Opening Daily Highlight
Mixed
Mixed sentiment
Fri, 13-Jun-2025 07:40 am
by Research Team • Apex Research

Malaysia Market Review: FBM KLCI (+0.2%) extended its gains lifted buying support in selected blue-chips heavyweights yesterday. The lower liners were mixed, while the Utilities sector (+0.4%) outperformed as investors adopted a more defensive stance amid lingering uncertainties in global trade developments.

 

Global Markets Review: Wall street advanced supported by a cooler-than-expected May PPI reading, which lifted major indices on optimism over easing inflationary pressures. In Europe, major indices fell as investor sentiment was dragged by President Trump's announcement that he would unilaterally set new tariff rates in the coming weeks, ahead of his self-imposed 90-days deadline. Meanwhile, Asia-Pacific markets ended mixed, as the conclusion of U.S.-China trade talks failed to meaningfully boost risk appetite.

 

Market Outlook: Despite the rebound in the FBM KLCI, we anticipate that profit-taking activities may emerge as the key index approaches the 1,530 resistance level. We maintain a cautious stance, as upward momentum could remain limited without the presence of fresh catalysts.Any surprise to the downside could reinforce concerns over global growth, potentially dampening trading sentiment. Meanwhile, trading interest in the lower liners are also likely to stay subdued amid weak market breadth. Economic wise, investors will be closely monitoring on Malaysia’s retail sales as well as US Michigan Consumer Sentiment data.

 

Sector focus. We continue to favour the oil & gas stocks, riding on the recovery of Brent price in light of tightening global supply conditions and a more optimistic demand outlook from China. Meanwhile, the consumer sectors may face headwinds, stemming from the broader scope of the expanded SST, which could lead to higher end-user costs and subdued consumer sentiment.

 

Technical Commentary: The FBM KLCI edged higher overnight after a choppy trading session only to close at the EMA20 level. Indicators remained negative as MACD Line hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,550, followed by 1,600. Support is envisaged around 1,500.

Company News (source: various)

Bermaz Auto Bhd warned of tough times ahead after its 4QFY2025 net profit plunged 76.5% year-on-year to RM21.2 million from RM90.2 million — its weakest quarterly earnings since 2QFY2022 — as revenue fell 43.6% to RM528.65 million.

 

Berjaya Land Bhd is divesting its entire 80% stake in a company undertaking a mixed-use development in Hanoi, Vietnam for 1.239 trillion dong (RM201.96 million) in cash.

 

Cash-strapped property developer Country Heights Holdings Bhd plans to sell a South Africa-based firm for RM600,000 as part of efforts to streamline operations, focus on core areas, and unlock non-core asset value.

 

UEM Edgenta Bhd has formed a joint venture in Dubai with Expo City Dubai's unit to manage large-scale real estate projects, marking its strategic entry into the region.

 

Construction outfit GDB Holdings Bhd announced that its non-executive chairman Tan Sri Zaini Omar has resigned due to health reasons and is succeeded by Datuk Chia Lui Meng, formerly an independent non-executive director, effective June 12.

 

Plastic packaging product maker Thong Guan Industries Bhd has cancelled plans to sell its food and beverage (F&B) business to major shareholder Foremost Equals Sdn Bhd after failing to agree on a final price, which exceeded the initial RM60 million offer.

Sentiment: Neutral
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