Market Review & Outlook
Malaysia Market Review: Despite a brief rebound after Monday's 16-month low, the FBM KLCI closed slightly lower by 0.02%, contrasting with regional markets recovery. Market sentiment improved on bargain hunting activities after the selloff, but cautiousness prevails. Top gainers included PETDAG and HEIM, while DLADY and KLK were among the biggest losers. Mixed performance was seen among banking stocks. Meanwhile the Plantation sector (-1.8%) was the sole underperformer among the sectorial peers yesterday.
Global Markets Review: Wall Street experienced a volatile Tuesday, initially rallying on hopes of tariff negotiations, but ultimately closing sharply lower with the Dow (-0.8%), S&P 500 (-1.5%) (near bear market), Nasdaq (-2.1%) all finished in red. Apple led losses on looming 104% China tariffs, fuelling trade policy anxiety. European markets rebounded sharply, with the STOXX 600 (+2.7%) after a significant drop on Monday. The rally mirrored rebounds in Asia-Pacific and US markets, fuelled by dip buying and hopes for US tariff negotiations. Similarly, Asian markets saw significant gains with Nikkei 225 (+6.0%), HSI (+1.5%), KOSPI (+0.26%), CSI 300 (+1.7%), and Shanghai Composite (+1.5%).
Market Outlook: Given the volatile overnight trading on Wall Street, where an initial rally faded into a sharp decline due to renewed concerns over US-China trade tariffs, the FBM KLCI is likely to ring the bell on a cautious note. Investors may also take the opportunity to lock in yesterday’s gains, if any. With concerns over global economic growth remain on the forefront, the lower are expected to pare down some of their previous session gains as well. Hence, we continue to advocate the wait-and-see approach before taking further positions. Meanwhile, investors will be keeping a close tab onto the release of FOMC minutes meeting later tonight to gather guidance over the US interest rate future direction.
Sector focus. Sectors with strong links to global trade and technology might experience more significant pressure. Domestic-oriented sectors might show more resilience but are unlikely to be completely immune to the overall negative sentiment. Sectors such as REITs, Utilities, and Healthcare are anticipated to provide relative stability, thus aiding in portfolio risk mitigation.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI stabilised after closing relatively unchanged again as the key index remains relatively distant from the 1,500 psychological level. Indicators remained negative with the MACD Line hovered below the Signal Line, while the RSI lingered in the oversold territory. Volatility may take hold over the near term. Immediate resistance is located at 1,500. Support is envisaged around 1,420.
Company News
AEON Credit Service (M) Bhd achieved its best quarterly earnings in 11 quarters for 4QFY25, with net profit up 10.1% YoY to RM130.97m on higher revenue (+14.6% YoY to RM575.0m) and bad debt recoveries. A final dividend of 14.5 sen per share was declared, totaling 28.75 sen for FY25 (FY24: 28.25 sen).
Matrix Concepts Holdings Bhd will acquire stakes in Selangor property businesses from a shareholder group for RM77.9m cash.
Fajarbaru Builder Group Bhd secured a RM63.7 million construction contract from S P Setia's unit in Klang, Selangor.
Yong Tai Bhd partners with Taghill Holdings for a RM183.3m serviced suite project in Melaka, expecting RM28m capital entitlement.
The High Court rejected Hydroshoppe's and MKLSB's bid to stop the KL Tower concession award to Lim Seong Hai Capital Bhd's unit.
MBSB Bank withdrew its RM116.13m lawsuit against KNM Group Bhd's indirect subsidiary.
Northern Solar Holdings Bhd plans to collaborate with a Chinese state-owned enterprise unit for large-scale solar EPCC jobs.
Petronas Gas Bhd reports its Central Zone pipeline services disrupted by the Putra Heights fire, impacting 7.0% of a shipper's volume.
Panasonic Manufacturing Malaysia Bhd anticipates a 3.0% annual revenue loss due to the Shah Alam gas supply disruption.
Subur Tiasa Holdings Bhd faces its fourth consecutive year of its audited accounts being flagged with material uncertainty by its auditor.
Disclaimer
The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.
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.
Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.
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 |