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Global Uncertainty Weighs Sentiment
Fri, 07-Mar-2025 06:53 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: FBM KLCI (-0.35%) surrendered all its intraday gains to end the day lower with 16 gainers against 13 losers. The lower liners were mostly green, while the Financial sector (-1.12%) was the worst performer among its sectoral peers.

 

Global Markets Review: US stock markets retreated as uncertainty on Trump’s trade policy triggered further sell-off. European markets extended its gain amid expectations of a 25bps ECB rate cut this month, marking the sixth reduction since the easing cycle began in 2024. In contrast, Asian markets mostly traded higher following after Beijing introduced additional fiscal stimulus at China's annual parliamentary meeting, pledging stronger measures to boost domestic consumption.

 

Market Outlook: Once again, we opine that the FBM KLCI may continue to trend sideways as investors continue to stay on the sidelines until further clarity on the geopolitical uncertainty. Any recovery is likely to be capped by quick profit-taking, given signs of foreign fund outflows in the near term. The market remains highly reactive to news, with movements largely dependent on US policy developments. Similarly, the lower liners may consolidate in tandem with the weak sentiment on the main bourse. Meanwhile, BNM decision to maintain OPR at 3% came as no surprise, as the government is likely to adopt a wait-and-see approach during this period of volatility before making any adjustments to economic policies.  On the economic front, investors will be keeping a close tab onto US unemployment rate as well as EU’s 4Q 2024 GDP estimate to be release today. 

 

Sector focus. We advocate investors to adopt a defensive stance amid ongoing market uncertainty, with safe-haven assets like gold may generate some buying interest. 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

Gulfing Technical Commentary: The FBM KLCI formed a bearish engulfing candle yesterday implying an extended pullback are on the cards. 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)

Lotte Chemical Titan Holding Bhd’s parent company, Lotte Chemical Corporation (LCC), is selling a 25% stake in PT Lotte Chemical Indonesia (LCI), which will lower LCC's direct interest in the Lotte Chemical Indonesia New Ethylene Project to 24% from 49%.

 

AirAsia Aviation Group, the airline arm of Capital A Bhd that is being transferred to its sister company AirAsia X Bhd, has decided to relocate its domestic jet services from the Subang airport to Kuala Lumpur International Airport Terminal 2 (klia2), effective April 7.

 

Axiata Group Bhd’s 63%-owned Edotco Malaysia Sdn Bhd has announced a series of collaborations aimed at accelerating 5G telecommunications infrastructure in Malaysia, including being selected as U Mobile Sdn Bhd’s 5G in-building coverage (IBC) infrastructure partner.

 

Sapura Energy Bhd said the Kuala Lumpur High Court has granted an order approving the oil and gas services outfit’s debt restructuring plan, which will take effect once a copy of the court order is lodged with the Companies Commission Malaysia.

 

Malaysia Marine and Heavy Engineering Holdings Bhd's wholly-owned unit Malaysia Marine and Heavy Engineering Sdn Bhd has signed a joint development agreement (JDA) with US-based firm FuelCell Energy Inc.

 

Euro Holdings Bhd has proposed a slew of corporate exercises, which will see its former group managing director and major shareholder Datuk Seri Steven Lim Teck Boon’s stake expanding to 46.99% from 38.45% currently.

 

Sapura Industrial Bhd has partnered with China-based lithium battery firm Zhejiang Zhongze Precision Technology Co Ltd to establish an industrial and commercial battery component manufacturing facility in Malaysia.

 

Cahya Mata Sarawak Bhd’s (CMS) deputy chairman Datuk Seri Mahmud Abu Bekir Taib has filed a lawsuit against the group to inspect its accounts.

 

SDS Group Bhd has proposed to undertake a bonus share exercise on a one-for-three basis — one bonus share for every three existing shares held — to reward shareholders and improve trading liquidity of its shares.

 

Practice Note 17 (PN17) Nylex (M) Bhd is slated to be delisted from the Main Market of Bursa Malaysia on March 11 after its bid for a further extension to submit its regularisation plan was dismissed by the bourse regulator.

Sentiment: Negative
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Market Mover
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