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Tue, 15-Apr-2025 06:32 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: KLCI ended higher (+1.8%) on Monday, lifted by continued bargain-hunting and improved regional sentiment following positive trade developments between the US and China. Utilities, Financials, and Technology led the gains, with Tenaga (+1.2%), CIMB (+1.2%), and Inari (+7.2%) among top performers. Meanwhile, the Healthcare sector (-1.3%) was the sole underperformer.

 

Global Markets Review: Wall Street opened the week higher as Trump’s unexpected tech tariff exemption sparked a rally in semiconductors and electronics, pushing the Dow (+0.8%), S&P 500 (+0.8%), and Nasdaq (+0.6%) into positive territory. European markets followed suit, with the STOXX 600 closing higher (+2.7%) as easing US tariff concerns lifted sentiment across the region. Asia-Pacific markets also closed mostly higher on Monday, reacting positively to the surprise exemption. In China, the Hang Seng Index led regional gains (+2.4%) on a sharp rebound in tech stocks, while the CSI 300 ended slightly higher (+0.2%) amid cautious optimism. Elsewhere, Japan’s Nikkei (+1.2%) and South Korea’s KOSPI (+0.9%) closed higher, led by tech and chip stocks, though sentiment remained cautious on trade policy clarity.

 

Market Outlook: The FBM KLCI is expected to trade within the 1,470–1,490 range today, as investors appear to be filtering out short-term uncertainties and are increasingly hopeful that ongoing negotiations will lead to more favourable terms. Already, US President Donald Trump provided a relief to the automotive sector in the latest tariff developments. Nonetheless, cautiousness persists ahead of the 90-day tariff pause expiry, and market volatility may remain in the front gear. Nonetheless, we expect the ongoing release of corporate earnings in the US will play a stronger influential role in shaping investor sentiment over the coming weeks.

 

Sector focus. While market sentiment has shown signs of recovery, caution still prevails amid lingering uncertainties surrounding the 90-day tariff pause and global policy outlook. As such, investors are advised to remain defensive in the near term, focusing on selective sectors like REITs and Utilities, which offer attractive dividend yields and act as safe havens during periods of heightened volatility.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a gap up to finish sharply higher as the key index started off the week on a strong footing yesterday. Indicators, however, remained negative with the MACD Line hovered below the Signal Line, while the RSI is below 50. Short-term consolidation may take precedence after a volatile week. Immediate resistance is located at 1,500. Support is envisaged around 1,420.

 

Company News

Reach Energy Bhd will be suspended on Apr 22 and may be delisted on Apr 24 after Bursa rejected its third extension request for a regularisation plan. Appeal deadline is Apr 21.

 

Cahya Mata Sarawak Bhd is awaiting state approval to start a second clinker line in Mambong, doubling capacity to 1.92m tonnes. Completion is targeted for Mar 2027.

 

Able Global Bhd said MACC has closed its investigation into the Group and CEO with no charges filed.

 

Pestech International Bhd failed to block arbitration over its guarantee in the terminated Gemas–JB rail subcontract. The High Court dismissed its bid and allowed YTL Construction’s application to proceed. Pestech plans to appeal the ruling.

 

Bina Puri Holdings Bhd faces a winding-up petition from Wisma Majujaya over an unpaid RM30m court judgment.

 

Jentayu Sustainables Bhd signed a 40-year PPA for its RM2.8b 162MW Sabah hydro project, set to start by Jun 2029. It is expected to generate RM300m in annual revenue.

Sentiment: Positive
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Market Mover
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