sweden-based SIBS Sdn Bhd to deliver climate-resilient modular housing in Greenland.

• Solarvest Holdings Bhd has, via a joint venture company, secured a 25- year power purchase agreement with the government of Brunei to invest in, build, and operate a 30MWac solar photovoltaic power plant.

• Deleum Bhd, through its indirect unit Deleum Oilfield Solutions (Thailand) Co Ltd, is buying Thailand-based MPC Future Co Ltd's oilfield service assets and business for RM60.0mn through a combination of cash and share issuance in a subsidiary.

• Former head honcho of Securities Commission Malaysia, Datuk Syed Zaid Albar will take over as group chairman of CIMB Group Holdings Bhd from Tan Sri Mohd Nasir Ahmad, effective 20 July 2025.

• Compugates Holdings Bhd executive director See Thoo Chan has acquired 7.1mn shares or 0.12% stake in Compugates for RM106,299. He now holds a direct interest of 7.9%.

• Sersol Bhd's executive director Datuk Mohamed Suffian Awang has reemerged as the company's largest shareholder, after acquiring a 13.7% stake.

• Poh Kong Holdings Bhd's 3QFY25 net profit came in almost unchanged at RM47.6mn compared to RM47.7mn a year ago mainly due to higher income tax and operating expenses.

• China's industrial output grew 5.8% YoY slowing from 6.1% YoY in April and missing expectations for a 5.9% rise in a Reuters poll of analysts.

• The Federal Reserve Bank of New York's general business conditions index declined nearly seven points to minus 16, marking a fourth straight month of contraction, but the outlook for business conditions in the next six months jumped more than 23 points, the most in nearly five years.

Source: TA Research - 17 Jun 2025