Market Review & Outlook
Malaysia Market Review: FBM KLCI (-0.21%) extended its decline with more than two third of the key index components closed in red yesterday. The lower liners traded in negative territory, with the Construction sector (-2.12%) leading the decline. In contrast, the Healthcare sector (+1.26%) stood out, lifted by a surge in KPJ following its record profits and special dividend announcement.
Global Markets Review: US stock markets plunged after President Trump reaffirmed that 25% tariffs on imports from Mexico and Canada would take effect on Tuesday. In Europe, defense stocks outperformed, led by security talks among regional leaders on increasing military spending. Meanwhile, most Asia-Pacific markets traded higher on Monday, with investors closely monitoring developments on Trump’s tariff plans.
Market Outlook: We anticipate continued volatility in the FBM KLCI over time, as investors exercise caution due to the uncertainty in the global market. Geopolitical tension between Russia and Ukraine as well as Trump’s tariff on key trading partners remained as the key focal point. These global uncertainties have unsettled investors, driving market volatility as traders fear a potential resurgence of inflation. The lower liners overdue recovery also continues to face uncertainties amid the absence of fresh leads post quarterly reporting period. We reckon the thinning trading activities may limit upside, if any. Going forward, investors will be keeping a close tab onto EU unemployment rate for release today.
Sector focus. We advocate investors to adopt a defensive stance amid ongoing market uncertainty, with safe-haven assets like gold potentially attracting interest following the recent pullback. Meanwhile, energy-related stocks could face selling pressure as OPEC+ moves forward with its planned oil output increase in Apr 2025, coupled with concerns over the impact of US tariffs on global economic growth and oil demand.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI staged another pullback after erasing all its intraday gains in a volatile trading session yesterday. Indicators turned negative with the MACD Line tripped below the Signal Line, while the RSI treaded below 50. Immediate resistance is located at 1,600. Support is envisaged around 1,550.
Company News (source: various)
UEM Edgenta Bhd has secured a RM40.43 million recurrent, related-party contract to provide traffic management plan and control services for two sections of the Kuala Lumpur-Karak Highway.
Exsim Hospitality Bhd has secured five contracts worth a combined RM127.92 million for design, renovation and fit-out works across multiple property developments.
Eden Inc Bhd announced on Monday that its Libaran power plant in Sandakan will continue supplying power to Sabah’s east coast for another two years with a 50% increase in capacity.
Offshore crane services provider Handal Energy Bhd has proposed to venture into the healthcare services through the subleasing of two hospitals in Selangor.
Construction outfit Nestcon Bhd has proposed to diversify into property development through a joint venture (JV) serviced apartment project in Petaling Jaya Selatan, Selangor, to expand its revenue streams.
Property developer Asian Pac Holdings Bhd’s wholly-owned subsidiary Primadana Utama Sdn Bhd is buying the Jaya Shopping Centre in Petaling Jaya, Selangor, for RM100 million, cash.
Barakah Offshore Petroleum Bhd is seeking a new buyer for its Kota Laksamana 101 (KL101) barge as it has cancelled its plan to sell the vessel to PT Wintermar Rajawali Asia after the preliminary agreement they inked for the deal lapsed on February 28.
Sime Darby Property Bhd will look to take on more data centre projects as a means of growing its recurring income, said group managing director and chief executive officer Datuk Seri Azmir Merican.
Pantech Global Bhd said on Monday its US clients continued to place orders from the newly listed steel pipe manufacturer despite new import tariffs.
Digital media and advertising group Catcha Digital Bhd plans to continue to expand via mergers and acquisitions (M&As), and may spend more than the RM80 million it set aside in September last year for this purpose.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.449264 | 4.480081 |
EUR | 4.653002 | 4.657428 |
CNY | 0.611489 | 0.612097 |
HKD | 0.571899 | 0.576406 |
SGD | 3.300709 | 3.323891 |