Opening Daily Highlight
Mixed
Fed Delivers 25-bp Cut, Easing Cycle Begins
Thu, 18-Sep-2025 08:39 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI extended its upward momentum, climbing 0.7% to close above the 1,610-resistance level. Optimism was broad-based, with small caps also advancing in tandem ahead of the Federal Reserve’s rate cut. Gains in the Consumer (+1.7%), Industrial Products (+1.4%) and Energy (+1.1%) sectors were supported by strength in heavyweight counters such as Petronas Dagangan, Sime Darby and PPB Group. Meanwhile, foreign investors remained net buyers for the third consecutive session, underscoring improving sentiment.

 

Global Markets Review: It was a mixed bag in Wall Street after a volatile day of trading, with the Dow gaining 0.6%, the S&P 500 slipping 0.1% and the Nasdaq closing down 0.3%. Leading tech names such as Nvidia, Oracle and Palantir bore the brunt of the selloff after the Fed’s decision, with investors locking in gains on recent market leaders. In Europe, the STOXX 600 closed flat as investors stayed cautious ahead of Bank of England’s rate decision on Thursday. In Asia, most major indices closed in negative territory with the Nikkei 225 dropping 0.3%, KOSPI registering a 1.1% decline and the ASX down 0.6%.

 

Market Outlook. Following the Federal Reserve’s quarter-point rate cut, investor sentiment is likely to improve as equities benefit from the lower financing rate. The Fed’s dot plot points to another 50 bps of cuts by year-end, even as it noted that economic activity has moderated, job gains have slowed, and inflation remains somewhat elevated. Domestically, we expect the local bourse to rally as Fed easing supports foreign fund inflows, enhancing the relative attractiveness of Malaysian equities. These inflows should also underpin ringgit strength, aided by narrowing yield differentials and firmer regional risk sentiment. Meanwhile, the United Nations General Assembly overwhelmingly voted to endorse a declaration towards a two-state solution between Israel and Palestine, with heightened tensions likely to increase geopolitical risk premium in the region.

Sector focus. On the back of the Fed’s rate cut path, we see continued interest in high-yielding sectors such as Utilities, Telecommunications, and REITs. We remain constructive on Utilities and Renewable Energy, supported by ongoing reforms and policy measures that are expected to drive sustained growth in the power segment.

Technical Commentary: The FBM KLCI formed another bullish marubozu candle in yesterday’s trading session, closing above the previous resistance level of 1,610. Indicators remained mix, with the MACD Line ending the day below the Signal Line, while the RSI floated above 50. The next resistance is located at 1,630. Support is envisaged at around 1,570.

Company News (source: various)

Advancecon Holdings Bhd’s unit has won a RM66.9 million contract from JLG Technopark to carry out earthworks and related tasks for phase one of Southern Ibrahim Technopolis (IBTEC) in Kulai, Johor.

 

Plastic pipes and fittings manufacturer Resintech Bhd has secured a contract worth US$3.93 million (RM16.5 million) from Phnom Penh Water Supply Authority in Cambodia for the supply of high-density polyethylene (HDPE) pipes and fittings.

 

Former TH Plantations Bhd chief executive officer Mohamed Zainurin Mohamed Zain has filed a complaint of unfair dismissal with the Industrial Relations Department (IRD) against the plantation group under Lembaga Tabung Haji.

 

Genting Malaysia Bhd said on Wednesday that its business partner RAV Bahamas Ltd has filed an amended complaint in a US court in Florida.

 

Property developer Asian Pac Holdings Bhd has proposed to dispose of a 35.72-hectare freehold land in Semenyih, Selangor for RM87.69 million cash.

 

MKH Bhd has proposed to dispose of its furniture manufacturing subsidiary in China to focus on its property and plantation business.

 

Rex Industry Bhd is selling its entire Malaysian food and beverage operations for RM40 million in cash, as the canned food and drinks maker shifts focus to its more profitable Indonesian subsidiary.

 

HCK Capital Group Bhd said it had entered into a joint-venture deal with a landowner to undertake a property development in Cheras with an estimated gross development value of RM600 million.

 

Greenyield Bhd has rejected a request by a group of shareholders to convene an extraordinary general meeting (EGM) to remove the company's chief executive officer Tham Kin-On from his position.

 

Scientex Bhd said on Wednesday it is eyeing a stronger pipeline of property launches in 2026, despite reporting a 2.7% decline in net profit for the financial year ended July 31, 2025 (FY2025).

Sentiment: Positive
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