Market Review & Outlook
Malaysia Market Review: The FBM KLCI ended its six-day losing streak, closing 0.6% higher on last Friday, supported by bargain-hunting amid improved risk sentiment and a pullback in US Treasury yields. The financial sector led gains with a 0.9% rise, boosted by easing bond yields, as Maybank, Public Bank, and CIMB outperformed. Most sectors closed in positive territory except Utilities (-1.0%), Transport (-0.4%), and REIT (-0.2%).
Global Markets Review: Wall Street indices closed lower amid concerns over trade tensions and fiscal policy. Dow fell 0.6%, S&P 500 declined 0.7%, and Nasdaq dropped 1%. For the week, all three major indexes lost over 2%, pressured by President Trump’s tariff threats on tech products and rising Treasury yields linked to deficit worries. European markets also ended the week on a weaker note, largely driven by concerns over President Trump’s announcement of a 50% tariff on EU imports, set to take effect on 1 Jun 2025. Meanwhile Asian markets displayed mixed performances. Japan’s Nikkei 225 rose 0.5%, buoyed by positive domestic economic data. Conversely, Hong Kong’s Hang Seng Index and South Korea’s Kospi both fell 1.2%, weighed down by global risk aversion stemming from US fiscal policy uncertainties and escalating trade tensions.
Market Outlook: As investors react to mixed global signals and await fresh domestic catalysts, the KLCI is expected to start the week on a volatile manner. The cautious sentiment is largely driven by unsettled global markets amid concerns over US fiscal policies and ongoing trade tensions, which may keep risk appetite subdued in the near term. Selling pressure from foreign investors is expected to persist and exacerbate potential volatility. Nevertheless, the upcoming local corporate earnings season may provide fresh momentum to the market. Economic wise, investors will focus onto US consumer confidence data later tonight.
Sector focus. Investors are advised to remain selective, focusing on sectors with strong fundamentals such as financials, consumer staples, and utilities.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI formed a bullish inside bar candle as the key index snapped a six-day losing streak to defend the SMA50 level. Indicators, however, remained negative with the MACD Line lingered below the Signal Line, while the RSI hovered below 50. A potential consolidation may take precedence over the interim. Technically, the immediate resistance is located at 1,550, followed by 1,600. Support is envisaged around 1,500.
Company News (source: various)
FGV Holdings Bhd plans to increase its stake in eight subsidiaries owned by Koperasi Permodalan Felda Malaysia Bhd through deals totaling RM229.75m, aiming to streamline palm oil manufacturing and centralize services like logistics and security. The largest acquisition is a 49% stake in FGV Transport Services for RM77.9m.
IJM Corp Bhd has received government approval to proceed with a RM1.4bn, 15-kilometre elevated extension of the New Pantai Expressway, with construction starting in Q3 2025 and completion expected by 2029. The project connects three major highways and revives a previously scrapped plan.
Petronas Dagangan Bhd posted a 29.8% rise in net profit to RM293.5m in 1QFY2025, driven by stronger commercial fuel sales, despite a 3.2% decline in revenue. The company declared an interim dividend of 20 sen per share, up from 18 sen last year.
KLCCP Stapled Group recorded a 7.2% increase in 1QFY2025 net profit to RM201.48m, aided by full acquisition of Suria KLCC. It declared a higher interim dividend of 9.2 sen per stapled security.
Gas Malaysia Bhd saw a slight 2.4% drop in 1QFY2025 net profit to RM100.14m, affected by lower margins and higher expenses, partially offset by increased natural gas volume and joint venture gains. Revenue declined 1.5% to RM1.84bn.
Hibiscus Petroleum Bhd reported a net loss of RM115.97m in 3QFY2025 due to a RM167.3m one-off deferred tax liability linked to the UK’s Energy Profits Levy. Revenue fell 5.1% to RM572.8m, but it declared an interim dividend of one sen per share.
Paramount Corp Bhd saw its 1QFY2025 net profit surge 87.2% to RM14.4m on higher property sales, with revenue rising 26.2% to RM217.84m. No dividend was recommended.
Oriental Kopi Holdings Bhd posted a net profit of RM13.82m for 2QFY2025, driven mainly by café operations. Revenue totaled RM103.18m. No dividend was declared as this is its second interim report post-ACE Market listing.
SkyWorld Development Bhd reported a 20% drop in 4QFY2025 net profit to RM16.4m due to lower revenue from completed projects. Full-year net profit halved to RM54.2m amid a 35.3% revenue decline. It declared a final dividend of 0.6 sen per share.
Tan Chong Motor Holdings Bhd returned to profit in 1QFY2025 with RM4.14m net profit, mainly due to a RM54m one-off fair value gain. Revenue slipped 1.9% to RM553m, affected by softer consumer sentiment and competitive markets.
Symphony Life Bhd’s former CFO and adviser were acquitted of charges related to unauthorized share purchases after the prosecution withdrew the case. The CFO was also awarded RM792,000 in back wages following an unfair dismissal ruling.
Velesto Energy Bhd secured a US$90m drilling rig services contract in Indonesia for four years starting July 2025, expected to enhance rig utilization and earnings visibility through 2028.
InNature Bhd signed a MoU to acquire The Body Shop business in Singapore from The Body Shop International Ltd, expanding its beauty and retail footprint in the region.
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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 |