U.S. stocks rose to record highs after Iran reopened the Strait of Hormuz following a ceasefire between Israel and Lebanon, easing geopolitical tensions and boosting investor sentiment, with the S&P 500 up 1.2%, Nasdaq up 1.52% (extending a 13-day winning streak), Dow up 1.79%, and Russell 2000 up 2%, while oil prices fell sharply (WTI −12%, Brent −9%) as supply concerns eased and markets shifted away from worst-case scenarios toward expectations of stability, though future gains depend on strong corporate earnings, especially in tech, as retail investors continued buying dips like Netflix and mega-cap tech maintained momentum.
In parallel developments, MTQ flagged impairment and expected losses due to Middle East impacts, while AJJ Medtech is exploring humanoid robots for growth.
In Singapore and regional corporate news, EDIS invested $3 million in Mencast via convertible bonds to increase its stake to about 6.3%, funded partly by profits from Addvalue, while CapitaLand Ascendas REIT saw strong oversubscription and OCBC emerged as preferred bidder for HSBC Indonesia retail assets;
CDL Hospitality Trusts reported manageable but negative impact from the Middle East conflict, especially in the Maldives, with warnings of further travel demand pressure from inflation, higher energy costs, and weaker connectivity, alongside a 9.8% drop in FY2025 DPS due to higher financing costs, normalised demand, and lower net property income, while Seatrium customers deferred maintenance work.
Jardine Matheson is also in talks to acquire CK Hutchison’s supermarket business (ParknShop) though no deal is imminent.
In markets, Bitcoin rebounded above $75,000 but faces skepticism due to prolonged bearish positioning despite ETF inflows and institutional buying, creating potential for a short squeeze but facing resistance near $80,000; gold rose for a fourth weekly gain near $4,785 on safe-haven demand and easing inflation expectations, though higher-for-longer rates remain a headwind.
The Hong Kong stock market closed lower, with the Hang Seng Index (HSI) falling 0.9% to 26,160, the HSCEI down 0.7%, and the HSTECH losing 1%, as turnover reached HKD238 billion. Weakness was broad-based across sectors, including technology, AI, semiconductors, automotive, and financial stocks. In tech, Alibaba edged up slightly after open-sourcing a new AI model, while JD.com and Meituan declined amid regulatory scrutiny, including nearly RMB3.6 billion in penalties on e-commerce platforms tied to “ghost takeaway” cases. Other major tech names such as Tencent, Baidu, Kuaishou, NetEase, and Bilibili also fell. Chip and AI-related stocks were mixed but mostly lower, with some sharp declines, while auto stocks showed mixed performance with Nio rising but BYD and Xiaomi slipping. Financial stocks also weakened, with insurers and banks broadly declining. Overall sentiment was pressured by weaker China macro data, including slower-than-expected fixed asset investment and industrial production, adding to concerns about economic momentum.
Several Malaysian listed companies announced new contracts, corporate actions, and strategic changes, with a strong focus on infrastructure and data centre-related projects. MN Holdings secured a RM275.9 million contract for electrical infrastructure work supporting a data centre in central Peninsular Malaysia, while Kawan Renergy won a RM70.37 million deal to supply diesel generator systems for another data centre project. Exsim Hospitality also landed a RM138 million subcontract for mechanical, electrical, plumbing, and fit-out works, and FBG Holdings obtained a RM40.21 million contract for a crash test laboratory project. Bina Puri added a RM156.45 million road construction subcontract in Sarawak, while WTEC Group plans to acquire a RM10.8 million factory to consolidate operations.
In corporate developments, 7-Eleven Malaysia declared a 1.35 sen interim dividend, Aizo Group received Bursa approval for a multi-part fundraising plan, and K Seng Seng Corp proposed a name change to EC Excel Holdings. Meanwhile, Inari Amertron and China’s Sanan Optoelectronics scrapped a US$239 million acquisition of Lumileds after US national security concerns blocked the deal.
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