Opening Daily Highlight
Mixed
Cautious sentiment prevails
Wed, 07-May-2025 07:27 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI closed lower by 0.18%, weighed by lingering uncertainties over tariff policies. Most lower liners also ended in the red. Only two sectors—Consumer (+0.54%) and Plantation (+0.50%) closed higher, while Healthcare (-0.94%) and Industrial (-0.86%) led the losses. 

 

Global Markets Review: Wall Street ended lower as investors awaited further developments in the US-China trade talks and the Federal Reserve’s policy statement later tonight for clearer guidance on market direction. European markets also closed lower as investors braced for a flurry of corporate earnings, while most Asian markets ended higher, buoyed by positive regional sentiment.

 

Market Outlook: We expect the local market to trade negatively today, in line with the weak overnight close on Wall Street and continued uncertainty around global tariff negotiations. Additionally, the market may react with increased volatility following India’s overnight airstrikes on Pakistan, which could raise regional geopolitical concerns. Investors will be watching the FOMC statement scheduled for tonight closely for guidance on interest rate policy, with markets generally expecting the Fed to hold rates steady.

 

Sector focus. We continue to favour the Financial sector amid market uncertainty, as it remains a preferred destination for foreign inflows, especially with the MYR showing signs of strengthening against the USD. The Energy sector may also see some relief today following a rebound in international crude oil prices. Meanwhile, the Logistics sector could experience some volatility, as investors weigh the easing of tensions in the Red Sea—after Houthis pledged to halt attacks on shipping routes—as well as heightened geopolitical risks following the India-Pakistan conflict.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI extended its pullback as the key index looks to defend the SMA50 level. Indicators, however, remained positive with the MACD Line hovered above the Signal Line, while the RSI steadied above 50. Extended mild pullback may take precedence following the recent strong run-up. Technically, the immediate resistance is located at 1,550. Support is envisaged around 1,500.

 

Company News (source: various)

 

FGV Holdings Bhd on Tuesday clarified that it has not received any formal notice from the Federal Land Development Authority (Felda) regarding a potential takeover offer or any corporate exercise that would result in the group's privatisation or delisting from Bursa Malaysia. 

 

Hartalega Holdings Bhd  posted a net profit of RM14.48 million in the fourth quarter ended March 31, 2025 (4QFY2025), down from RM14.9 million a year ago, as lower non-operating income offset gains from improved operations.

 

Heineken Malaysia Bhd reported a net profit of RM122.15 million for the first quarter ended March 31, 2025 (1QFY2025), largely unchanged from RM122.48 million a year earlier, supported by lower interest expenses, effective cost control and improved financial efficiency following the Chinese New Year. 

 

Dufu Technology Corp Bhd’s net profit for 1QFY2025 surged 57.4% to RM6.97 million from RM4.43 million a year ago, thanks to higher sales of hard disk drive (HDD) components, which led to enhanced operational efficiency through improved economies of scale.

 

UOA Real Estate Investment Trust’s net rental income declined to RM17.81 million for the first quarter ended March 31, 2025 (1QFY2025) from RM18.48 million in the same quarter a year earlier, on higher maintenance costs. 

 

LFE Corp Bhd has bagged a subcontract worth RM50.58 million to undertake the mechanical, electrical and plumbing fit-out work for a hyperscale data centre in Elmina Business Park 1A.

 

PN17 company Ivory Properties Group Bhd is selling a double-storey detached commercial building known as The Birch House for RM18 million to settle its bank borrowings.

Sentiment: Positive
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