Opening Daily Highlight
Mixed
Volatility May Persist
Fri, 04-Apr-2025 06:23 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (-0.5%) retreated alongside with regional markets, following the announcement of US reciprocal tariffs. The lower liners also trended lower. Meanwhile, only the Healthcare (+2.0%) and Telecommunications & Media (+0.6%) sectors outperformed the sectorial peers as the former was boosted by rally in glovemakers that are supported by better outlook against Chinese glovemakers.

 

Global Markets Review: Wall Street tanked overnight with all three major indices finished sharply lower in reaction to the reciprocal tariffs that may threaten the prospect of economic growth. European markets also finished sharply lower as European Union leaders vows countermeasures to Trump tariffs should trade negotiation fails. Likewise, Asian markets closed mostly in red, spooked by Trump’s hefty tariff particularly towards most of the countries.

 

Market Outlook: Expectedly, sentiment has turned volatile across global markets following the reciprocal tariff from US. While Malaysia was not spared, the FBM KLCI appears to be fairly resilient, edging just mildly lower yesterday as the impact of reciprocal tariff to Malaysia is deemed not as severe as compared other nations across the ASEAN region. We expect the FBM KLCI to attempt to defend the 1,500 psychological level as the Ministry of Investment, Trade & Industry (Miti) will be actively engaging with US authorities to seek a common ground to uphold free and fair trade. Trading activities on the lower liners also dwindled as certain investors are still reeling from the extended festive break. Economic wise, investors will be focusing onto US unemployment data as well as US Federal Reserve Chairman Jerome Powell speech later tonight.

 

Sector focus. We continue to advocate for a defensive stance in favour of the REIT, Healthcare, Utilities and Transportation & Logistics sectors amid the on-going market volatility. Meanwhile, we expect Oil & Gas stocks to underperform following the slump in oil prices following the decision by OPEC+ to add 411,000 bpd of supply to the market in May 2025 vs the originally planned 138,000 bpd.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a doji candle as uncertainties prevail with the key index attempt to defend the 1,500 psychological level. Indicators remained mixed with the MACD Line hovered above the Signal Line, while the RSI is below 50. A consolidation may extend with trading range between 1,480-1,530. Immediate resistance is located at 1,550. Support is envisaged around 1,500.

 

Company News

Mayu Global Group Bhd’s executive director, Tan Kim Hee, has been detained by Bukit Aman Police to assist in an ongoing investigation.

 

Ho Hup Construction Co Bhd is disposing of two properties in Bukit Jalil, Kuala Lumpur to Premium Realty Sdn Bhd and Sensecube Sdn Bhd for a total of RM13mil.

 

Tuju Setia Bhd has bagged a contract worth RM264.07 million for the construction of serviced apartments in Cheras, Selangor. 

 

Iskandar Waterfront City Bhd has been given a six-month extension until 23 Sept to submit its regularisation plan from the original deadline of 24 March.

 

Tenaga Nasional Bhd (TNB) will implement its TNB Fire Relief Assistance programme, offering a one-off 100% rebate on one month’s electricity bill for customers whose homes were affected by the gas pipeline blaze in Putra Heights, Subang Jaya. 

 

HHRG Bhd said its 51%-owned subsidiary, MG Furniture Sdn Bhd, has applied for an interim injunction to restrain four directors from interfering in its operations and accessing its premises in Penang.

Sentiment: Negative
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