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Mon, 24-Mar-2025 06:33 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+0.1%) managed to hang onto to inch higher after reversing most of its intraday gains but still ended the week lower (-0.4% wow) to record its fifth straight week of decline. The lower liners also staged a pullback with the FBM Small Cap snapping a five-day recovery streak. Sector-wise, the Telecommunication & Media (-1.3%) sector underperformed. 

 

Global Markets Review: Wall Street rebounded with all three major indices finished higher on the quadruple witching day with investors breathe sigh of relief after US President Donald Trump announced that there would be some flexibility on reciprocal tariffs. In Europe, markets extended their decline on weakness in travel related stocks following the closure of London’s Heathrow Airport after a fire broke out at a nearby electrical substation. Meanwhile, Asian markets ended mostly in red on weakness in earnings from several major corporates in Hong Kong.

 

Market Outlook: The local bourse appears to be finding stability with selling pressure easing as of late. However, we still do not discount the possibility of further volatility ahead of the implementation of reciprocal tariffs on 2 Apr 2025. Trading range for the key index is expected between 1,485 to 15,30. Meanwhile, the lower liners which staged a relatively strong rebound last week may turn into a consolidation with trading activities may also simmer as we approach the Hari Raya festive break next week. For the day ahead, investors will be keeping a close tab onto several flash PMI data from major countries such as Japan, Eurozone, UK and US.

 

Sector focus. The energy sector may build onto its recent rebound amid higher oil prices fresh following US sanctions on Iran and the latest output plan from the OPEC+ for planned production cut till June 2026 which raised expectations of tighter supply. We also reckon the technology sector to mirror the positive performance on Nasdaq on last Friday.

 

Technical Commentary: The FBM KLCI formed an inverted hammer candle to defend the 1,500 psychological level on last Friday as the key index eked out minor gains. Indicators, however, remained negative with the MACD Line lingered below the Signal Line, while the RSI hovers below 50. Immediate resistance is located at 1,530. Support is envisaged around 1,485.

 

Company News (source: various)

Alliance Bank Malaysia Bhd (ABMB) has proposed to raise RM600mil via a proposed renounceable rights issue of new ordinary share.

 

Lianson Fleet Group Bhd (LFG) has entered into a joint venture agreement (JVA) with Precious Shipping (Singapore) Pte Ltd (PSSP) and Emstraits Navigation Sdn Bhd (ENSB) to focus on ship owning, ship operations, leasing and maritime services.

 

Crest Builder Holdings Bhd has proposed a private placement of up to 30% of its share base to raise RM24.3 million to pay for borrowings and purchase building materials. 

 

Capital A Bhd said the High Court has confirmed its issued share capital reduction and repayment, paving the way for the low-cost airline’s proposed distribution. 

 

Nestlé (Malaysia) Bhd on last Friday broke ground for a RM250 million integrated logistics hub in Port Klang to facilitate product exports to over 60 countries and sourcing imported raw materials.

 

DRB-Hicom Bhd has been spared from a potential RM246.25 million tax bill after the Inland Revenue Board (IRB) ruled in favour of the automotive-to-banking conglomerate’s appeal, reversing its decision to classify the gain from the disposal of its long-held stake in Alam Flora Sdn Bhd as income. 

 

VS Industry Bhd’s net profit fell nearly 4% to RM15.38 million for its second quarter ended Jan 31, 2025 (2QFY2025) from RM16 million a year ago, mainly due to a sharp contraction in foreign exchange (forex) gains, which fell to RM915,000 from RM12.79 million a year earlier.

 

Genting Bhd has agreed to pay a fine of US$10.5 million (RM46.41 million) to the Nevada Gaming Commission as part of a settlement for a complaint against its Las Vegas resort.

 

Salcon Bhd said it is pushing to grow its existing healthcare and renewable energy (RE)  segments, and is proposing to include the two into its principal activities. 

 

Erdasan Group Bhd, formerly known as AT Systematization Bhd, is taking legal action against suspended executive director Mak Siew Wei, alleging fraud. 

 

CelcomDigi Bhd on last Friday announced the appointment of Jon Omund Revhaug as its deputy chairman and non-independent non-executive director, with immediate effect.

Sentiment: Neutral
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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