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Market Turbulence Continues
Thu, 17-Apr-2025 06:39 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: KLCI closed lower (-0.6%) on Wednesday, weighed down by persistent profit-taking amid concerns over global trade tariffs. Financials, Plantation, and Industrial Products sectors were the biggest laggards, with SIME (-5.5%), HLFG (-2.8%), and NESTLE (-2.8%) as key losers. On the other hand, REITs and Healthcare were among the few sectors to close in the green as trading activities shifted to a more defensive stance.

 

Global Markets Review: Major indices on Wall Street closed sharply lower, with the Dow (-1.7%), S&P 500 (-2.2%), and Nasdaq (-3.1%) were bogged down by tariff concerns and Nvidia’s additional US$5.5bn cost related to tighter US export rules. European stocks followed suit, with the STOXX 50 and STOXX 600 dropping 0.6%, weighed down by a 6.5% fall in ASML shares after weak Q1 bookings. Most Asia-Pacific markets also closed in the red, with tech stocks hit hard by Nvidia’s warning and lingering trade war concerns. The Shanghai CSI 300 and Hang Seng fell 2.2%, while Japan’s Nikkei 225 and South Korea’s KOSPI both slipped 0.7%.

 

Market Outlook: FBM KLCI was pressured along with regional market weakness, falling below the 1,480 mark amid elevated volatility driven by ongoing policy uncertainties. With overnight negative developments in the US markets, we expect a spillover effect onto the local key index will likely to trade within the 1,470-1,490 range. Technology stocks may remain under pressure, impacted by Nvidia’s warning and ASML’s disappointing Q1 net bookings, further dampening investor sentiment. On a brighter note. the signing of 31 MOUs between Malaysia and China during President Xi’s visit presents potential for stronger FDI in the near future.

 

Sector focus. Volatility persists due to ongoing uncertainty surrounding the impact of Trump’s tariffs on the economy. We maintain a conservative approach and advise investors to adopt a defensive strategy in the near term, focusing on sectors like REITs, Utilities, and Financials, which offer solid dividend yields and act as safe havens during market volatility.

 

Technical Commentary: The FBM KLCI formed a bearish candle as the key index now drifted further from the 1,500 psychological level. Indicators remained mixed with the MACD Line hovered above the Signal Line, while the RSI is approaching 50. A short-term pullback beckons over the near term. Immediate resistance is located at 1,500. Support is envisaged around 1,420.

 

Company News (source: various)

Sapura Industrial Bhd rebranded to separate from Sapura Group, focusing on component manufacturing as part of its diversification strategy. 

 

Gas Malaysia Bhd confirmed that gas supply in the northern region and parts of Klang Valley has stabilised, with full restoration in progress.

 

CapitaLand Malaysia Trust reported a 9.6% YoY increase in net property income for 1QFY2025, boosted by retail rental growth and Glenmarie Distribution Centre.

 

Hextar Technologies Solutions Bhd is selling 3 acres of industrial land in Johor for RM16m, generating a RM5m gain, with proceeds allocated to its fintech app, MoneyX.

 

Golden Land Bhd is selling a 95% stake in Indonesian palm oil units for RM151.5m, expecting a RM25.95m net gain.

 

SkyWorld Development Bhd acquired a 3.03-acre plot in Mont Kiara for RM110m for high-end residential development.

 

Sapura Energy Bhd has secured multiple contracts worth nearly RM100m for offshore vessels in Malaysia and Thailand, ensuring activity through FY26.

 

Bina Puri Holdings Bhd announced the retirement of its founder, Dr Tan Cheng Kiat, and deputy executive chairman Tan Sri Tee Hock Seng.

 

Paragon Globe Bhd is selling a 3.53-acre land in Tanjung Kupang, Johor for RM19.2m

 

OCK Group Bhd shareholders have approved a RM91m investment in a 116 MW large-scale solar power plant in Malaysia. 

 

Nextgreen Global Bhd is partnering with Xiamen C&D Paper & Pulp to build a RM900m paper pulp plant in Pahang.

 

Nexgram Holdings Bhd faces a winding-up petition by Maybank Islamic over an unpaid RM1.77m debt.

Sentiment: Negative
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