Opening Daily Highlight
Mixed
Middle East Escalating Tension May Weigh
Mon, 23-Jun-2025 06:11 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: FBM KLCI ended the week up 0.1% at 1,502.74, supported by bargain hunting after a recent sell-off, but overall market sentiment remained fragile amid ongoing geopolitical tensions and a hawkish tone from the US Federal Reserve. Sector-wise, the financial services sector (+0.8%) took the lead, while the industrial (-1.2%) was the biggest drag.

 

Global Markets Review: US stocks closed mixed on last Friday, with the Dow rising 0.1%, the S&P 500 slipping 0.2%, and the Nasdaq shed 0.5%. Markets digested Fed Governor Waller’s hint at possible rate cuts by July and President Trump’s delay on a Middle East decision, which added uncertainty but opened room for diplomacy. STOXX 600 closed up 0.1%, though markets still recorded a second week of losses due to ongoing geopolitical concerns. Asian markets finished mostly higher on Friday as easing concerns over an imminent US strike on Iran lifted investor sentiment. South Korea’s KOSPI climbed 1.1% following the announcement of new stimulus measures, while Hong Kong’s Hang Seng gained 1.2% on improved regional risk appetite. Japan’s Nikkei ended flat as investors weighed stronger-than-expected inflation data and the prospect of future interest rate hikes by the Bank of Japan.

 

Market Outlook: The local market is expected to stay in consolidation mode as investors digest ongoing global market uncertainties. Sentiment remains fragile, weighed down by escalating geopolitical tensions and persistent outflows of foreign funds. Cautiousness prevails as the key index may attempt to defend the 1,500 psychological level. Economic wise, investors should monitor upcoming batch of US economic indicators, including PMI data, remarks from Fed Chair Powell, GDP figures, and the PCE price index, for further guidance on market direction later this week.

 

Sector focus. We advise investors to exercise caution and maintain a defensive stance, focusing on the REIT, banking, and utilities sectors amid ongoing market volatility. Also, the energy sector may attract renewed buying interest, supported by higher oil prices as geopolitical tensions and conflict in the Middle East escalates and raise concerns over potential supply disruptions.

 

FBMKLCI Technical Outlook

 

Technical Commentary: The FBM KLCI formed an inverted hammer candle after briefly re-tested the 1,500 level. Indicators remained negative as MACD Line hovered below the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,530, followed by 1,550. Support is envisaged around 1,480.

 

Company News (source: various)

SD Guthrie Bhd and its sister company Sime Darby Property Bhd have entered into an agreement to jointly develop up to 2,000 acres of land on Carey Island, Selangor. This development, to be formalised via a SPV, aligns with the Selangor state government’s vision to transform the island into an industrial and logistics hub while co-existing with existing palm oil operations and complementing activities at Westport and Northport.

 

Wasco Bhd plans to list its biomass and steam energy unit, Wasco Greenergy Bhd, on Bursa Malaysia. The IPO involves 150m shares (75m new, 75m for sale), representing 30% of its enlarged share capital.

 

Poh Huat Resources Holdings Bhd saw a 92.05% yoy drop in 2QFY25 net profit to RM575,000, hit by weaker US demand, tariffs, and higher costs. Revenue fell 9.2% to RM98.3m.

 

Gadang Holdings Bhd secured a RM92.5m contract via Gadang Engineering to carry out earthworks for the KL-Karak Highway widening project, covering KM19.2 to KM61.5.

 

Ecobuilt Holdings Bhd CEO Lim Chin Yen resigned after 4.5 months and is replaced by Fong Tuck Yong, who has over 30 years of construction experience.

 

Maxim Global Bhd is appealing a court stay order halting its high-rise residential project of five 30-storey blocks, originally approved in 2017.

 

Vanzo Holdings Bhd is entering Taiwan’s FMCG market by appointing Xishangxi International Marketing Co Ltd as exclusive distributor. Products will launch in 500 Watsons outlets by September 2025.

Sentiment: Negative
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