Opening Daily Highlight
Mixed
Slew of Diplomatic Wins
Mon, 27-Oct-2025 07:59 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI rose 0.3% to 1,613.27 pts on Friday, supported by continued buying interest in selected blue-chip stocks and positive regional sentiment ahead of the upcoming US-China meeting. Lower liners also closed positive. Sector-wise, gains were led by Technology (+1.4%), Energy (+0.7%), and Property (+0.5%), while Telecommunications & Media (-0.3%) and Healthcare (-0.2%) were the main laggards.

 

Global Markets Review: Wall Street extended its rally on Friday, buoyed by strong corporate earnings and a softer-than-expected US inflation reading, which reinforced expectations of an imminent Federal Reserve rate cut. The Dow Jones (+1.0%), S&P 500 (+0.8%), and Nasdaq (+1.2%) all advanced ahead of next week’s anticipated meeting between US President Donald Trump and Chinese President Xi Jinping, which investors hope will ease trade tensions. In Europe, major indices also closed higher, supported by upbeat earnings from industrial and consumer-focused firms. Across Asia, markets were broadly firmer, with Japan’s Nikkei 225 (+1.4%) lifted by yen weakness and solid earnings, while China’s Shanghai Composite (+0.7%) and Hong Kong’s Hang Seng (+0.7%) gained on optimism over potential policy easing and fiscal support.

 

Market Outlook. We expect the FBM KLCI to open on a positive note, supported by upbeat regional sentiment following recent diplomatic and trade developments in Kuala Lumpur. The newly signed US-Malaysia Reciprocal Trade Agreement (RTA) is expected to enhance export competitiveness and attract renewed foreign inflows. Trading is likely to remain range-bound near 1,600–1,640 points, with focus on the upcoming FOMC meeting (28–29 Oct), where a 25 bps rate cut is widely anticipated. Other key events to watch this week include the ASEAN Summit (26–28 Oct) in Kuala Lumpur, mega-cap US tech earnings, and the Trump–Xi meeting (30 Oct) at the APEC Summit in South Korea, all of which could influence near-term market sentiment and global risk appetite.

 

Sector focus. We believe sentiment will remain constructive across export-oriented sectors, supported by Malaysia’s stronger trade positioning under the newly signed US-Malaysia RTA and its role as ASEAN Chair for 2025. We also favour renewable energy and utilities, which continue to benefit from sustained domestic policy support.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI rebounded from its key support zone, closing the session above the 50-day moving average. Indicators turned mixed, with the MACD Line trading below the Signal Line, while the RSI stayed above 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.

Company News (source: various)

Sime Darby Property Bhd awarded a RM1.3b contract to IJM Corp Bhd for the main building works of a hyperscale data centre at Elmina Business Park, Selangor, with completion targeted for 2Q2027.

 

Gamuda Land, the property arm of Gamuda Bhd, acquired a site in Stratford, London, for a purpose-built student accommodation project with an estimated GDV of RM600m.

 

Bank Islam Malaysia Bhd CEO Datuk Mohd Muazzam Mohamed resigned after seven years at the helm, effective Dec 13. Mizan Masram, Group Chief Business Officer (Retail), will assume the role of officer-in-charge.

 

Microlink Solutions Bhd filed a US$9.39m (RM38.7m) lawsuit against former CEO Chia Yong Wei over alleged breaches of fiduciary duties and fraud, citing financial loss and harm to the group.

 

Tan Chong Motor Holdings Bhd is suing Epicon Bhd and former subsidiaries to recover RM26.2m in overdue settlement payments related to vehicle rental and maintenance charges.

 

Jasa Kita Bhd announced that Tan Sri Robert Tan Hua Choon and his two children will step down from executive roles, effective Oct 25.

 

Eco-Shop Marketing Bhd posted a 48% YoY rise in 1QFY2026 net profit to RM58.8m, supported by lower costs and sales growth. An interim dividend of 0.5 sen per share was declared, payable on Nov 26.

 

I-Bhd reported an 81% YoY jump in 3QFY2025 net profit to RM23.5m, driven by stronger property and investment contributions and cost efficiency.

 

Lianson Fleet Group Bhd proposed a bonus issue of warrants (1-for-10), potentially raising up to RM271.9m for working capital if fully exercised.

 

Ta Win Holdings Bhd proposed a RM190m capital reduction to offset accumulated losses of RM179.7m at the group level.

 

Ho Hup Construction Co Bhd’s founding Low family ceased to be substantial shareholders, disposing of their entire 4.42% stake amid an ongoing boardroom tussle.

 

Sentiment: Positive
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