Opening Daily Highlight
Mixed
Back Above 1,500
Thu, 24-Apr-2025 06:23 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+1.0%) recovered all its previous session losses to close above 1,500 psychological level, driven by broad based buying with 25 out of 30 key index components closed in green. The lower liners rebounded amid the positive market breadth. Meanwhile, the Plantation sector (+0.03%) was the only decliner among the 13 major sectors, while the Technology sector (+3.6%) outperformed.

 

Global Markets Review: Despite reversing most of their intraday gains, Wall Street managed to march higher on a softer tone delivered by President Donald Trump over Federal Reserve Chair Jerome Powell position as well as potential revision to substantially lower tariffs on China. European stock markets also advanced on expectations over cooling US-China trade tensions. Meanwhile, Asia stock markets finished mostly upbeat with the Hang Seng index soaring 2.4% after US President Donald Trump indicated that final tariffs on Chinese exports to the US won’t be anywhere near as high as 145%.

 

Market Outlook: Having reclaimed the 1,500 psychological level, the key index is now looking to defend the aforementioned level. The positive developments surrounding US-China trade war with President Donald Trump taking a step back in terms tariff developments is expected to drive markets recovery stance. With markets cheering onto the said positive development, we reckon possibility of a favourable trade negotiation outcome between most nations to the US to also materialise during the 90-day tariff pause window. Trading sentiment appears to have also improved alongside with liquidity – offering rotational play opportunities as market players may take on a more aggressive stance. Meanwhile, on-going US corporate earnings will remain within investors’ radar over the interim.

 

Sector focus. Stronger crude oil prices due to fresh round of US sanctions on Iran is expected to drive trading interest within the Energy sector. Also, we reckon the Technology sector may attempt to build onto yesterday’s strong performance.
 


FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a gapped up to re-claim the 1,500 psychological level. Indicators turned positive with the MACD Line hovered above the Signal Line, while the RSI advanced above 50. Extended recovery may take cue should the key index manage to defend the 1,500 level in coming days. Technically, the immediate resistance is located at 1,520. Support is envisaged around 1,440.

 

Company News (source: various)

MN Holdings Bhd has secured two contracts from Sunview Group Bhd for solar interconnection projects in Kedah worth RM29.7mil.

 

Ramssol Group Bhd is eyeing potential revenue of one billion Thai baht, or about RM131.6 million, over the next three years from artificial intelligence (AI) solutions in Thailand. 

 

Auto parts supplier MCE Holdings Bhd has bagged new supply contracts worth RM120.67 million, including one to a Michigan, US-based company, JVIS USA, LLC, ahead of a 25% tariff on certain automobile parts.

 

United Plantations Bhd's net profit rose 22.87% to RM163.26 million in the first quarter ended March 31, 2025 from RM132.87 million a year earlier, on higher prices and production enjoyed in the plantation segment.

 

IGB REIT and IGB Commercial REIT reported higher earnings in the first quarter ended March 31, 2025, but warned investors of challenges ahead. 

 

Axis Real Estate Investment Trust’s net income rose 16.2% to RM49.13 million in its first quarter ended March (1QFY2025) from RM42.27 million in 1QFY2024, as new acquisitions, tenancies and rental rates boosted its property income. 

 

AME Real Estate Investment Trust on Wednesday reported a marginal increase in net property income (NPI) for its fourth financial quarter, thanks to contributions from two newly-acquired industrial properties which were, however, offset by higher operating expenses. 

 

Sarawak Consolidated Industries Bhd clarified that its subsidiary’s RM19.72 million recovery claim against Awana JV Suria Saga Sdn Bhd has not been withdrawn, but has instead been consolidated into a main suit to streamline litigation proceedings. 

 

Penang-based property developer Iconic Worldwide Bhd announced that the High Court ruled in favour of its medical unit, Iconic Medicare Sdn Bhd (IMED), in a dispute with glove machine supplier, Latex Form Sdn Bhd’s (LFSB).

Sentiment: Positive
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Market Mover
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