Opening Daily Highlight
Mixed
Tariff Truce Recovery
Wed, 14-May-2025 03:47 pm
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+2.3%) resume trading on an upbeat manner with 29 out of 30 key index components closed in green as the key index closed at more than two months high, lifted by optimism surrounding the positive developments of trade deals between US and China over the weekend. The lower liners also extended their recovery mode. Meanwhile only the REIT and Healthcare sectors underperformed the positive sectorial peers, shedding 0.1% each.

 

Global Markets Review: Wall Street finished mixed as the Dow (-0.6%) pared down some of its previous session gains, but the S&P 500 (+0.7%) and Nasdaq (+1.6%) extended their lead, driven by chipmakers such as Nvidia and AMD on the announcement of semiconductor supply to Saudi Arabian firm Humain for a massive data-center project. European markets closed mostly upbeat, while Asian markets ended mostly positive, riding onto the US-Chhina temporary trade truce.

 

Market Outlook: Expectedly the local bourse closed sharply higher yesterday amid the positive developments surrounding US-China tariff truce, which perceived as a major de-escalation of the trade war between the world's two biggest economies. With the risk of recession over at US tapering, investors have now turned risk-on mode and that should bode well for the equities market on Wall Street. Going forward, we reckon the FBM KLCI may attempt to build onto yesterday’s strong movement, while also caution that quick profit taking activities could be on the cards. Meanwhile, the lower liners may continue to enjoy its recovery trend aided by the improved trading liquidity which saw trading volumes surpassed 4.0bn shares, while trading value exceeded RM4.0bn. 

 

Sector focus. We expect the Technology sector which rose to more than two months high may attempt to build onto the recent recovery stance. Further developments in regards to the divestment of Umobile equity stake in Digital Nasional Berhad (DNB) to telco operators and the Minister of Finance in bid to boost the deployment of 5G infrastructure may garner trading interests within the telco sector.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a gap up and closed at its intraday high as the key index is now approaching the SMA200 level. 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. Technically, the immediate resistance is located at 1,600. Support is envisaged around 1,530.

 

Company News

As U Mobile Sdn Bhd has been appointed to roll out the second 5G network in the country, its stake in Digital Nasional Bhd (DNB) will be taken over by CelcomDigi Bhd, Maxis Bhd,  YTL Power International Bhd and the Minister of Finance Inc (MOF Inc).

 

Keyfield International Bhd has secured a work order from PETRONAS Carigali Sdn Bhd to provide an accommodation work boat for offshore operations, as part of a panel contractor contract for offshore support vessel services,

 

DKSH Holdings Malaysia Bhd reported a net profit of RM48.17 million for the first quarter ended March 31, 2025 (1QFY2025), its highest quarterly profit since 4Q2013, driven by higher revenue, cost savings and favourable foreign exchange gains. 

 

Kerjaya Prospek Group Bhd said an adjudicator has ordered Yong Tai Bhd to pay the construction outfit RM75.46 million over an alleged unpaid contract for a mixed development project in Melaka, known as “The Apple”. 

 

HLT Global Bhd’s unit has received a counterclaim from a former customer for RM50.74 million in a dispute linked to glove-dipping machines it supplied.

 

The Federal Court has granted the Attorney General’s Chambers (AGC) leave to appeal against the Court of Appeal’s (COA) decision in favour of UEM Sunrise Bhd's unit UEM Land Bhd challenging the RM8.49 million additional tax assessment and penalty slapped by the Inland Revenue Board. 

 

Nestcon Bhd has secured a subcontract worth RM44.12 million for site clearing and earthworks at a 1,382-acre mixed development in Seremban, Negeri Sembilan. 

 

Dagang NeXchange Bhd, through its unit Dagang Net Technologies, has secured US$1.8 million (RM7.8 million) in contracts to support Saudi Arabia’s Makkah Route initiative in 2025. 

 

Nextgreen Global Bhd is entering the Libyan market through an exclusive distribution and supply agreement for its organic fertiliser products. 

 

OM Holdings Ltd is selling its 26% stake in Ntsimbintle Mining to South Africa’s Exxaro Resources for 1.86 billion rand (RM439.2 million).

 

Peterlabs Holdings Bhd has suspended its executive director Datuk Loh Saw Foong from his duties, executive functions and roles with immediate effect for two weeks, pending the outcome of an internal investigation.

Sentiment: Positive
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