Opening Daily Highlight
Mixed
Recovery In Sight
Thu, 10-Apr-2025 07:09 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (-2.98%) took another beating, hitting a 21-month low, exacerbated by growing anxieties over the escalating US-China tariff war and potential recession, led to a substantial erosion of market value, marking the fifth consecutive day of losses and an 8.3% cumulative decrease since the latest US tariff announcement. Nearly all constituent stocks of the KLCI closed in negative territory, with CIMB contributing the most to the index's decline. Notably, newly listed ACE Market stock SumiSaujana experienced a sharp 25.0% drop.

Global Markets Review: Trump has announced a 90-day pause and reduced tariffs to 10% for all countries except China, which faces a potentially higher tariff of 125%, triggering a historic stock market recovery. The S&P 500 (+9.5%), Dow Jones (+7.8%), and Nasdaq (+12.1%) all skyrocketed, marking the Dow's largest percentage increase since March 2020. However, European markets ended broadly lower with the STOXX600 (-3.5%) slumping, reflecting growing unease over the impact of US tariffs and subsequent countermeasures from trading partners, including the EU and Canada. Meanwhile, Asia-Pacific markets showed mixed results, with the Nikkei 225 fell sharply (-3.9%), while the HSI (+0.7%), KOSPI (-1.7%), CSI 300 (+1.0%), and Shanghai Composite (+1.3%) saw varying degrees of movement.

Market Outlook: Despite lingering trade concerns that might temper gains, Bursa Malaysia could stage a rebound, spurred by Wall Street's strong recovery and potential bargain hunting from oversold levels. The positive developments in tariff announcement may spark a relief rebound and stabilise sentiment over the interim. We reckon investors may bargain hunt onto beaten down companies following the recent rout which left most stocks tethering at multi-month lows. Meanwhile, investors will be closely monitoring the release of the US inflation data which may provide clearer signals over the future interest rate direction.

Sector focus. Following Wall Street's skyrocketing performance, the previously hard-hit technology and banking sectors in KLCI could experience a strong rally rebound, potentially fuelled by renewed risk appetite. A broad base recovery could take shape with the Energy sector to be in focus as well following the sharp rebound of oil prices.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI endured another session of volatility as the key index is currently resting at the 1,400 support level. Indicators stayed negative with the MACD Line hovered below the Signal Line, while the RSI lingered in the oversold territory. A potential technical rebound may take precedence today. Immediate resistance is located at 1,470. Support is envisaged around 1,400.

 

Company News

AMMB Holdings Bhd’s CFO resigns, possibly joining Maybank. AMMB's CFO Shafiq Abdul Jabbar is resigning effective July 1st (garden leave starts April 10th) to pursue other opportunities, with industry sources linking him to the CFO role at Maybank. AMMB's CEO will temporarily oversee finance.

KIP Real Estate Investment Trust is buying four retail properties in Kuala Selangor and Kuantan for RM118.0m, a suburban expansion involving related parties, boosting portfolio to RM1.5bn.

Candy and bottled water maker Khee San Bhd's manufacturing operations are fully back to normal after a gas supply disruption was resolved.

Sapura Energy Bhd won a RM40.0m contract for offshore facility maintenance in Peninsular Malaysia, starting in March with a potential extension.

Jati Tinggi Group Bhd secured a RM30.3m subcontract for power cable relocation work in Penang.

AWC Bhd secured an RM18.4m 10-year concession to build and operate a waste collection system at the new Gombak transport hub.

Hibiscus Petroleum Bhd’s PM3 CAA production sharing contract in Malaysia has been extended for 20 years until 2047.

HHRG Bhd's unit obtained a court order restricting its former managing director and two others from entering company premises.

Sentiment: Negative
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Market Mover
Settlement Rates
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