Market Review & Outlook
Malaysia Market Review: The FBM KLCI (-1.0%) mirrored the widespread losses across regional markets, as investors reacted negatively to President Trump's sweeping tariffs. All major indices, except for the REIT (+0.5%) on Bursa Malaysia finished lower.
Global Markets Review: Following the worst week for US stocks since the pandemic's onset, markets remain gripped by tariff-induced turmoil. Investors are searching for signs of a market bottom after President Trump's import levies rattled global assets, leading to the S&P 500's largest weekly drop since March 2020. The Nasdaq entered into a bear market territory, the Dow entered a correction, and oil prices sank. The selloff, surpassing pandemic-era losses, was driven by global recession fears. European markets also experienced a sharp weekly decline (-8.3% wow), marking their worst week of the year. Similarly, Asian markets closed mostly lower, with Japanese stocks mostly affected.
Market Outlook: We anticipate another week of potentially high volatility and cautious trading as markets continue to digest the implications of the US tariffs. The lack of immediate resolution to the trade dispute suggests that the risk-off sentiment could persist. Retaliation measures from China is expected to intensify global trade uncertainties. For now, investors are advised to remain defensive and closely monitor trade-related news, macroeconomic data, and central bank communications. Any significant shifts in the trade narrative or surprisingly positive economic data could trigger short-term rallies, but the underlying uncertainty is likely to remain a dominant factor.
Sector focus. In bid to navigate the current high level of uncertainty, we continue to advocate for a defensive investment approach. Sectors like REITs, Utilities, and Healthcare are anticipated to offer relative stability, helping to mitigate portfolio risk. Conversely, we recommend reducing exposure to more cyclical sectors, including Technology, Consumer Discretionary, Industrials, and Energy, for the time being.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a gap down as the key index briefly re-tested the 1,500 psychological level. Indicators remained mixed with the MACD Line hovered above the Signal Line, while the RSI is below 50. The downward bias consolidation may extend with trading range between 1,480-1,530. Immediate resistance is located at 1,530. Support is envisaged around 1,480.
Company News
Axiata Group Bhd delays Myanmar tower sale to June 30, 2025 (originally April 2025), following a recent earthquake; buyer remains undisclosed.
Malaysia Smelting Corp’s Port Klang smelter deliveries are disrupted due to a gas pipeline explosion, causing uncertain fuel resumption and potential tin shipment delays.
Lianson Fleet Group Bhd sells a vessel to a Dubai firm for US$6.90m (RM30.73m) to modernise its fleet for the oil and gas industry.
Radium Development Bhd will expand into healthcare by building a 140-bed hospital in Malacca (through A Famosa Specialist Hospital). Construction on the 7.11-acre Bukit Katil site is expected to start in 2H 2025 (pending approvals), with operations targeted for 1H 2028.
Mr DIY Group (M) Bhd’s founder Tan Yu Yeh steps down as executive vice chairman to become group adviser. His nephew, Shie Haur (CEO of MDIH Singapore), will become a non-independent, non-executive director. Yu Yeh is also MDIH Singapore's major shareholder.
KKB Engineering Bhd wins favourable RM10.06m adjudication decision against a contractor.
Ho Hup Construction Co Bhd’s subsidiary ordered to pay a contractor RM7.37m in an adjudication dispute.
Disclaimer
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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.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.397877 | 4.428426 |
EUR | 5.020163 | 5.029642 |
CNY | 0.602907 | 0.603502 |
HKD | 0.566843 | 0.571304 |
SGD | 3.340119 | 3.366686 |