Opening Daily Highlight
Mixed
Steady Recovery Momentum
Fri, 25-Apr-2025 07:05 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+0.4%) extended its recovery run to strengthen above the 1,500 psychological level, lifted by buying activities in selected banking and utilities heavyweights yesterday. The lower liners also inched higher. Meanwhile, only the Consumer Products & Services (-0.1%), Plantation sector (-0.3%) and Healthcare sector (-0.2%) underperformed the positive sectorial peers.

 

Global Markets Review: Wall Street advanced with all three major indices closed in green yesterday, boosted by gains in technology shares as AI-related players rose after ServiceNow logged above market expectations results amid robust demand for its artificial intelligence offerings along with positive trade developments after US Treasury Secretary Scott Bessent said that an agreement of understanding on trade with South Korea could be reach as early as next week. European stock markets also extended their gains on the back of prospects of global trade tensions receding. Meanwhile, Asia stock markets ended on a mixed note with mild profit taking activities emerged after the previous session sharp gains.

 

Market Outlook: With the local bourse having defended the 1,500 psychological level, attempts to march higher are on the cards as the key index looks to extend its recovery streak towards end of the week. Improving trade developments (US & South Korea) offers brighter hopes of replication towards the rest of the nations over the 90-day tariff pause window. Traders will continue to bargain hunt onto beaten down stocks, albeit at a more gradual manner as uncertainties persist. With US corporate earnings releases heading to its peak, investors’ attention will also turn towards the release of US Michigan Consumer Sentiment data later tonight which may offer clues over the inflation prospects.

 

Sector focus. We continue to favour the Technology sector that could mirror the positive sentiment on Nasdaq as well as all “Magnificent Seven” closed in green overnight. We also like the Construction sector, riding onto key developments outlined in national blueprints as well as the favourable prospects of data center.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a bullish candle to stay afloat above the 1,500 psychological level. Indicators remained positive with the MACD Line hovered above the Signal Line, while the RSI steadied above 50. Extended recovery may remain in place should the 1,500 level continues to hold in coming days. Technically, the immediate resistance is located at 1,520. Support is envisaged around 1,440.

 

Company News (source: various)

Tenaga Nasional Bhd (TNB) has more than doubled its budgeted capital expenditure (capex) to RM42.9 billion - comprising RM26.6 billion in base capex and RM16.3 billion in contingent capex - to support infrastructure development for Malaysia’s energy transition.

 

Binastra Corp Bhd is acquiring a 51% equity interest in LF Lansen Sdn Bhd for up to RM44.8mil in cash, to be paid in three stages.

 

ViTrox Corp Bhd said that its net profit jumped 40.2% in the first quarter from a year earlier, driven by stronger sales and a more favourable product mix. 

 

Unisem (M) Bhd began the financial year with a 29% decline in first-quarter earnings from a year earlier, as margin pressure from rising costs offset revenue gain. 

 

Atlan Holdings Bhd’s fourth quarter net profit doubled, lifted by a RM16.76 million gain related to the compulsory acquisition of a subsidiary's land in Kedah by the government.

 

Luxchem Corp Bhd’s net profit for the first quarter ended March 31, 2025 (1QFY2025) fell 8.6% to RM10.57 million from RM11.56 million a year ago, dragged by higher operating cost, which increased 9.7% to RM13.77 million from RM12.56 million. 

 

Pantech Global Bhd announced a special dividend of one sen after its fourth quarter net profit jumped 373% from the previous quarter, driven by a gain on bargain purchase and two months of earnings from newly acquired companies. 

 

Chin Hin Group Bhd completed its purchase of an additional 12.27% stake in Ajiya Bhd for RM54.2 million, raising its stake in the building materials maker to 66.36%.

 

Magma Group Bhd, which is primarily in hotel management and property development, announced the emergence of several new substantial shareholders on Thursday, including former national badminton player Datuk Lee Chong Wei. 

 

IGB Real Estate Investment Trust and IGB Commercial Real Estate Investment Trust will see their former group chief financial officer Chai Lai Sim return from retirement to take the helm at both REITs. 

 

Steel Hawk Bhd has secured a three-year contract from Petronas Carigali Sdn Bhd for splash zone structural repairs and maintenance for Peninsular Malaysia and Sarawak assets. 

 

Perdana Petroleum Bhd said its wholly owned subsidiary Intra Oil Services Bhd (IOS) has been sued by Azsat Global Sdn Bhd, claiming RM6.7 million for loss of revenue after IOS terminated contracts for services of its vessels to Azsat.

Sentiment: Positive
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