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Road To Recovery
Fri, 18-Apr-2025 05:49 am
by Research Team • Apex Research

Malaysia Market Review: KLCI closed higher (+0.4%), recovering all intraday losses, supported by Chinese President Xi Jinping’s Southeast Asia tour aimed at reinforcing economic ties amid US-China trade tensions. Financial Services, Energy, and Industrial sectors led gains, with CIMB (+0.7%), Tenaga (+0.3%), and Maybank (+0.3%) as key movers. However, the Plantation sector underperformed, with KLK (-1.0%), PPB (-0.7%), and SDG (-0.7%) as top laggards.

 

Global Markets Review: Wall Street closed with mixed note, as the Dow (-1.3%) and Nasdaq (-0.1%) were primarily weighed down by UnitedHealth's disappointing earnings and Nvidia fell on US export curbs. In contrast, the S&P 500 closed slightly higher (+0.1%), lifted by a surge in Eli Lilly's stock following positive news regarding its weight-loss pill. Most European stocks declined, with the STOXX 600 slipping 0.3%, following the European Central Bank’s 25bps rate cut to 2.25%, as expected. Asian stocks rebounded on Thursday, driven by optimism surrounding US tariff negotiations. Hong Kong’s Hang Seng index surged 1.7%, bolstered by expectations of China engaging in trade talks with the US. In contrast, the CSI 300 remained mostly flat. Japan’s Nikkei 225 rose 1.1%, fuelled by a 3.9% export growth in Mar 2025, marking its sixth consecutive month of growth. South Korea’s KOSPI gained 0.7% after the central bank signalled the possibility of a rate cut in May t2025 o counter economic risks posed by US tariffs.

 

Market Outlook: FBM KLCI demonstrated resiliency yesterday, buoyed by optimism revolving regional geopolitical developments. However, we maintain a cautious stance as uncertainties persist, particularly as any significant shifts in tariff policies could heighten market volatility. We expect the KLCI to trade within the 1,470-1,490 range heading into the weekend. With sentiment turning more favourable as of late, mild bargain hunting activities may persist. The on-going of corporate earnings from Wall Street will likely influence investor sentiment in the weeks ahead. Back home, investors will keeping a close watch onto the advance reading of Malaysia’s Q1 2025 GDP data slated to be release later today.

 

Sector focus. Maintain a conservative outlook on the stock market 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 amidst market volatility

 

Technical Commentary: The FBM KLCI formed a bullish candle as the key index turned into a short-term consolidation pattern. Indicators remained mixed with the MACD Line hovered above the Signal Line, while the RSI is approaching 50. Extension of consolidation may take shape. Immediate resistance is located at 1,500. Support is envisaged around 1,440.

 

Company News (source: various)

Hextar Technologies Solutions Bhd becomes the largest shareholder in Widad Group Bhd with a 23.0% stake after injecting a 10.4-acre land for RM31.3m.

 

Chin Hin Group Property Bhd partners with Fiamma Holdings Bhd for a RM1.0bn mixed-use project near KLCC.

 

Mudajaya Group Bhd faces a lawsuit from THB Power Sdn Bhd over a disputed RM60.6m payment claim.

 

Datuk Eddie Ong Choo Meng reduces his stake in Perak Transit Bhd to 4.9%, selling 1.5%.

 

Meta Bright Group Bhd signs a zero-capex contract to install solar PV systems at Best Fresh Mart outlets.

 

Urusharta Jamaah Sdn Bhd sells two million shares in NEXG Bhd, reducing its stake to 4.94%.

 

Ancom Nylex Bhd to begin production of new active ingredients for agricultural pesticides soon.

 

MN Holdings Bhd secures a RM180m contract to build a substation for a data centre.

 

Sunsuria Bhd signs a deal with Kwasa Land Sdn Bhd to develop a RM492m affordable housing project.

 

T7 Global Bhd secures a five-year contract from Petronas Carigali Sdn Bhd for EPC services.

Sentiment: Positive
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