Opening Daily Highlight
Mixed
Tariff Fears Ease After Trump’s Reassurance
Mon, 13-Oct-2025 08:35 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (-0.46%) edged lower on Friday, tracking the weaker performance across regional markets. Market breadth turned negative with 444 gainers versus 586 losers, while lower liners ended higher. Sector-wise, Energy (+0.51%) led the gains, whereas Technology (-1.24%) was the main laggard.

 

Global Markets Review: Wall Street sold off sharply on Friday after President Trump hinted at cancelling his meeting with China’s president and threatened a “massive increase in tariffs” on Chinese goods, rekindling trade tensions and triggering broad risk aversion ahead of the earnings season. The S&P 500 (-2.7%), Nasdaq (-3.6%), and Dow Jones (-1.9%) all closing lower. Meanwhile, Brent crude oil slid 5% as Israeli forces began withdrawing from Gaza, easing geopolitical risk premiums, while gold retreated on softer safe-haven demand. In Europe, the STOXX 600 (-0.86%) weakened as renewed US–China trade fears and lacklustre PMI data dragged banking, industrial, and technology names lower. Auto stocks extended losses, though energy counters offered modest support amid bargain-hunting. Meanwhile, Asian markets were generally lower, reflecting regional caution following Wall Street’s downturn but could see near-term relief following Trump’s conciliatory remarks.

 

Market Outlook. The FBM KLCI is expected to trade within a tight range as investors digest the implications of Budget 2026. Globally, Trump’s softer remarks over the weekend may temporarily ease fears of an imminent trade breakdown, though volatility is likely to persist until greater policy clarity emerges. Renewed tariff threats could still weigh on export-linked and commodity counters, particularly in the energy, resources, and metals segments. Meanwhile, the upcoming US 3Q earnings season will be closely watched to gauge corporate margin resilience amid trade uncertainty, with Fed Chair Powell’s speech on Wednesday likely to set the tone for near-term market sentiment.

 

Sector focus. We expect near-term weakness in technology and industrial names amid renewed US–China tariff tensions, while rotational interest may persist in construction, consumer, and renewable energy counters, supported by post-Budget policy momentum.

 

FBMKLCI Technical Outlook

Technical Commentary: 

The FBM KLCI closed lower on Friday, forming a bearish candle that signalled waning buying momentum after recent gains. Indicators remained positive, with the MACD Line trading above the Signal Line, while the RSI floated above 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.

 

Company News (source: various)

Engineering firm Kelington Group Bhd has signed an agreement to develop a two-megawatt green hydrogen production hub in Selangor.

 

Automotive parts distributor MSB Global Group Bhd has signed a 10-year exclusive distributorship agreement with China-based Zhejiang GOLD Intelligent Suspension Corp.

 

Magma Group Bhd and KLCC Holdings Sdn Bhd are selling the 519-room Impiana KLCC hotel for RM315 million to Harum Aspirasi, mostly owned by the Valiram family, which runs a luxury retail group.

 

UOA Development Bhd said its property investment unit, Distinctive Acres Sdn Bhd, received a notice on Friday for an additional tax assessment and penalty of RM165.66 million.

Sentiment: Negative
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Market Mover
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USD 4.212398 4.245900
EUR 4.900605 4.905568
CNY 0.591953 0.592544
HKD 0.541967 0.545762
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