Opening Daily Highlight
Mixed
1,500 In Focus Again
Wed, 23-Apr-2025 07:07 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (-0.9%) halted a three-day winning streak on profit taking activities as the key index mirrored the weakness on Wall Street overnight. The lower liners also retreated on the back of the negative market breadth with decliners outnumbered advancers on a ratio of 2-to-1. Meanwhile, the Plantation sector (+0.1%) was the sole outperformer among the sectorial peers.

 

Global Markets Review: Wall Street major indices recovered all their previous session losses as the Dow jumped +2.7% following the positive remarks from Treasury Secretary Scott Bessent over trade tension between US-China along with strong earnings report from 3M despite IMF slashed US economic growth projection from 2.7% to 1.8% for 2025. European stock markets inched higher after recovering from their intraday losses after European Central Bank President Christine Lagarde opined that the disinflation process in the Euro area was nearing completion. Meanwhile, Asia stock markets ended mixed on uneased trade tensions along with concerns of potential tighter monetary conditions in Japan.

 

Market Outlook: With the FBM KLCI failing to advance past the 1,500 psychological level, profit taking emerged on concerns over the growing rift between US President Donald Trump and Federal Reserve Chairman Jerome Powell. Investors are also taking the aforementioned event as an excuse to lock in recent gains. We reckon the local bourse may attempt to find stability with the trading range between 1,470-1,500 levels with markets remain jittery on further tariff developments. On a brighter note, the improved sentiment on Wall Street may lend some support for the local bourse to maintain its recovery stance. On-going US corporate earnings will be a focal point over the interim, while economic wise, Malaysia’s inflation as well as US new home sales data slated to be release later today will be in investors’ radar.

 

Sector focus. The Ministry of Transport (MOT) move in evaluating a more structured mechanism regarding port charges is positive for the logistics sector, though tariffs may result in supply-chain disruptions. Meanwhile, the Visa Liberalisation Plan (PLV) for Chinese visitors is expected to buoy tourism-related players such retail players as hotel and airline operators.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a gapped down to retreat for the first time in four days as the key index is turning into a short-term consolidation pattern. Indicators turned mixed with the MACD Line hovered above the Signal Line, but the RSI retreated back below 50. Further consolidation may take place overtime. Technically, the immediate resistance is located at 1,520. Support is envisaged around 1,440.

 

Company News (source: various)

Malaysia Marine and Heavy Engineering Holdings Bhd’s (MMHE) major subsidiary has received a notice of arbitration from its subcontractor, with claims in damages of RM57.3mil.

 

Southern Steel Bhd (SSB) is disposing of a 55% stake (representing 12.88 million shares) in wholly-owned subsidiary Southern Steel Mesh Sdn Bhd (SSM) to Singapore-listed BRC Asia Ltd for RM61.05mil.

 

MGB Bhd is proposing to settle RM7.23 million with joint venture partner Aset AZG Sdn Bhd (AASB) to kickstart a serviced apartment project in Cameron Highlands which has been on the back burner for six years. 

 

Scanwolf Corporation Bhd said it has secured a RM16.63 million subcontract for the relocation of water supply in Rawang, Selangor.

 

DPS Resources Bhd is partnering Invest Energy Sdn Bhd to develop solar farms and other infrastructure to support its proposed artificial intelligence (AI) data centre and high-tech industrial park in Alor Gajah, Melaka.

 

Petronas Chemicals Group Bhd announced that its Pengerang Petrochemicals Complex in Johor — the group’s largest growth project under its olefins and derivatives segment in partnership with Saudi Aramco has commenced commercial operations in November 2024. 

 

Alpha IVF Group Bhd posted a 12.4% year-on-year decline in net profit for its third quarter, dragged by expansion costs and lower contributions from its Singapore operations. 

 

Norges Bank, which manages Norway’s government pension fund, has emerged as a substantial shareholder in automated test equipment (ATE) maker Pentamaster Corp Bhd with a 5.26% stake.

Sentiment: Negative
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