Market Review & Outlook
Malaysia Market Review: The FBM KLCI (-4.0%) experienced a bloodbath, falling to a 16-month low due to widespread selling that mirrored a regional market decline. This was largely attributed to fears of a global trade war and a potential economic slump following US President Trump's tariffs. The lower liners also took a beating with all 13 major sectors closed in red.
Global Markets Review: Wall Street major indices – the S&P 500 (-0.23%), Dow (-0.91%) and Nasdaq (+0.1%), all closed lower after a volatile trading day, on concerns about a potential economic slowdown and rising inflation exacerbated by President Trump's continued push for tariffs and his threat of further increases on China. European markets also experienced turbulence on Monday, with the STOXX 600 (-4.5%) closing at its lowest point since Jan 2024. The slump, with major bourses falling between 4% and over 5%, was attributed to ongoing concerns about an aggressive trade war. Similarly, Asian markets retreated, with sharp declines seen across key indices: Nikkei 225 (-7.8%), HSI (-13.2%), China's Shanghai Composite (-7.3%), KOSPI (-5.57%), and SGX (-7.4%).
Market Outlook: President Trump's sweeping tariffs have triggered significant volatility and a downturn in global markets, including Wall Street, with the S&P 500 experiencing its largest two-day loss since the pandemic. The volatility, driven by fears of an economic slowdown and rising inflation, is likely to create a challenging environment for global trade. For Malaysia, this translates to heightened uncertainty, with potential negative implications for export-oriented sectors. While specific impacts will depend on the duration and extent of the trade disputes, the overall outlook for the Malaysian market is one of increased risk and potential for further volatility. Still, we gather that selling pressure appears to have eased on Wall Street overnight that slight improved sentiment may potentially lend some support to stocks across Bursa Malaysia today.
Sector focus. Amid market downturn turmoil, we continue to recommend a defensive investment strategy. Sectors like REITs, Utilities, and Healthcare (ex-gloves) are anticipated to provide relative stability, thus aiding in portfolio risk mitigation. Conversely, we recommend reducing exposure to more cyclical and highly exposed sectors, for the time being.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI gapped down again and closed sharply lower as the key index drifted further from the 1,500 psychological level. Indicators turned negative with the MACD Line slipped below the Signal Line, while the RSI fell into the oversold territory. The key index may attempt to finds stability over the interim. Immediate resistance is located at 1,500. Support is envisaged around 1,420.
Company News
Marine & General Bhd is acquiring a clean petroleum product tanker from Muhibbah Marine Engineering Sdn Bhd for RM55.19m.
KJTS Group Bhd has secured a 20-year project in Thailand, valued at approximately RM48.33m. The project involves a chilled water plant improvement at the Centara Grand Beach Resort & Villas Hua Hin.
LSH Service Master Sdn Bhd, a unit of Lim Seong Hai Capital Bhd, filed a police report against Hydroshoppe Sdn Bhd amidst the ongoing dispute over the Kuala Lumpur Tower concession.
Malaysia Smelting Corporation Bhd faces disruptions to tin metal production at its Port Klang smelter due to a gas pipeline explosion in Putra Heights. Despite the uncertainty surrounding the financial impact, the group does not anticipate a significant effect on FY2025 earnings.
Khee San Bhd reports that its manufacturing facilities are affected by the gas supply disruption caused by the Putra Heights pipeline explosion. The group has implemented contingency measures and states that it has sufficient inventories to meet demand until the expected resumption of gas supply on April 20th.
Petronas Gas Bhd is assessing the financial and operational impact of the Putra Heights gas pipeline fire. They are working with authorities to determine the cause, with the investigation expected to conclude by May 2025.
Chin Well Holdings Bhd clarifies that Trump's tariffs of 24% (Malaysia) and 46% (Vietnam) won't affect the group’s manufactured fasteners and wire products imported to the US. These products will instead be subject to a separate 25% tariff announced earlier.
Aemulus Holdings Bhd will jointly develop a new silicon capacitor test system with Samsung Electro-Mechanics Co Ltd (Semco). Aemulus will then exclusively manufacture and supply this system to Samsung from April 2025 to March 2027.
Sumi Saujana Group Bhd ahead of its ACE Market listing, has agreed with the Malaysian Palm Oil Board (MPOB) to produce and market palm-based intermediates and polyols for global industrial use.
Ge-Shen Corp Bhd appointed Datuk Tee Siew Kiong as non-executive chairman, replacing Datuk Keh Chuan Seng.
HHRG Bhd suspended CEO Fong Chee Khuen for two weeks pending an internal probe, with Datuk Paduka Ammar Shaikh Mahmood Naim assuming authority.
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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 |