Opening Daily Highlight
Mixed
Pushing Towards 1,500
Mon, 21-Apr-2025 07:08 am
Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+1.1%) extended its recovery momentum to finish within a whisker away from the 1,500 psychological level, boosted broad-based buying activities with 27 out of 30 key index components finished higher. The lower liners also advanced, while all but the Transportation & Logistics (-0.3%) sector finished in green.

 

Global Markets Review: Both Wall Street and European markets were closed for the Good Friday public holiday. Over at US, the White House administration is studying the option to fire Federal Reserve Chairman Jerome Powell which could potentially lead to a negative opening when Wall Street resume trading. Elsewhere, the positive remarks from US President Donald Trump towards European Union in regards to a potential trade deal is expected to buoy European equities. Meanwhile, Asia stockmarkets drifted mostly positive following the positive progress between US-Japan trade negotiations.

 

Market Outlook: With sentiment improving in recent weeks, the FBM KLCI extended its recovery momentum as the key index looks to take another jab towards the 1,500 psychological level. However, we expect recovery could remain choppy in the interim as the trade dispute between US and China is far from over following Trump’s administration looks to impose levies on China’s vessel docking at US ports. The move could disrupt global shipping routes and may eventually set a stage for higher inflation. Looking ahead, investors will continue to monitor on a barrage of US corporate earnings releases this week including several giants such as Tesla, Alphabet, Amazon, Verizon, Chubb, Phillip Morris, IBM and AT&T. 

 

Sector focus. Energy sector may continue to take the spotlight as oil prices advanced for the fifth straight session on last Friday on tighter US sanctions on Iran and new OPEC+ compensation quotas. We advocate investors to stay out of Plantation sector after 3-months CPO futures price slipped below RM4,000/MT – the lowest level since September 2024.
 


FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed another bullish candle as the key index extended its recovery momentum. Indicators, however, remained mixed with the MACD Line hovered above the Signal Line, while the RSI is approaching 50. Recovery stance is expected to remain steadfast overtime. Immediate resistance is located at 1,520. Support is envisaged around 1,440.

 

Company News (source: various)

Eco World Development Group Bhd, SD Guthrie Bhd, and Negeri Sembilan state agency NS Corporation have formed a joint venture to develop the RM2.95 billion Eco Business Park VII in Negeri Sembilan's Malaysia Vision Valley 2.0.

 

YTL Communications Sdn Bhd, a 60%-owned unit of YTL Power International Bhd, has been appointed by Railway Assets Corp to develop fibre optic infrastructure along 1,600km of railway tracks. 

 

Meta Bright Group Bhd’s wholly-owned subsidiary, FBO Land (Serendah) Sdn Bhd, has signed agreements with Best Fresh Mart Sdn Bhd to develop and operate solar photovoltaic (PV) zero capex projects at Best Fresh Mart’s retail outlets in Kapar, Selangor, and Bukit Rambai Putra, Melaka.

 

Iris Corp Bhd has proposed an internal reorganisation to separate its investment holding function from its operations. 

 

CIMB Group has appointed Wut Thanittiraporn as the new president and CEO of CIMB Thai Bank, succeeding Paul Wong Chee Kin, whose four-year secondment to Thailand is coming to an end. 

 

Careplus Group Bhd plans to raise up to RM55.4 million via a rights issue to fund phase one of its NEV manufacturing hub in Chembong, Negeri Sembilan.

 

Ho Hup Construction Bhd has been classified as a PN17 issuer after its subsidiary defaulted on outstanding loan facilities of RM112.69 million, triggering listing requirements due to the company’s inability to provide a solvency declaration. 

 

AME Elite Consortium Bhd’s unit, AME Capital, has issued RM300 million in Islamic medium-term notes (IMTN) with a three-year tenure and a 4.02% annual profit rate.

 

Jaycorp Bhd’s 60%-owned unit, Jaycorp Green Energy Sdn Bhd, has awarded a RM40.6 million contract to a unit of Wasco Bhd to build a new biomass boiler facility in Pasir Gudang, Johor.

 

Econpile Holdings Bhd has secured a RM35.8 million subcontract for piling and substructure works for a proposed commercial project along Jalan Ampang, Kuala Lumpur.

Sentiment: Neutral
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