Opening Daily Highlight
Mixed
Trade Frictions Weigh on Sentiment
Wed, 15-Oct-2025 07:57 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (-0.23%) extended its decline on Tuesday, closing at 1,611.46 pts, reflecting a cautious regional tone as investors reassessed the durability of recent trade optimism. Market breadth weakened, with 401 gainers against 801 losers, while lower liners also ended broadly negative. Across sectors, Consumer (+1.17%) led the gainers, whereas Technology (-2.30%) were the main laggards.

 

Global Markets Review: Wall Street ended mixed on Tuesday as investors weighed upbeat global growth signals from the IMF and Fed Chair Jerome Powell against renewed US–China trade tensions. Sentiment turned cautious after China imposed sanctions on US subsidiaries of South Korea’s Hanwha Ocean, barring them from conducting business in China in retaliation for Washington’s move to raise port fees on Chinese vessels, further escalating trade frictions. Brent crude eased as investors grew wary over global demand prospects, offsetting earlier optimism from signs of easing trade tensions. In Europe, major indices closed mixed, with the STOXX 600 down 0.50%, the DAX falling 0.62%, while the FTSE 100 edged up 0.10%. Losses were led by cyclical sectors, while Michelin weighed on sentiment after cutting its earnings outlook. Across Asia, markets traded broadly lower earlier in the day, reflecting investor caution over earnings visibility and escalating trade tensions.

 

Market Outlook. We expect the FBM KLCI to trade cautiously today amid escalating US–China trade tensions. China’s move to impose retaliatory port fees on US vessels, following Washington’s tariff hike on Chinese shipping, has intensified trade frictions and dampened sentiment. Meanwhile, the ringgit extended its weakness against the US dollar as investors rotated into safe-haven currencies. Against this backdrop, any relief from geopolitical de-escalation or positive corporate earnings surprises could trigger a technical rebound. However, with structural trade risks and policy uncertainty still looming, market volatility is likely to persist in the near term.

                                                                                                                                  

Sector focus. We remain positive on selected Power Ancillary and Renewable Energy names, underpinned by accelerating data centre investments and supportive policy initiatives driving growth in the power segment.

 

FBMKLCI Technical Outlook

Technical Commentary: 

The FBM KLCI closed lower on Tuesday, forming a shooting star candlestick, indicating potential bearish sentiment. Indicators were mixed, with the MACD Line trading below 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)

Southern Cable Group Bhd plans to raise up to RM259.2 million via a 10% share placement to fund expansion and working capital.

 

TSR Capital Bhd secured an RM85 million contract via TSR Bina Sdn Bhd for infrastructure works at Ibrahim Technopolis (IBTEC) township in Kulai, Johor.

 

KTI Landmark Bhd secured a RM70 million contract to build Wisma KEPKAS, the new headquarters for Sabah’s Ministry of Tourism, Culture and Environment.

 

CB Industrial Product Holding Bhd is divesting its entire stake in Admiral Potential Sdn Bhd (APSB) and its Indonesian subsidiary PT Jaya Jadi Utama (PT JJU) to UK-listed Anglo-Eastern Plantations plc (AEP) for RM38.25 million, marking its exit from the plantation business in Indonesia.

 

Mesiniaga Bhd secured a RM17.86 million one-year extension from Royal Malaysian Customs Department (RMCD) for MYGST system maintenance and licence renewal.

 

Infomina Bhd posted a slight rise in 1QFY2026 net profit to RM8.08 million despite higher costs, with revenue up 18.2%.

 

South Malaysia Industries Bhd filed a fresh judicial review to challenge the Securities Commission’s approval of six nominated directors by Target 1 Sdn Bhd, before its takeover offer document for SMI was issued.

 

MAA Group Bhd, the major shareholder of KNM Group Bhd, has urged fellow shareholders to support the RM1.34 billion sale of German unit Deutsche KNM GmbH (DKNM) to NGK Insulators Ltd.

 

Sapura Industrial Bhd is forming a 51:49 joint venture with Singapore-based Funa Micro Technology Pte Ltd to establish a manufacturing facility for lithium battery precision structural components in Malaysia.

Sentiment: Negative
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