Opening Daily Highlight
Mixed
All Eyes on the Fed and BOJ
Wed, 19-Mar-2025 07:12 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI extended its gains for a third consecutive session on Monday (+1.0%) in line with the strong performance of regional markets. Lower liners also followed suit, driven by broad-based buying across various sectors. All sectors registered gains, led by Energy (+2.3%), Utilities (+2.0%), and Technology (+1.8%). Bursa Malaysia was closed yesterday for the Nuzul Al-Quran public holiday.

 

Global Markets Review: Wall Street snapped its two-day winning streak on Tuesday as the Federal Reserve convened for its two-day monetary policy meeting, while economic uncertainty intensified. In Europe, markets close higher after Germany passes landmark fiscal package, boosting investors confidence. Meanwhile, Asian markets ended mostly higher on Tuesday, tracking the overnight gains on Wall Street as US retail sales data helped ease recession concerns. The Hang Seng Index (+2.5%) led gains in Asia, driven by strong rally in tech giants like Baidu. However, Indonesia's stock market halted trading on Tuesday for the first time since 2020 after the Jakarta Stock Exchange Composite Index plunged more than 7% due to concerns over economic stability and consumer sentiment. 

 

Market Outlook: As tariff concerns and trade tensions persist, we anticipate heightened volatility in the market. Following the recent recovery, we expect some profit taking activity in the local bourse today ahead of the Federal Reserve and BOJ interest rate decision. Both central banks began their two-day monetary policy meetings on Tuesday and are expected to maintain interest rates unchanged on Wednesday. Additionally, Nvidia’s GPU Tech Conference (GTC) takes place this week, which could drive interest in the Technology sector.

 

Sector focus. We continue to favour defensive sectors, such as REITs, Healthcare (excluding gloves) and Utilities, which may provide stability amid market uncertainties. Gold-related stocks may attract interests today as gold prices hits new highs, driven by investors hedging against global uncertainties. Meanwhile, Energy sector could see profit taking activity as oil price eased following Ukraine peace talks that offset concerns over Mideast instability.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI gapped up to march higher for the third straights session as the key index cemented its position above 1,500 psychological level. Indicators, however, remained negative with the MACD Line lingered below the Signal Line, while the RSI hovers below 50. Immediate resistance is located at 1,570. Support is envisaged around 1,500.

 

Company News (source: various)

Malaysian Resources Corp Bhd has struck a land swap deal with Cyberview Sdn Bhd, in which the Minister of Finance Inc owns a 92.24% stake. The other shareholders of Cyberview — the master developer of Cyberjaya — include Sime Darby Property Bhd, with a 5.17% stake, and Permodalan Nasional Bhd, with a 2.59% stake.

 

Sapura Energy Bhd clarified that it has not been contacted by the MACC regarding a probe into alleged bribery and fund misappropriation involving the company. 

 

Solarvest Holdings Bhd has secured a RM401 million engineering, procurement, construction and commissioning contract for Tenaga Nasional Bhd’s 500MW solar farm in Bukit Selembau, Kedah. 

 

Water and wastewater engineering company Salcon Bhd has secured two wastewater-related contracts worth RM99.8 million. 

 

Rohas Tecnic Bhd has entered into a binding term sheet with South Korea-based Korea Water Resources Corporation to sell its 30%-owned Vietnamese unit Phu My Vinh Construction and Investment Corporation for RM87.14 million. 

 

Penang-based biomass material manufacturer HHRG Bhd’s new shareholder Digital Trustees Bhd has called for an extraordinary general meeting to remove its entire board of directors and replace them with three new directors.

 

Jentayu Sustainables Bhd has aborted its acquisition of hydro assets in Sabah — Senja Optima Sdn Bhd, Telekosang Hydro One Sdn Bhd and Telekosang Hydro Two Sdn Bhd — having inked the deals more than three years ago in September 2021.

 

Focus Point Holdings Bhd has proposed a one-for-three bonus issue, alongside a dividend reinvestment plan (DRP) and a share grant plan, aimed at enhancing shareholder value and incentivising employees. 

 

Catcha Digital Bhd has finalised the acquisition of a 51% stake in DS Services Sdn Bhd (Digital Symphony) for RM22.95 million cash, after more than two years of negotiations.

 

Poh Huat Resources Holdings Bhd saw its first-quarter net profit fall 7.98% to RM9.48 million from RM10.30 million a year earlier, due to higher material costs and factory overheads, amid lower capacity utilisation in its Vietnam factories. 

 

Dutch Lady Milk Industries Bhd, a dairy company under FrieslandCampina, has named Veronika Winanti Wahyu Utami as its new managing director, effective from April 15, 2025. 

 

AmanahRaya Real Estate Investment Trust (REIT) has officially appointed acting managing director (MD) Mohd Iskandar Dzulkarnain Ramli as MD of AmanahRaya Kenedix REIT Manager Sdn Bhd, effective immediately. 

 

Asia Poly Holdings Bhd has ceased to be a substantial shareholder in Ta Win Holdings Bhd after disposing of its entire 5.59% stake in the copper wire manufacturer  via a direct business transaction.

Sentiment: Positive
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Market Mover
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Currency Buy Rates (RM) Sell Rates (RM)
USD 4.416959 4.453511
EUR 4.831305 4.839524
CNY 0.612268 0.613147
HKD 0.568641 0.572854
SGD 3.314348 3.339042