Opening Daily Highlight
Mixed
All eyes on US-China trade talk
Tue, 10-Jun-2025 07:34 am
by Research Team • Apex Research

Malaysia Market Review: FBM KLCI (+0.2%) closed higher yesterday, driven by positive spillover from Wall Street. Similarly, most of the lower liners ended higher as trading activities flourished. The technology sector (+1.6%) led the gainers among the sectors, while the plantation sector, utilities and construction sector were the only three sectors ended in red as profit taking emerged.

 

Global Markets Review:  Wall street ended mixed as investors move to the sidelines ahead of the anticipated U.S.–China discussions in hopes of progress toward a trade deal. European markets pared earlier gains as market participants grew increasingly cautious, bracing for the outcome of the trade talks. On the other hand, the Asia stock markets edged higher buoyed by growing optimism over easing trade tensions.

 

Market Outlook: We expect the local market to trade sideways in the near term as investors await fresh catalysts to drive sentiment. That said, we remain optimistic on the resumption of trade talks between the U.S. and China, which could potentially yield a positive outcome and bolster growth prospects in the world’s two largest economies. This renewed dialogue has already lifted market sentiment globally, with gains seen across Asian equities and commodities. the outcome of the U.S.–China discussions will be watched closely for any indications of easing tensions or policy breakthroughs, which may set the tone for broader risk appetite moving forward. On the economic front, investors will be closely monitoring the latest UK unemployment figures as signs of a softening labour market and cooling wage growth may influence expectations on monetary policy direction. Meanwhile, the outcome of the U.S.–China discussions will be watched closely for any indications of easing tensions or policy breakthroughs, which may set the tone for broader risk appetite moving forward.

 

Sector focus. The technology sector is likely to extend its momentum, taking cue from the surge in the Nasdaq overnight. Meanwhile, we believe logistics-related counters, particularly freight forwarders, warrant closer attention as they are poised to benefit from any improvement in trade relations between major economies.

 

Technical Commentary: The FBM KLCI extended it recovery trend to form another bullish candle as the key index solidify its positive above the SMA50 yesterday. That said, a potential consolidation may take place given that indicators remain weak as MACD Line lingered below the Signal Line, while the RSI is below 50. Technically, the immediate resistance is located at 1,550, followed by 1,600. Support is envisaged around 1,500.

Company News (source: various)

Yinson Holdings Bhd said on Monday it isn't engaged in discussions with any third parties regarding a buyout exercise, following a report that the group was in exclusive talks with New York-based infrastructure investment firm Stonepeak Partners.

 

Hartanah Kenyalang Bhd, a Sarawak-based construction services firm, closed 9.4% or 1.5 sen lower on its maiden trading day on the ACE Market of Bursa Malaysia on Monday.

 

Frozen seafood producer PT Resources Holdings Bhd said it has set up a coconut processing facility for RM17 million in Fujian province of China.

 

Datuk Joseph Lau, head of the developer behind Desa ParkCity township, has emerged as the second largest shareholder of construction firm Crest Builder Holdings Bhd.

 

The Employees Provident Fund (EPF) bought a 5.02% stake in 99 Speed Mart Retail Holdings Bhd via a direct off-market deal, a bourse filing showed.

 

Chin Well Holdings Bhd is acquiring three parcels of land totalling 12.85ha in Seberang Perai, Penang, for RM48.41 million, to grow its land bank.

 

Plastic packaging firm Scientex Packaging (Ayer Keroh) Bhd’s  net profit for the third quarter fell 28% from a year earlier, partly dragged by weaker export sales due to the ringgit’s appreciation.

 

Sealink International Bhd said on Monday that access to its fire-damaged vessel in Brazil remains restricted due to prevailing site conditions, delaying a full on-site assessment of the damage. 

 

Practice Note 17 (PN17) KNM Group Bhd has proposed that scheme creditors waive interest and penalties amounting to RM182.04 million, which will pare the amount its wholly owned KNM Process Systems Sdn Bhd (KNMPS) owes them by 9.44% to RM1.75 billion from RM1.93 billion.

Sentiment: Neutral
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Market Mover
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EUR 4.954495 4.965490
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