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Navigating Trade Tensions and Volatility
Wed, 04-Jun-2025 06:52 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: FBM KLCI closed lower at 1,503.25 (-0.3%), weighed down by selling pressure across regional emerging markets due to concerns over the ongoing US tariff conflict. Sector-wise, 4 out of 13 sectors showed slight rises, with REIT gaining 0.6%, telco & media edging up 0.3%, and property up 0.2%. The largest declining sectors were industrial products & services, with a 1.7% decline, and tech, down 1.4%.

 

Global Markets Review:  Wall Street closed with modest gains on Monday, with the Dow up 0.5%, the S&P 500 rising 0.6%, and the Nasdaq gaining 0.8%, driven by strong earnings from NVDIA. The European STOXX 600 rebound in modest gain with 0.01% due to key trade talks on the steel import duty hike. Asian markets showed a mixed performance after China’s manufacturing activity in May shrank at fastest pace. Japan's Nikkei 225 ended flat at -0.06% as investors grew cautious due to recent US tariff unpredictability. Hong Kong's Hang Seng led gains in the APAC region with 1.5% and China's CSI 300 added choppy trade 0.4%. South Korea markets were closed for polling day.

 

Market Outlook: We expect the FBM KLCI to remain volatile due to prevailing external headwinds, particularly the US-China trade conflict. This follows the tariffs talk between the US Trade Representative and the European Commissioner for Trade, concerning the 50% steel import duties, which took place in Paris at 9am local time. The key index is likely to defend the 1,500 level over the near term. Investors will be keeping a close tab on steel tariff talks between the US and EU later today.

 

Sector focus. We remain optimistic about power ancillary sectors and blue-chip stocks, viewing them as a bargain-hunting opportunity. Due to market volatility ahead, we also favour defensive sectors such as REIT and logistics.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed another bearish candle for the sixth straight session as the key index drifted further SMA50. Indicators remained negative with the MACD Line lingered below the Signal Line, while the RSI hovered below 50. A potential consolidation may take place as the key index attempts to find stability. Technically, the immediate resistance is located at 1,550, followed by 1,600. Support is envisaged around 1,500.

 

Company News (source: various)

Cypark Resources Bhd appointed Tan Sri Abdul Wahid Omar as new chairman and independent non-executive director.

 

Kawan Renergy Bhd chairman Chuah Chaw Teo resigns, citing time constraints resulting from personal and corporate commitments.

 

Zelan Bhd ordered to pay RM22.4m to subcontractor due to a construction dispute.

 

Ta Win Holdings Bhd sells Port Klang factory for RM44.5m. Despite a net loss of RM3.6m on the sale, the Group deems the deal reasonable due to the property's specialised nature for copper wire and rod manufacturing, limiting its market appeal.

 

Edelteq Holdings Bhd has partnered with another company to create a joint venture (JV) focused on producing automated optical inspection (AOI) machines.

 

Taghill Holdings Bhd CEO Ng Wai Hoe resigns, citing personal reason.

 

Deleum Bhd completes acquisition of a 70% stake in Indonesia’s PT OSA Industries for RM31.3m. This move strengthens the Group’s regional presence and valve maintenance capabilities.

 

CapitaLand Malaysia Trust plans RM250m private placement to repay borrowings.

 

Oasis Harvest Corp Bhd is set to acquire that operator of Chef Wan's restaurant and cafe chains for RM30.8m.

Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.210973 4.249411
EUR 4.954495 4.965490
CNY 0.589445 0.590817
HKD 0.536642 0.541158
SGD 3.306006 3.333319