Opening Daily Highlight
Mixed
Bargain hunting may emerge
Mon, 10-Mar-2025 08:14 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (-0.75%) extended its losses, mirroring the sharp decline in US equities on Thursday night. Market sentiment remained weak, with the REIT sector (+0.64%) being the only gainer, reflecting risk aversion. Meanwhile, the Technology sector (-2.05%) was the worst performer, weighed down by profit-taking and global risk-off sentiment.

 

Global Markets Review: US stock markets rebounded on Friday after Fed Chairman Powell reaffirmed the resilience of the US economy despite weaker-than-expected labour market data released. However, European markets closed lower as investors reacted to the shifting US trade policy and digested the soft US jobs data. Similarly, Asian markets ended in the red, with the Nikkei leading losses following a surge in Japan’s bond yields, alongside the negative sentiment from Wall Street’s prior session.

 

Market Outlook: We expect bargain hunting to emerge following Wall Street’s rebound on last Friday. However, we remain cautious, as we anticipate that gains may be short-lived, capped by quick profit-taking amid ongoing geopolitical tensions and uncertainty surrounding US trade policies. On the economic front, key global events this week include the US inflation data, which will be closely watched for further indications of the Fed’s policy direction.

 

Sector focus. We continue to advocate a defensive stance amid market uncertainties, favoring REITs and selective plays in Property, Consumer, and Financial sectors with minimal exposure to foreign trade risks. However, today, the Technology sector may see some bargain hunting following the Nasdaq’s overnight rebound after last week’s dip.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI gapped down and formed another bearish candle yesterday as the key index sank to close at the lowest level since August 2024. Indicators remained negative with the MACD Line lingered below the Signal Line, while the RSI treaded below 50. Immediate resistance is located at 1,570. Support is envisaged around 1,530.

 

Company News (source: various)

Capital A Bhd has received approval from Bursa Malaysia for its proposed regularisation plan, a crucial step towards lifting its Practice Note 17 (PN17) status. 

 

Bumi Armada Bhd said its joint-venture companies have secured two contracts worth a total of RM581.1 million from India’s state-owned Oil and Natural Gas Corporation Ltd (ONGC).

 

SNS Network Technology Bhd said the group has secured a RM269.3 million contract from an undisclosed local customer to supply a server system. 

 

MN Holdings Bhd has secured a RM58.2 million contract from Tenaga Nasional Bhd for the construction of a new transmission main intake gas-insulated substation (GIS) in the Chuping Valley Industrial Area, Perlis.

 

Econpile Holdings Bhd  has clinched a RM27.23 million contract for substructure works for the Setia Federal Hill project (Residential Tower 1) in Kuala Lumpur.

 

Swift Energy Technology Bhd has secured two purchase orders worth a combined RM24.37 million. The company said the contracts were awarded by Offshore Oil Engineering Co Ltd (COOEC) and Siemens Energy Sdn Bhd for energy infrastructure projects in Nigeria and Malaysia respectively.

 

UEM Edgenta Bhd has secured a three-year extension to its concession agreement with the government to provide hospital support services at contract hospitals in Perak, Penang, Kedah and Perlis.

 

Northeast Group Bhd is acquiring two leasehold properties in Seberang Perai Tengah, Penang for RM16.35 million, as part of its plan to accelerate production capacity expansion amid construction delays for its new factory.

 

WTK Holdings Bhd  has proposed the sale of its entire equity interest in two loss-making units for a combined RM40.35 million in cash, as part of the company’s strategy to focus on more commercially sustainable and profitable business segments.

Sentiment: Negative
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