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All Eyes on BNM OPR
Thu, 06-Mar-2025 07:05 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: FBM KLCI (+0.56%) snapped a four-day losing streak taking cue on positive developments spillover from the US market overnight after signals of a less aggressive tariff stance by the US administration. The lower liners also turned green, while the Construction sector (+2.61%) was the best performer among its sectoral peers.

 

Global Markets Review: US stock markets rebounded as the government granted a one-month delay on tariffs for automakers complying with the United States-Mexico-Canada Agreement (USMCA). European markets climbed amid signs of a softer US stance on tariffs against Mexico and Canada, along with optimism over Germany’s debt overhaul and increased defence spending. Meanwhile, Asian markets mostly traded higher as investors digested China’s 5% GDP growth target and its lowered 2% inflation target.

 

Market Outlook: Gains on the FBM KLCI are expected to be short-lived as the key index is approaching the stiff resistance at 1,570. Any recovery is expected to be tempered by quick profit taking activities on signs of foreign fund outflows over the interim. The market remains highly sensitive to news, with the recent recovery seemingly driven by optimism over a compromise on Trump’s tariffs. This follows comments from Commerce Secretary Howard Lutnick, who hinted that the US might seek a middle ground in tariff negotiations with Canada and Mexico. The lower liners may attempt to build onto yesterday’s recovery as bargain hunting activities takes precedence from oversold and beaten down stocks. Economic wise, investors will be keeping a close tab onto EU and BNM interest rate decision to be 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. We are also bullish on companies benefiting from global supply chain diversification amid the intensifying trade war, while export-oriented players may benefit from the strength of the US Dollar.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed another gap down as the key index drifted further from the SMA50 level. Indicators remained 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)

AirAsia Aviation Group, the airline arm of Capital A Bhdthat is being transferred to its sister company AirAsia X Bhd, is accelerating its expansion plans by adding 14 new aircraft to its fleet in 2025.

 

Sunway Construction Group Bhd has secured a RM1.5 billion contract to undertake construction works for the Rapid Transit System Transit-Oriented Development (RTS TOD) at Bukit Chagar, Johor, in a related-party transaction.

 

KJTS Group Bhd has secured a contract from KIP Real Estate Investment Trust to provide retrofit works, operations and maintenance (O&M) services as well as chilled water supply for seven of the retail property trust’s shopping malls.

 

Magni-Tech Industries Bhd's net profit for its third quarter ended Jan 31, 2025 (3QFY2025) rose marginally by 1.5% to RM39.97 million from RM39.38 million a year ago, on the back of higher foreign exchange gains of RM4.29 million and lower raw material costs, particularly in the garment segment.

 

AEON Co (M) Bhd announced on Wednesday that its Aeon Mall Kinta City in Perak will be expanded and upgraded in a bid to enhance its retail offerings.

 

CIMB Group Holdings Bhd aims to build a leading deposit franchise to reduce the cost of funds by 10 to 20 basis points by 2030, as part of its newly unveiled six-year roadmap known as Forward30.

 

PPB Group Bhd expects its grains and agribusiness division to benefit from the US-China tariff war, which is likely to lower American grain prices, particularly wheat and corn, helping to reduce costs. PPB's grains and agribusiness arm, FFM Bhd, accounts for over 70% of revenue.

 

Construction player and property developer Vizione Holdings Bhd has proposed a share capital reduction of up to RM500 million to eliminate its accumulated losses and strengthen its financial position.

 

Kerjaya Prospek Property Bhd has proposed a renounceable rights issue of redeemable convertible unsecured loan stocks (RCULS) to raise up to RM324.88 million, mainly to fund property development projects and repay bank borrowings.

 

Fortified food and dietary supplement maker OB Holdings Bhd said the group's intellectual property (IP) infringement dispute with a client has been brought before a court in the Australian state of Victoria.

Sentiment: Positive
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Market Mover
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EUR 4.814360 4.819033
CNY 0.609971 0.610580
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