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Investors Stay Guarded Ahead of US CPI Release
Fri, 24-Oct-2025 07:54 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI rose 0.3% to 1,608.00 pts on Thursday, lifted by mild bargain hunting in selected index heavyweights. In contrast, lower liners ended mixed. Sector-wise, gains were led by Healthcare (+0.9%), Transportation & Logistics (+0.8%) and Industrial Products (+0.6%), while Construction (-0.6%) and Utilities (-0.4%) were the main laggards.

 

Global Markets Review: Wall Street advanced on Thursday, with the Dow (+0.3%), S&P 500 (+0.6%) and Nasdaq (+0.9%) supported by upbeat corporate earnings and news that US President Donald Trump will meet Chinese President Xi Jinping in South Korea next Thursday, easing concerns over US–China trade tensions. European equities also closed higher as investors evaluated corporate results for signs of resilience in business activity and sentiment. Across Asia, markets ended mixed. Japan’s Nikkei 225 (-1.4%) declined amid renewed trade-related jitters, while China’s Shanghai Composite (+0.2%) and Hong Kong’s Hang Seng (+0.7%) gained ahead of key policy announcements from the ongoing CCP’s Fourth Plenum (Oct 20–23), where leaders are expected to outline the 15th Five-Year Plan and set future economic priorities.

 

Market Outlook. Global risk sentiment remains cautiously constructive, with optimism from resilient corporate earnings and easing US–China trade tensions partly offset by lingering uncertainty over the Federal Reserve’s policy trajectory and the ongoing US government shutdown. Investors are now turning their attention to upcoming US economic data, particularly the delayed September CPI report on Friday, which could offer clearer guidance on the timing of potential Fed rate cuts. Meanwhile, geopolitical risks stemming from US sanctions on Russian oil firms and persistent trade frictions with China continue to weigh on the broader outlook. Against this backdrop, the FBM KLCI is expected to stay supported around the 1,600 level, though overall sentiment is likely to remain cautious as investors turn more selective and adopt a wait-and-see stance.

                                                                                                                                                

Sector focus. We continue to favour domestically driven and policy-supported sectors such as consumer, construction, renewable energy and utilities. We also prefer solar and renewable energy players, underpinned by data centre expansion and the ongoing energy transition, which are expected to remain resilient despite global trade risks.

 

Company News (source: various)

Advancecon Holdings Bhd has secured two contracts worth RM25.14 million from a unit of Sime Darby Property Bhd for earthworks and related works in Bandar Bukit Raja 2, Klang. The contracts, which have a tenure of 20 months, will run from Nov 6, 2025 to July 5, 2027. 

 

Axis Real Estate Investment Trusts’ net property income for 3QFY2025 rose 15.7% to RM80.23 million from RM69.35 million a year earlier, thanks to newly acquired assets and rental growth. 

 

Hengyuan Refining Co Bhd has raised RM234 million in gross proceeds from its rights issue exercise, which was oversubscribed by 122.88%. The exercise, which involved up to 300 million new shares together with up to 150 million free detachable warrants, received valid acceptances and excess applications for a total of 368.64 million rights shares at its close. 

 

The auditor of Khee San Bhd has issued a qualified opinion with material uncertainty related to the candy maker’s ability to continue as a going concern in its audited financial statements for the financial year ended June 30, 2025 (FY2025), following a delay in the implementation of its Practice Note 17 (PN17) regularisation plan. 

 

MAA Group Bhd, a major shareholder in KNM Group Bhd, has been warned by Bursa Malaysia Securities not to hold a vote on selling KNM’s stake in German unit Deutsche KNM GmbH (DKNM) without following listing rules. 

 

The takeover offer by Magna Prima Bhd’s largest shareholders — Datuk Seri Wong Sze Chien and managing director Seah Ley Hong — for the remaining shares in the company they don’t own has turned unconditional, after their collective stake climbed above 50%. 

 

Metro Healthcare Bhd is diversifying beyond its obstetrics and gynaecology base with the proposed acquisition of RMC Specialist Sdn Bhd, a company owned by its executive vice-chairman and major shareholder, Dr Tay Swi Peng @ Tee Swi Peng, for RM320,000, paving the way for the group’s entry into the multi-disciplinary hospital segment

 

Mudajaya Group Bhd has secured properties it was promised as payments for completed construction work on a mixed-use development project on Jalan Sultan Ismail, Kuala Lumpur. 

 

Perak Transit Bhd’s managing director and largest shareholder, Datuk Seri Cheong Kong Fitt, was actively trading the company's shares this week as its stock tumbled to multi-year lows. 

 

Steel Hawk Bhd has secured eight subcontracts worth RM61 million combined for a low-voltage power cable system. 

 

Sunway Bhd has secured a term loan facility of up to S$600 million (about RM1.95 billion) to fund its acquisition of Hongkong Land (MCL) Holdings Ltd. 

 

Velesto Energy Bhd has signed an agreement with Australian offshore services firm Icon Engineering Pty Ltd to deliver rig-installed wellhead platforms for shallow-water and marginal fields in Malaysia. 

 

ViTrox Corp Bhd posted a 54.63% jump in net profit for the three months ended Sept 30, 2025 (3QFY2025) to RM34.72 million from RM22.45 million a year earlier, fuelled by strong demand. 

 

Zen Tech International Bhd said it has been sued by a shareholder of its former associate, Galactic Maritime (M) Sdn Bhd, over a shareholding dispute.

Sentiment: Positive
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