Opening Daily Highlight
Mixed
Negatives may spillover
Tue, 11-Mar-2025 07:34 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (-0.7%) extended its losses after quick profit-taking erased earlier intraday gains in tandem with the weakness across most of the regional markets. Market sentiment remained cautious, with all sectors closing in the red, led by the Technology sector (-2.82%), which bore the brunt of selling pressure. 

 

Global Markets Review: US stock markets tumbled overnight as recession fears resurfaced, fuelled by ongoing tariff disputes and the President's remarks in a TV interview suggesting that a recession remains a possibility. European markets also ended lower, dragged down by declines in technology stocks. Meanwhile, Asian markets were mixed, with the Nikkei rebounding, providing some relief to regional sentiment.

 

Market Outlook: Market sentiment remains fragile following heavy profit-taking yesterday, while margin call activities in selected small and mid-cap stocks exacerbated selling pressure on the lower liners. The sharp plunge in Wall Street is likely to have a negative spillover effect on the local bourse today, with potential of extension in selling activities at the opening bell amid external uncertainties, particularly concerns over US trade policies and economic outlook. The sharp selling pressure from foreign funds also attributed to the negative sentiment on the local markets. Investors may stay cautious ahead of the US inflation report this week, which could offer further cues on the Federal Reserve’s next policy move.

 

Sector focus. In the event of the negative market sentiment, we continue to advocate a defensive approach, favouring REITs and fundamentally strong blue-chip stocks in the Financial and Consumer sectors that have limited exposure to foreign trade risks.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed another gap down as the key index retreated for the fourth straight session yesterday. Indicators remained negative with the MACD Line lingered below the Signal Line, while the RSI approaches the oversold territory. Immediate resistance is located at 1,570. Support is envisaged around 1,530, followed by 1,500.

 

Company News (source: various)

Capital A Bhd expects to exit its Practice Note (PN17) status by May this year, according to its chief executive officer Tan Sri Tony Fernandes.

 

TDM Bhd’s subsidiary Kumpulan Medic Iman Sdn Bhd (KMI Healthcare) is collaborating with Bertam Specialist Hospital Sdn Bhd (BSHSB) to develop a 100-bed hospital in Bertam, Penang, with a gross development cost of RM146 million.

 

MGB Bhd's subsidiaryhas secured two orders worth RM88.57 million from Saudi Arabia's Sany Alameriah Industrial to supply and install precast elements for the Roshn Alarous development in Jeddah.

 

Lim Seong Hai Capital Bhd has signed a 20-year concession agreement to operate and maintain the iconic Kuala Lumpur Tower, after almost a year it first announced the contract win.

 

JF Technology Bhd , has entered an agreement with Spire Manufacturing Inc to acquire Q3 Probe Pte Ltd for US$1.36 million (RM6 million).

 

Kerjaya Prospek Group Bhd has secured a RM51.03 million contract for piling and earthworks at a serviced apartment project in Andaman Island, Penang, in a related party transaction (RPT).

 

Pestech International Bhd is raising a further RM27.81 million through a restricted issue of shares to its newly emerged controlling shareholder, Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA), to fund ongoing projects.

 

Sapura Resources Bhd announced that the company has completed an internal investigation into its former managing director Datuk Shahriman Shamsuddin and submitted its findings to Bursa Malaysia and the Companies Commission of Malaysia (SSM).

 

Bursa Malaysia Securities has publicly reprimanded Oasis Harvest Corp Bhd and its adviser, Mercury Securities Sdn Bhd, over the termination of the company's rights issue in 2023.

 

Bursa Malaysia Securities has publicly reprimanded Annum Bhd and imposed fines of RM31,000 each on five of its directors for failing to issue the company's annual report for the 18-month financial period ended June 30, 2023 within the stipulated deadline.

Sentiment: Negative
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Market Mover
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