Opening Daily Highlight
Mixed
Optimism Sparking from US-China Trade Deal
Tue, 13-May-2025 07:38 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+0.2%) took a step forward to close the week 0.3% higher on a weekly basis, spurred optimism surrounding the positive developments of trade deals between US and UK. The lower liners also extended their lead, while the sectorial peers closed mostly positive.

 

Global Markets Review: Wall Street marched sharply higher to log its best day in four weeks as the Dow jumped 2.8% following the positive developments over the US-China trade negotiations. European markets also advanced, while Asian markets finished on an upbeat tone.

 

Market Outlook: Amid the positive developments after the US and China agreed to suspend most tariffs on each other's goods over the course of 90 days, we believe the FBM KLCI may attempt to march higher today following the extended weekend break. The improved sentiment may also be supported by the recent announcement from Bank Negara to cut the SRR which will potentially inject RM19bn in additional liquidity to the banking system along with the return of foreign funds inflow as of late. We also expect the lower liners to build onto their recovery trend amid the improvement market sentiment. Economic wise, investors will be keeping a close tab onto Malaysia’s retail sales data later today as well as Eurozone’s ZEW Economic Sentiment Index.

 

Sector focus. We reckon the strong results posted by SMIC along with the stronger Dollar Index may buoy export-oriented Technology sector. The oil & gas sector may also thrive following the jump in crude oil prices. Meanwhile, gold-related stocks may take a step back amid the risk-on mode investment sentiment.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a bullish inside bar candlestick to recoup some of its previous session losses. Indicators remained positive with the MACD Line hovered above the Signal Line, while the RSI steadied above 50. Resumption of recovery remains largely on track upon a breakthrough above 1,550. Technically, the immediate resistance is located at 1,570. Support is envisaged around 1,520.

 

Company News

Westports Holdings Bhd has cut its outlook, and now expects no growth in container volume this year amid escalating international trade tensions. 

 

Sentral REIT kicked off 2025 with a 4.4% year-on-year decline in net property income to RM36.5 million in the 1QFY2025, as reduced revenue offset lower operating expenses in the first quarter. 

 

HeiTech Padu Bhd has proposed a one-for-four bonus share issuance to reward shareholders, followed by a private placement of new shares to raise up to RM43.7 million to finance the development of the National Integrated Immigration System (NIISe) project.

 

Muhibbah Engineering (M) Bhd has received an arbitration notice from a former subcontractor over a project that was mutually terminated nearly five years ago. 

 

Perak Transit Bhd has inked a memorandum of understanding with the Kangar Municipal Council, which has agreed to appoint Perak Transit to manage Terminal Perlis Sentral for 15 years, at an undisclosed contract value.

 

Yoong Onn Corp Bhd (KL:YOCB) reported a fire outbreak at its 60%-owned subsidiary TC Homeplus Pte Ltd’s factory and warehouse, which are located in a two-storey industrial building in Singapore.

Sentiment: Positive
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Market Mover
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