Opening Daily Highlight
Mixed
Extended recovery
Tue, 29-Apr-2025 07:48 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+0.8%) took another step higher, supported by growing optimism over easing US-China trade tensions. The lower liners also advanced further, with the Healthcare sector (+1.3%) emerging as the top performer among the mostly positive sectoral peers.

 

Global Markets Review: Wall Street's major indexes ended mixed, with the Nasdaq (-0.1%) easing slightly amid anticipation of upcoming earnings releases. In Europe, markets closed higher, led by gains in the travel and banking sectors. Meanwhile, Asian equities were mixed, with investors evaluating the progress of trade negotiations between the US and regional countries.

 

Market Outlook: The calmer global market conditions lifted the local bourse yesterday and we expect the key index to build onto the recent positive momentum. We note that foreign funds remained as net buyers since last week, but we opined any sustained recovery in sentiment will remain dependent on news related to US trade policy developments. We hold our view that the tensions between the US and China have peaked, and both parties are likely to move toward negotiations soon. Similarly, the lower liners are expected to trend higher in line with the positive sentiment on the broader market. On the economic front, investors will be keeping a close tab onto EU’s consumer inflation estimates as well as US’s CB Consumer confidence to be release today.

 

Sector focus. We are positive on companies that are well-positioned to benefit from global supply chain diversification amid the intensifying trade war, while export-driven firms could also gain from the strong US Dollar. Nevertheless, we remain cautious on the oil and gas sector, as Brent crude prices fell to a four-year low in April, pressured by the US-China trade tensions and an unexpected move by OPEC+ to raise output by 411,000 barrels per day in May.

 

Technical Commentary: The FBM KLCI took another step higher as the key index is now a whisker away from the SMA50 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 over the interim but prospects of profit taking activities are piling up. Technically, the immediate resistance is located at 1,530. Support is envisaged around 1,500.

 

Company News (source: various)

Nestlé (M) Bhd’s net profit for the first quarter dropped 17.5% on higher input costs and marketing expenses, with largely flat revenue.

 

Bursa Malaysia Bhd’s net profit dropped nearly 9% in the first quarter from a year earlier, though the exchange operator said it is still confident to hit its targets.

 

British American Tobacco (Malaysia) Bhd said it will phase out its vapour products from the Malaysian market by the third quarter of 2025 to comply with the new Control of Smoking Products for Public Health Act 2024 (Act 852) that will take effect on Oct 1, 2025.

 

Fraser & Neave Holdings Bhd’s net profit dropped 15.16% to RM140.34 million for the second quarter ended March 31, 2025 (2QFY2025), from RM165.41 million a year ago, on increased tax expenses, losses from its dairy farm start-up and lower revenue.

 

Oriental Interest Bhd's net profit rose 159.90% to RM22.28 million for its second quarter ended Feb 28, 2025 (2QFY2025), from RM8.57 million a year earlier, on the back of higher revenue fuelled by strong performance in the property development segment.

 

Rohas Tecnic Bhd has firmed up the disposal of its 30% stake in Vietnam-based Phu My Vinh Construction and Investment Corp (PMV) for 500.82 billion dong (RM84.64 million) in cash.

 

Property group MKH Bhd’s wholly owned subsidiary, Serentak Maju Corporation Sdn Bhd, has proposed to acquire a piece of freehold land in Semenyih for RM42.21 million, cash.

 

Meta Bright Group Bhd has secured a RM30 million contract from China State Construction Engineering (M) Sdn Bhd (CSEC Malaysia) to supply ready-mixed concrete for the Boulevard 360 Bundusan project in Penampang, Sabah.

 

Duopharma Biotech Bhd, in which Permodalan Nasional Bhd holds a 44.1% stake, has secured another government supply contract worth RM1.81 million from a unit of Pharmaniaga Bhd.

 

Pintaras Jaya Bhd said Urusharta Jamaah Sdn Bhd, a special purpose vehicle established under the Ministry of Finance, has ceased to be a substantial shareholder of the company.

 

Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has offloaded 1.5 million shares, or a 0.06% stake, in Johor Plantations Group Bhd, trimming its stake to below the 5% threshold required for substantial shareholding status.

Sentiment: Positive
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