Opening Daily Highlight
Global
Market Optimism Builds Ahead of Trump–Xi Meeting
Tue, 28-Oct-2025 07:47 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI rose 0.3% to 1,618.38 pts, lifted by improved sentiment following renewed optimism over US-China trade relations. Sector-wise, gains were led by Plantation (+1.4%), Technology (+1.2%), and Healthcare (+1.2%), while Energy (-1.0%), Consumer (-0.7%), and Utilities (-0.5%) were the main laggards.

 

Global Markets Review: Global equities rallied as optimism over a potential US–China trade breakthrough lifted risk sentiment across regions. The Dow Jones (+0.7%), S&P 500 (+1.2%), and Nasdaq (+1.9%) all closed at record highs, supported by easing trade tensions ahead of the highly anticipated meeting between US President Donald Trump and China’s President Xi Jinping on Thursday. Both nations reportedly reached a preliminary framework for a potential trade deal covering rare-earth export restrictions, US soybean purchases, and the TikTok dispute. In Europe, major indices ended at record highs for a third consecutive session, buoyed by optimism over the trade-framework progress. Asian markets were also firmer on trade optimism. Japan’s Nikkei 225 (+2.5%) led regional gains, while China’s Shanghai Composite (+1.2%) and Hong Kong’s Hang Seng (+1.1%) also rose on renewed hopes of a US–China trade breakthrough.

 

Market Outlook. The FBM KLCI is expected to trade with a moderately bullish bias, supported by improved global risk sentiment and steady buying interest in selected blue-chip counters. Optimism is building ahead of the meeting between US President Donald Trump and China’s President Xi Jinping in South Korea, following reports that both sides have reached a preliminary framework for a potential trade deal. Focus this week will be on the FOMC policy decision (29 Oct), where a 25-bps rate cut is widely anticipated. Meanwhile, mega cap US technology earnings from Meta, Microsoft and Alphabet on 29 October and Apple and Amazon on 30 October are expected to guide sentiment, with AI-related capital expenditure guidance viewed as a key swing factor for near-term risk appetite in Malaysia’s construction, power ancillary and utilities sectors.

 

Sector focus. We expect sentiment to remain constructive in the technology sector, mirroring overnight gains on Wall Street. We also maintain a positive outlook on the renewable energy and utilities sectors, supported by ongoing policy initiatives, improving regulatory clarity, and sustained investment momentum.

 

Company News (source: various)

KNM Group Bhd will proceed with its €270m (RM1.3b) sale of Deutsche KNM GmbH, which it deems critical to stabilising its finances. The group will withdraw its delisting appeal, paving the way for its removal from Bursa Malaysia on Nov 5, 2025, after 22 years as a listed entity.

 

Tenaga Nasional Bhd said the Inland Revenue Board (IRB) has filed an appeal at the Court of Appeal against a High Court ruling that set aside RM78.5m in additional tax assessments on its unit Southern Power Generation (SPG). The High Court earlier ruled the IRB had no legal basis to issue the assessments for 2017-2021.

 

Mulpha International Bhd sold its 33% stake in the London Marriott Hotel for £33.8m (RM190.3m), expecting a net gain of £18.7m (RM105.3m). Proceeds will fund working capital and new investments.

 

DXN Holdings Bhd plans to establish a coffee-processing facility in Minas Gerais, Brazil, as part of its expansion in Latin America, which contributes about 60% (c.RM1b) of FY2025 revenue.

 

MGB Bhd secured a RM118.5m contract from UDA Accord Development to construct affordable apartments in Kuala Lumpur. The 30-month project starts Nov 13, 2025, and is due for completion by May 12, 2028.

 

AWC Bhd won an RM82.5m contract from the Public Works Department (JKR) to provide facilities management and maintenance services for government buildings over five years (Jan 2026-Dec 2030).

 

OCK Group Bhd upsized its sukuk murabahah programme by 43% to RM1bn, extending its tenure to 30 years to fund 5G and solar projects as well as refinancing.

 

Bina Darulaman Bhd appointed Che Abdul Khalid Md Din as its new Group CEO, effective Nov 1, succeeding YM Raja Shahreen Raja Othman whose term ends this month.

 

Systech Bhd’s former largest shareholder Datuk Hooi Jia Hao ceased to be a substantial shareholder after reducing his stake by 4.0% to 3.5%.

 

Kawan Renergy Bhd saw the emergence of Urusharta Jamaah Sdn Bhd (MOF Inc SPV) as a substantial shareholder, raising its stake to 5.0% following an additional purchase of 0.1% equity interest.

Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.194499 4.227846
EUR 4.898143 4.903056
CNY 0.592364 0.592951
HKD 0.540235 0.544017
SGD 3.236600 3.259420