Opening Daily Highlight
Mixed
Volatility may resurface
Fri, 14-Mar-2025 07:05 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+1.7%) staged a strong rebound after five consecutive sessions of losses, mirroring the positive performance of Wall Street overnight. Lower liners also followed suit, recovering from recent selling pressure. Market sentiment turned positive, with all sectors closing in the green, led by Technology (+3.7%) and Energy (+3.1%).

 

Global Markets Review: Wall Street slumped again after Wednesday’s mild rebound, as uncertainty over escalating tariff disputes reignited fears of a potential economic recession. Sentiment took a hit after President Trump threatened to impose a new 200% tariff on European imports, including wine and cognac. Additionally, US PPI data came in at 0% MoM growth, cooler than expected, raising concerns over weaker economic. European markets also closed lower, pressured by the potential implications of retaliatory tariffs. Meanwhile, most Asian markets ended in the red, tracking the weaker sentiment following a softer-than-expected US CPI reading.

 

Market Outlook: With global markets remaining turbulent due to ongoing uncertainties surrounding reciprocal tariffs set to take effect on 2 Apr 2025, we anticipate profit-taking activities to emerge in the local bourse today, following yesterday’s strong rebound. Adding to the cautious sentiment, Wall Street officially entered correction territory overnight, further dampening risk appetite. Meanwhile, foreign funds net selling remains unabated and may add further pressure towards volatility. Hence, we maintain a defensive stance, advising investors to adopt a wait-and-see approach until clearer direction emerges regarding global trade policies post-April.

 

Sector focus. Amid heightened market volatility, we remain cautious and continue to favour defensive sectors, including REITs, Healthcare, Utilities, and Transportation, which may offer resilience in the current uncertain environment.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a bullish candle to snap a five-day losing streak as the key index reclaimed the 1,500 psychological level. Indicators, however, remained negative with the MACD Line lingered below the Signal Line, while the RSI is below 50. Immediate resistance is located at 1,570. Support is envisaged around 1,500.

 

Company News (source: various)

UWC Bhd net profit more than doubled to RM9.69 million for its second financial quarter ended Jan 31, 2025 (2QFY2025) from RM4.81 million a year ago, amid the semiconductor industry's strong recovery.

 

Apollo Food Holdings Bhd’s net profit fell 65.5% to RM10.43 million in its third quarter ended Jan 31, 2025 (3QFY2025) from RM30.24 million a year ago, dragged by lower profit margins and the absence of RM21.9 million in disposal gains from investment properties.

 

Hibiscus Petroleum Bhd has declared a third interim dividend of two sen per share for the financial year ending June 30, 2025 (FY2025), with the extension of one of its production sharing contracts.

 

TMK Chemical Bhd is acquiring a land parcel with a detached factory and mezzanine office in Singapore for S$14.8 million (RM49.18 million) to support its future expansion in the city-state.

 

Avangaad Bhd, fresh from having its cash-strapped status lifted, plans to buy marine consultancy company Bumi Jaya Shipcare Sdn Bhd and two tugboats for RM49 million.

 

Kerjaya Prospek Group Bhd has secured an RM11.64 million contract for construction works from Tanjung Pinang Development Sdn Bhd (TPDSB), in a related party deal.

 

PUC Bhd group managing director and group chief executive officer Cheong Chia Chou has further trimmed his stake in the loss-making digital payment solutions provider to 4.06%.

Sentiment: Positive
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