Market Review & Outlook
Malaysia Market Review: The FBM KLCI (-0.1%) entered consolidation mode on last Friday as profit taking activities continued. The lower liners also closed mixed, in line with the broader market performance. Except for the Financial Services sector (+0.1%), all other sectors ended in the red with the Technology (-2.1%) and Energy (-1.1%) sectors leading the decline.
Global Markets Review: Wall Street ended last week on a positive note as investors shrugged off disappointing consumer sentiment data and persistent inflation concerns. S&P 500 (+0.7%) rose for a fifth consecutive session, while tech-heavy Nasdaq gained 0.5% and the Dow climbed 0.8%. European markets also advanced on Friday, marking a fifth straight weekly gain on upbeat earnings that helped sustain the rally triggered by the temporary US-China trade truce. In contrast, Asian markets ended the day mixed. Japan’s Nikkei 225 was flat despite data showing that the country’s economy contracted faster than expected in the first quarter of 2025. Meanwhile, Hong Kong’s Hang Seng Index declined 0.5%, dragged by earnings miss from E-commerce giant Alibaba.
Market Outlook: As optimism from the temporary tariff cuts between the world’s two largest economy begins to fade, the local bourse has entered a consolidation phase. Malaysia’s 1Q2025 GDP grew at 4.4% yoy, in line with the official flash estimate. However, BNM’s governor cautioned that the balance of risks to Malaysia’s economic growth in 2025 remains tilted to the downside due to deepening slowdowns in major trading partners impacted by ongoing trade restrictions. Investors will now shift their attention to the upcoming local corporate earnings season, which could offer fresh catalyst. Meanwhile, the US sovereign rating downgrade by Moody's last Friday may dampen market sentiment, amid rising concerns over long-term fiscal sustainability and the looming US debt time-bomb.
Sector focus. The Healthcare sector, particularly glove makers, may attract renewed investor interest amid a spike in Covid-19 cases in Hong Kong, Singapore and Thailand.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI has formed another bearish candle to extend its pullback mode following the recent strong gains. Indicators, however, remained positive with the MACD Line hovered above the Signal Line, while the RSI steadied above 50. A potential consolidation may take precedence over the interim. Technically, the immediate resistance is located at 1,600. Support is envisaged around 1,530.
Company News (source: various)
Maxis Bhd’s net profit rose 5% to RM371.1 million for the first quarter ended March 31, 2025 (1QFY2025) from RM353 million a year before, thanks mostly to cost control.
PIE Industrial Bhd’s profit for 1QFY2025 jumped 54.8% to RM15.02 million from RM9.7 million, thanks to higher demand from its existing customers and lower provision for slow-moving inventories.
Mi Technovation Bhd, a semiconductor solutions provider, reported a 34.4% year-on-year (y-o-y) drop in net profit to RM17.59 million for 1QFY2025, from RM26.79 million, due to unfavourable foreign exchange movements, lower interest income and increased tax expenses.
CSC Steel Holdings Bhd posted a 44.2% y-o-y jump in net profit to RM12.59 million in 1QFY2025, from RM8.73 million a year ago, thanks to lower raw material costs.
Avillion Bhd, 21.8%-owned by Datuk Dani Abdul Daim, son of the late Tun Daim Zainuddin, plans to raise RM11.5 million through a private placement of 283 million new shares to refurbish one of its main hotels, Avillion Port Dickson.
Malaysian Resources Corp Bhd's unit Lembaran Prospek Sdn Bhd (LPSB) will build a new RM2.94 billion sports complex in Shah Alam, Selangor to be paid with a combination of land and cash.
A joint venture between Hextar Capital Bhd’s associate, Transgrid Ventures Sdn Bhd (TGV), and CD Electrical Engineering Sdn Bhd has won a RM427.5 million contract from Tenaga Nasional Bhd to build Malaysia’s first 500-kilovolt (kV) power transmission system, the highest voltage level in the country.
Magma Group Bhd has signed a partnership with Nasdaq-listed Chagee to tap the Chinese premium tea chain business in Malaysia.
Pekat Group Bhd’s indirect 60%-owned unit, EPE Switchgear (M) Sdn Bhd, has secured a RM135.24 million contract from Tenaga Nasional Bhd to undertake the supply, installation, testing and commissioning of 33 kilovolt (kV) and 11kV gas insulated switchgear and related equipment for TNB’s electricity distribution network.
Electronic manufacturing services firm EG Industries Bhd has secured a deal from a US-based firm to supply consumable network and artificial intelligence (AI)-related products for the global market.
Samaiden Group Bhd has secured a RM108.6 million contract to carry out engineering, procurement, construction and commissioning works for the development of a large-scale solar photovoltaic project. Separately, Samaiden announced the mutual termination of its RM115.6 million letter of award from BTM Resources Bhd for the construction of a 10-megawatt (MW) biomass power plant.
Gamuda Bhd is buying three plots of land measuring 336 acres combined for RM248.7 million near its current project Gamuda Cove.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.212042 | 4.248408 |
EUR | 4.921000 | 4.929487 |
CNY | 0.591903 | 0.592919 |
HKD | 0.540309 | 0.544492 |
SGD | 3.268153 | 3.293573 |