Opening Daily Highlight
Mixed
Firming Up Above 1,500
Wed, 26-Mar-2025 06:22 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+0.7%) staged a sharp recovery, taking cue from the latest positive developments on reciprocal tariff imposition. The lower liners also rebounded as trading liquidity improved. Sectorial wise, 10 out of 13 major sectors finished higher with the Technology sector (+2.3%) leading the pack as the aforementioned sector mirrored the buoyant sentiment on Nasdaq overnight. 

 

Global Markets Review: Wall Street ended mildly higher overnight as the Dow climbed 0.01% after a choppy trading session as the recovery was curbed by the sluggish consumer confidence data at 92.9 in Mar 2025 – the lowest level in four years. In Europe, markets rebounded on easing concerns over broad-based tariffs implementation. Meanwhile, Asian markets finished mixed with the Hang Seng Index (-2.4%) taking the worst hit, dragged down by technology firms and automobile manufacturers.

 

Market Outlook: The local bourse managed to drift higher from the 1,500 psychological level as the key index firmed up its recovery stance lately. Aiding the firmer position was the sustained Leading Index which rose 0.4% yoy to 112.5pts – marking the 14 consecutive months of positive growth. We opine that further recovery could be on the cards amid the improved market sentiment while selling pressure from foreign funds dwindled. Still, we expect the extension of rebound could be well measured by quick profit taking activities over the interim as investors retreat to the sidelines with the Hari Raya festive break draw close. Investors will continue to pay attention towards any developments pertaining to reciprocal tariff implementation for the time being. Key economic development will be focus towards UK’s inflation data to be release later today.

 

Sector focus. We maintain our positive view on the Technology sector that is building onto its recovery stance as bargain hunting activities took precedence. Meanwhile, the Energy sector may have further legs to run as Brent oil prices steadied above US$70/bbl following the tariff imposition on Venezuela production.

 

Technical Commentary: The FBM KLCI formed a bullish candle as the key index firmed up its position above the 1,500 psychological level yesterday. 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)

Velesto Energy Bhd has proposed a capital reduction exercise, reducing RM1.20bil from its issued share capital pursuant to Section 116 of the Companies Act 2016.

 

Astro Malaysia Holdings Bhd’s operating profit slumped again as its annual revenue fell for the eighth consecutive year, dragged down by declining contributions from subscriptions and advertising.

 

Cape EMS Bhd has tied up with Taiwanese aerospace giant, Aerospace Industrial Development Corp (AIDC) to collaborate in the areas of renewable energy, aerospace parts manufacturing and life-science technology.

 

Binastra Corp Bhd reported a 63.2% year-on-year jump in its fourth quarter net profit, as revenue surged 73.9% on higher construction activities and the commencement of 12 new projects during the financial year. 

 

MCE Holdings Bhd's second quarter net profit more than doubled year-on-year to reach a record high, despite lower revenue, thanks to a gain from asset disposal and interest income.

 

Axiata Group Bhd said shareholders of PT XL Axiata Tbk (XL Axiata), PT Smartfren Telecom Tbk and PT Smart Telcom (SmartTel) have approved the proposed merger to establish Indonesia’s third-largest telecommunications company by subscriber base. 

 

Cape EMS Bhd has partnered with Taiwan’s Aerospace Industrial Development Corporation (AIDC) to enter the aerospace parts manufacturing industry and expand its renewable energy business. 

 

Malton Bhd has entered into a memorandum of understanding (MOU) with Shenzhen Apexls Optoelectronic Co Ltd, a China-based manufacturer of LED displays, to incorporate advanced LED technology into its Malaysian property developments. 

 

Press Metal Aluminium Holdings Bhd’s 21.75%-owned Hong Kong unit, Nanshan Aluminium International Holdings Ltd (NAIHL), had a soft debut on the Hong Kong Stock Exchange (HKEX) on Tuesday, registering a 5.08% drop in share price. 

 

AirAsia Aviation Group Ltd, the aviation business of Capital A Bhd, is in the final stages of securing up to RM1 billion in debt financing from an undisclosed domestic bank, to be used to refinance its US dollar-denominated debt and for other corporate purposes. 

 

KNM Group Bhd said its indirect wholly-owned subsidiary is being sued by MBSB Bank Bhd for allegedly defaulting on a RM116.13 million Islamic financing facility. 

 

Three Bursa Malaysia-listed companies – Ge-Shen Corp Bhd, Tex Cycle Technology (M) Bhd, and K Seng Seng Corp Bhd that are linked to businessman Datuk Keh Chuan Seng have assured investors that his resignation will not impact their business operations or strategic plans, despite recent heavy selling pressure on their shares. 

Sentiment: Positive
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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