Opening Daily Highlight
Local
Bargain-hunting opportunities emerging
Thu, 05-Jun-2025 06:53 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: FBM KLCI closed marginally higher at 1,507.97 (+0.3%), driven by bargain-hunting in energy and telecom sectors towards closing yesterday. Sector-wise, 6 out of 13 sectors showed slight rises, with Telco & Media and Construction gaining 1.1% each. Utilities rose 0.7%, and Energy edged up 0.5%. The biggest declining sectors were Property, with a 0.7% decline, and Transport, down 0.4%.

 

Global Markets Review:  Wall Street closed mixed on Wednesday, with the Dow falling 0.2%, the S&P 500 rising nearly 0.01%, and the Nasdaq gaining 0.3%. This followed a weak US private sector jobs report, which raised economic concerns. The European STOXX 600 edged up 0.5% on positive trade talks. Asian markets generally gained, mirroring a tech rally on Wall Street led by Nvidia. South Korea's Kospi surged 2.66% on presidential election results, reform pledges and aggressive fiscal stimulus, all boosting investor confidence. Japan's Nikkei 225 climbed 0.8%, ending a three-day losing streak. The rebound was fuelled by a weakening yen and trade deal hopes. Hong Kong's Hang Seng and China's CSI 300 saw modest gains with 0.6% and 0.4% up respectively, despite US President Trump's comments on difficult trade negotiations.

 

Market Outlook: We expect the FBM KLCI to remain volatile and range-bound in the near term. Green shoots of recovery are emerging following the recent pullback, but we caution that recovery will be measured. While positive catalysts from a rebounding global tech sector and potential easing of broader trade tensions offer some support, the key index is likely to defend the 1,500 level. Investors will be closely monitoring the European Central Bank's interest rate decision later today.

 

Sector focus. Amid signs of global markets recovery and more attractive entry prices of tech stocks, we favour tech sectors for bargain-hunting activities. We also remain optimistic about power ancillary sectors and blue-chip stocks, viewing them as additional bargain-hunting opportunities.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a hammer candle to snap a six-day losing streak. Indicators, however, 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)

IOI Properties Group Bhd is acquiring full control of the South Beach development in Singapore from CDL in a RM2.75bn deal.

 

Bintai Kinden Corporation Bhd chairman, Ng Choon Koon, has re-emerged as substantial shareholder. 

 

HE Group Bhd aims to move its listing from the ACE Market to the Main Market of Bursa Malaysia by the 2H2025.

 

Affin Bank Bhd debuts in US dollar bond market by issuing US$300m in notes.

 

Nestcon Bhd delays property diversification but is moving ahead with a RM15.1m office deal.

 

Green Ocean Corp Bhd to reallocate RM20m from cash call, originally meant for glove deviation, to expand its food and beverage (F&B) operations, citing persistent challenges in the glove manufacturing sector.

Sentiment: Positive
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

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