Local Market Strategy
Local
Market Strategy - Capitalising On The Downturn
Mon, 17-Mar-2025 07:31 am
by Research Team • Apex Research

Executive Summary

 

  • Escalating trade tension between US and major part of the world have resulted in sharp market pullback as of late with the FBM KLCI not spared from the global market rout as the key index briefly sank below 1,500 pts. 

  • While full blown recession is still off the cards, we reckon potential global economic slowdown stemmed by uncertainties surrounding the ongoing and potential escalation of trade war may keep volatility on the cards.

  • Downgrade end-2025 FBM KLCI target to 1,680 (from 1,760) based on PER of 14.5x, which represents -0.5 SD of long-term forward average in view of external economic uncertainties, risk of further foreign funds outflow, volatility remains on the forefront and the absence of fresh domestic catalyst.

  • Turning more defensive with focus skewing towards selected sectors such as REIT, Utilities, Healthcare (ex-gloves) and Logistics to safeguard exposure towards external shocks, offers clearer earnings predictability and they are touted to be defensive in nature. Top picks are SUNREIT (NR), TENAGA (BUY; TP: RM16.04), MALAKOF (BUY; TP: RM0.94), WPRTS (BUY; TP: RM5.08) and KPJ (NR).

Sentiment: Neutral
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.420886 4.455517
EUR 4.777422 4.786296
CNY 0.609704 0.610870
HKD 0.568233 0.572913
SGD 3.295156 3.321155