Opening Daily Highlight
Local
Steady Gains in FBM KLCI Amid Global Volatility
Wed, 12-Nov-2025 08:11 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI extended its upward momentum, climbing 0.5% to continue a 3-day rally. Market breath was slightly negative as 553 decliners outpaced 543 advancers. Gains in the Consumer (+0.9%), Telecommunications (+0.7%) and Plantations (+0.7%) sectors were supported by strength in heavyweight counters such as QL Resources Bhd, Axiata Group Bhd and Kuala Lumpur Kepong Bhd, while Property (-0.5%) and Logistics (-0.5%) were the main laggards.

 

Global Markets Review: Wall Street ended mixed after a volatile session on Tuesday, with the Dow climbing 1.2% to notch a fresh record close, while the Nasdaq slipped 0.3% as investors rotated out of technology stocks into sectors trading at lower valuations. Heavyweight tech names including Nvidia, Oracle, and CoreWeave came under pressure amid renewed concerns over stretched AI valuations. Signs of a cooling US labour market also emerged, with ADP data showing private-sector job creation slowing by an average of more than 11,000 per week. In Europe, equities extended their gains, with the STOXX 600 advancing 1.3% as all major bourses finished in the green. Meanwhile, profit-taking in Asia dragged key indices such as Shenzhen Component Index (-1.0%), SET (-0.4%), and Nikkei 225 (-0.1%) lower, weighed down by weakness in technology counters.

 

Market Outlook. We expect the FBM KLCI to trade with a constructive bias, supported by rotation flows from small- and mid-cap profit taking into large-cap counters, which serve as relative safe havens amid a volatile market. Optimism from Wall Street also prevailed on hopes that the US government shutdown could soon end, after the Senate passed a funding measure on Monday evening, advancing it to the House for a potential vote as early as Wednesday. Investors will be watching the final batch of US corporate earnings, while domestically, attention turns to the upcoming 3Q GDP release on Friday and the start of the local earnings season for cues on tariff impacts.

 

Sector focus. We continue to hold a positive view on selective construction, power ancillary, and renewable energy stocks, underpinned by data centre growth and the ongoing shift toward cleaner energy. Additionally, we prefer select consumer names, especially within the staples segment, supported by stable domestic consumption and strong earnings visibility.

 

Technical Commentary: The FBM KLCI failed to hold on to most of its early gains to end the day in an inverted hammer formation. Indicators remained positive, with the MACD Line trading above the Signal Line, while the RSI stays above 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.

 

Company News (source: various)

Hartalega Holdings Bhd saw its net profit more than doubled in the recently ended quarter, thanks to cost control that drove unit cost down and hedging gains.

 

Ge-Shen Corp Bhd reported a 70% rise in its third quarter net profit, lifted by 40%-owned electronics manufacturing services company Local Assembly Sdn Bhd’s performance, cost control, and data-driven production improvements.

 

Tex Cycle Technology (M) Bhd reported a 6% decline in its third quarter net profit due to higher resource allocation for its waste treatment operations, even as revenue surged from its newly acquired subsidiary.

 

Property developer LBS Bina Group Bhd is selling two vacant land parcels in Johor Bahru for RM110 million to reallocate funds to its Klang Valley projects. 

 

Kerjaya Prospek Group Bhd has secured two related-party construction contracts worth a total of RM197.7 million.

 

Amanahraya Real Estate Investment Trust plans to establish a RM2 billion medium-term note programme to raise capital for refinancing and funds for working capital and capital expenditure.

 

Cape EMS Bhd has secured financing for its expansion plans, which includes battery storage assembly, from Malayan Banking Bhd, under the lender's Johor–Singapore Economic Zone (JSSEZ) initiative.

 

CIMB Islamic Bank Bhd sold a 2.96% stake in Vantris Energy Bhd, last Thursday (Nov 6), reducing both CIMB Group Holdings Bhd and Khazanah Nasional Bhd’s indirect stakes to 9.139%.

 

Bursa Malaysia Securities Bhd has reprimanded Solar District Cooling Group Bhd for breaching the ACE Market listing requirements on public shareholding spread at the time of its listing, falling short of the 25% threshold.

 

Coastal Contracts Bhd and its client have mutually terminated its liftboat charter contract worth RM12.8 million as the vessel failed to meet technical requirements during a pre-deployment inspection.

Sentiment: Neutral
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