Opening Daily Highlight
Mixed
Bargain hunting may spark by positive news
Wed, 12-Mar-2025 07:07 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (-1.06%) plummeted, mirroring the broad-based sell-off across the region following Wall Street’s slump. No sectors were spared, with all 13 major sectors closing in the red, led by sharp declines in the Healthcare (-2.5%) and Property (-2.4%) sectors.

 

Global Markets Review: US stock markets ended lower after a volatile session, as lingering tariff fears overshadowed several positive developments, including Ukraine’s willingness to accept a 30-day ceasefire plan and Canada’s decision to withdraw its proposed tariff hike on electricity exports to the US. Likewise, European and ASEAN markets closed lower as escalating US trade policy concerns weighed on sentiment.

 

Market Outlook: The local bourse has experienced broad-based selling over the past two days, exacerbated by Wall Street’s weakness amid tariff-related concerns. However, we anticipate bargain-hunting activities to emerge today following the steep sell-off yesterday. Potential recovery may be supported by positive developments, including the US House of Representatives passing a bill to avert a government shutdown and Malaysia’s Prime Minister, Datuk Seri Anwar Ibrahim, receiving a courtesy call from the US Ambassador, which could help ease concerns over US-Malaysia tariff threats. However, we reckon that any potential rebound may also attract quick profit taking activities over the interim. On the global economic front, investors will closely monitor the release of key US inflation data, including CPI and PPI, later this week for clearer indications of the Federal Reserve’s next policy move.

 

Sector focus. We advise investors to seize buying opportunities in fundamentally strong beaten down stocks following yesterday’s sentiment-driven sell off. Under the prevailing the current environment, we remain focused on resilient blue-chip stocks within the Financial, Telecommunications, and Consumer sectors, which have minimal exposure to foreign trade risks.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI took another beating yesterday to deepen its correction phase. Indicators remained negative with the MACD Line lingered below the Signal Line, while the RSI slipped into the oversold territory. Immediate resistance is located at 1,570. Support is envisaged around 1,500.

 

Company News (source: various)

Sapura Energy Bhd has received a lifeline in the form of a RM1.1 billion investment from the Minister of Finance (Inc) through its special purpose vehicle Malaysia Development Holding Sdn Bhd (MDH).

 

FGV Holdings Bhd said Bursa Securities has rejected the plantation group's application for a further six-month extension to comply with the public shareholding spread requirement.

 

Teleport, the logistics arm of Capital A Bhd , said it is actively seeking funds from private investors to boost its finances for expansion before embarking on an initial public offering (IPO).

 

ES Sunlogy Bhd has been awarded a contract worth RM34 million to develop a 29.99 megawatt (MWac) large-scale solar photovoltaic (LSSPV) system under the Corporate Green Power Programme.

 

Erdasan Group Bhd, formerly known as AT Systematization Bhd, has suspended its executive director, Mak Siew Wei, pending an investigation into possible questionable transactions that occurred in 2020 and 2021.

 

KESM Industries Bhd, the world’s largest independent burn-in and test service provider, posted its third straight quarterly net loss of RM2.99 million, or loss per share of 6.95 sen, in the second quarter ended Jan 31, 2025 (2QFY2025), due to continued weak demand for automotive chips.

 

Flexible plastic packaging provider Scientex Packaging (Ayer Keroh) Bhd posted a 16.61% year-on-year increase in net profit for the second quarter, driven by stronger export sales and an improved sales mix.

 

Saliran Group Bhd , which is scheduled for listing on the ACE Market this Thursday, posted a RM3.72 million profit for the fourth quarter ended on Dec 31, 2024 (4QFY2024).

 

Globaltec Formation Bhd said it is letting go of its stake in the Muara Enim 2 production sharing contract. 

Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.400379 4.430934
EUR 4.814360 4.819033
CNY 0.609971 0.610580
HKD 0.566392 0.570331
SGD 3.304308 3.327507