Opening Daily Highlight
Mixed
US Jobs Surprise Fuels Market Optimism
Mon, 09-Jun-2025 07:26 am
by Research Team • Apex Research

Malaysia Market Review: FBM KLCI (-0.1%) faltered into the negative territory in the final trading session yesterday with more than half of the key index components closed in red. Similarly, most of the lower liners rally also took a breather as profit taking set into place. Meanwhile, the energy sector (+1.4%) outperformed, tracking gains in oil prices amid optimism over the resumed trade talks between Xi and Trump.

 

Global Markets Review:  Wall Street closed higher led by gains in the technology sector and a stronger-than-expected nonfarm payrolls report. European markets also advanced, buoyed by an upward revision to the eurozone’s 1Q25 GDP, which was raised from 0.3% to 0.6% qoq. The Asia stock markets were mixed as investors adopted a cautious stance while awaiting further clarity following the recent phone conversation between Xi and Trump.

 

Market Outlook: We expect the local bourse to consolidate above the 1,500 level as market participants remain on the sidelines ahead of the upcoming US-China trade negotiations in London. While the recent call removes some severe downside risks, tensions are expected to remain high, and further escalation remains possible. Similarly, we believe the lower liners will follow a comparable pattern, though bargain hunting may emerge over the near term. Economic wise, investors will be keeping a close tab onto China inflation rate, PPI, exports data, as well as US consumer inflation expectations to gauge potential weaknesses in the global economy.

 

Sector focus. In this volatile market environment, we maintain a preference for blue-chip stocks with strong fundamentals. Trading interest may rotate into oil & gas stocks, supported by Brent crude prices climbing above US$65/bbl. Meanwhile, the technology sector could mirror the positive performance on the Nasdaq overnight, benefiting from renewed investor appetite.

 

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)

New York-based Stonepeak Partners is reportedly in exclusive talks to acquire Yinson Holdings Bhd, potentially valuing the company at RM9 billion (US$2.1 billion), making it one of Malaysia’s biggest deals this year.

 

Pavilion REIT has raised about RM360 million from a private placement of 257.14 million shares at RM1.40 each, a 3.9% discount to the volume-weighted average price of the units for the five market days up to and including June 4 of RM1.4572 per unit.

 

Bank Islam Malaysia Bhd chief financial officer (CFO) Azizan Abd Aziz is leaving the bank to become CFO of Bursa Malaysia Bhd, with the appointment effective August 1.

 

Information and communication technology services group Omesti Bhd has proposed a series of corporate exercises — including debt settlements via share issuances, a RM63.12 million rights issue, a RM45.65 million private placement, and a RM200 million capital reduction — aimed at paring down debt, raising funds, and cutting its accumulated losses from RM286.72 million to RM88.52 million.

 

PIE Industrial Bhd has appointed former Globetronics Technology Bhd CEO Datuk Heng Huck Lee, 68, as an independent and non-executive director, as well as a member of its nomination and audit committees, effective immediately.

 

Tan Sri Mohd Annuar Zaini has been appointed as the new independent and non-executive chairman of 7-Eleven Malaysia Holdings Bhd, effective immediately.

 

Gadang Holdings Bhd will incur about RM19 million in additional costs for FY2025 after terminating a joint development agreement with Cyberview Sdn Bhd to develop land inthe Cyber 9 precinct of Cyberjaya.

 

Ancom Nylex Bhd plans to take full ownership of Nylex (M) Bhd via a selective capital reduction and repayment exercise, offering 5.1 sen per share — or RM5.3 million in total — to minority shareholders. 

 

Bursa Malaysia has reprimanded property developer Meridian Bhd and fined five directors RM350,000 for delaying disclosure that the group had minimal business activity.

 

CIMB Group Bhd said shares of its Thai unit, CIMB Thai Bank, were suspended from trading on the Thai stock exchange on June 5 for failing to meet the minimum 15% public shareholding requirement.

 

Ho Hup Construction Co Bhd, which slipped into Practice Note 17 (PN17) status earlier in April, has defaulted on revolving credit facilities from AmBank Islamic Bhd totalling RM45.3 million.

 

Furniture maker Ecomate Holdings Bhd plans to diversify into ICT solutions by acquiring a 60% stake in computer servicing firm Progressive Computer Systems Sdn Bhd for RM8.4 million.

Sentiment: Neutral
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