Opening Daily Highlight
Local
Middle East tensions weigh on sentiment
Mon, 16-Jun-2025 07:57 am
by Research Team • Apex Research

Market Review & Outlook Malaysia 

Market Review: The FBM KLCI closed down 0.56%, turning negative amid escalating geopolitical tensions between Israel and Iran. Lower liners also declined, triggered by a surge in global market volatility. The commodity-driven sectors were positive, with Energy (+2.01%) and Plantation (+0.38%) being the only two sectors to close in green, while Technology (-2.32%) led the losses. 

Global Markets Review: Wall Street ended sharply lower on last Friday, experiencing a broad selloff driven primarily by the escalating Israel-Iran conflict with all major bourses falling more than 1.0%. European markets declined as well, with key indices falling about 1.0%, while Asian markets also reacted negatively earlier, reflecting widespread risk aversion amid fears of a broader Middle East conflict. 

Market Outlook: We maintain a cautiously negative stance following last Friday’s decline, amid heightened geopolitical tensions and lingering concerns over global economic growth. The market remains under pressure as investors digest the impact of the Middle East conflict on global risk sentiment and oil prices, which tend to increase volatility. Selling pressure were exacerbated by foreign funds outflow amounting to more than RM200.0m last Friday and we reckon the trend may remain in place. Economic data to watch this week include US jobs reports, the FOMC meeting, and Federal Reserve interest rate decisions. 

Sector focus. Volatility is expected to persist, particularly benefiting the Energy sector, which is supported by surging oil prices linked to Middle East tensions. Conversely, sectors with high oil consumption, such as Transportation and Construction, may face negative impacts.

Technical Commentary: The FBM KLCI has formed a bearish candle to extend its pullback mode following the recent gains. 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)


Axiata Group Bhd has completed the sale of its Myanmar tower operations for a revised US$90 million (RM380.4 million), down from the originally proposed US$150 million.


Dialog Group Bhd has secured a 14-year production-sharing contract (PSC) from Petronas for the Mutiara Cluster Small Field offshore Sabah.


A consortium led by DCAH Holdings and individuals Chiong Kiau and Chiong Hang Leong has acquired a 10% stake in Sabah-based palm oil company Kretam Holdings Bhd for about RM162 million, becoming its second-largest shareholder.


IOI Corp Bhd said former Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar will join its board as a senior independent and non-executive director on June 16, 2025.


UUE Holdings Bhd has secured three new contracts worth RM83.4 million.


Rex Industry Bhd has received a mandatory takeover offer at 10 sen per share from new major shareholder ETA Industries Sdn Bhd, after the latter acquired a 40.59% stake for RM26.81 million, or 10 sen apiece.

Sentiment: Negative
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 4.242627 4.276241
EUR 4.884548 4.889422
CNY 0.591951 0.592547
HKD 0.540519 0.544318
SGD 3.295527 3.318850