Market Review & Outlook
Malaysia Market Review: FBM KLCI slipped marginally by 0.03%, paring back some of its earlier gains as investors turned cautious amid lingering global trade uncertainties. In contrast, lower liners were mostly positive, with selective buying interest persisted in small cap technology stocks as well as renewable and green energy-related counters. On the broader front, most sectors ended in a positive territory, with the technology sector (+1.9%) leading the pack.
Global Markets Review: Wall Street closed lower on Friday as investor sentiment was dampened by resurfacing trade tensions, including a proposed 35% tariff by the US on Canadian imports. European markets also retreated, surrendering part of their recent gains ahead of an anticipated response from the White House on EU tariffs. Meanwhile, Asian equities ended mixed as regional markets grappled with broader concerns over escalating trade uncertainties.
Market Outlook: We expect the FBM KLCI to remain on a downward trend today, weighed by renewed tariff threats and rising US Treasury yields, which have triggered a broader risk-off sentiment. Over the weekend, US President Donald Trump announced 30% tariffs on EU and Mexico, escalating fears of a worsening trade war. Recent signs of foreign fund outflows may continue if global uncertainties persist, particularly in view of a stronger US dollar and tighter financial conditions globally. That said, we advise investors to take the opportunity to accumulate fundamentally strong stocks amid prevailing weakness, supported by the government’s ongoing efforts to stabilise the domestic market. On the economic front, attention will turn to retail sales and inflation data from major economies, which may provide further cues for regional market direction.
Sector focus. We advocate investors to rotate into defensive sectors such as REITs and hospital operators, which tend to offer earnings resilience during periods of macroeconomic uncertainty. In addition, buying interest may emerge in gold-related stocks as investors shift towards safe-haven assets following Trump’s move to further escalate the global trade war with the announcement of new tariffs.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI extended its slide to tip below the SMA50 on last Friday. Indicators, however remained positive with the MACD Line hovered above the Signal Line, while the RSI floats above 50. Immediate resistance is located at 1,560, followed by 1,580. Support is envisaged around 1,500.
Company News (source: various)
Malaysian Resources Corp Bhd has firmed up the partnership to jointly develop Ipoh Sentral, a transit-oriented development project in the Perak capital with a gross development value of RM6.25 billion.
Econpile Holdings Bhd has secured a RM98.2 million contract to undertake boring piling works for a proposed industrial development in Kapar, Klang.
A1 AK Koh Group Bhd, a newly-listed premixed soup maker, plans to launch a slew of new products this year and expand further abroad to sustain demand.
Hektar Real Estate Investment Trust said it has entered into a deal to buy two parcels of leasehold land in Melaka, totalling 41.8 acres, for RM40 million.
Meta Bright Group Bhd said it is divesting its Australian machinery leasing unit, Meta Bright Australia Pty Ltd, for RM25.37 million.
BTM Resources Bhd has scrapped its 7MW renewable energy power plant project, citing difficulties in securing financing and rising project costs.
Power tool and industrial equipment maker Jasa Kita Bhd said its two largest shareholders, executive chairman Tan Sri Robert Tan Hua Choon and son, executive director Datuk Seri Tan Han Chuan, have received a conditional buyout offer at 38 sen per share, valuing their entire stake in the company at RM68.89 million.
Greatech Tech Bhd said GTech Holdings Sdn Bhd has transferred its 57.65% stake in the automated machinery group to GTech's two shareholders.
SkyGate Solutions Bhd said it is raising its stake in SkyGate Integration Sdn Bhd (formerly Leader Range Technology Sdn Bhd) to 95% by acquiring another 44% stake for RM9.8 million via a share issuance deal.
Disclaimer
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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.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.235841 | 4.269471 |
EUR | 4.969005 | 4.974129 |
CNY | 0.592897 | 0.593485 |
HKD | 0.539796 | 0.543571 |
SGD | 3.308321 | 3.331662 |