Opening Daily Highlight
Mixed
Persistent Risks Remain
Mon, 15-Dec-2025 07:43 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI closed 0.8% higher, supported by continued bargain hunting and improved regional market sentiment. Banking heavyweights such as MAYBANK, CIMB and PBBANK, together with TENAGA, provided the primary lift to the index. Sector performance was broadly positive, led by Utilities (+1.6%) and Industrial (+1.0%), while Construction (-0.1%) was the only sector to end slightly lower.

Global Markets Review: Wall Street closed lower on Friday, dragged by sharp losses in technology stocks. The S&P 500 fell 1.1% and the Nasdaq dropped 1.7%, sliding to near two-week lows, while the Dow Jones eased 0.5%, retreating from a fresh record high. The sell-off followed weaker guidance from Broadcom and Oracle, prompting rotation out of richly valued tech amid uncertainty over the durability of AI-driven spending.In Europe, the Euro STOXX declined 0.5%, easing from a four-week high as risk appetite softened. Asian markets were mixed, with Japan’s Nikkei 225 up 1.4% on improved sentiment and a weaker yen, while China’s Shanghai Composite gained 0.4% on bargain hunting after recent losses.

Market Outlook. We expect the FBM KLCI to trade range-bound with a mild downward bias today, as sentiment is weighed by weakness in US equities, driven mainly by a tech-led sell-off following cautious guidance from major US technology names. That said, downside should be cushioned by defensive and value-oriented sectors, particularly financials, utilities and plantations, underpinned by stable domestic fundamentals. In addition, the recent improvement in market breadth and foreign fund inflows should continue to support the market. On the international front, attention will be on the US Non-Farm Payrolls on 16 December, followed by the release of US inflation data on 18 December and the Bank of Japan’s interest rate decision on 19 December, as these events could shape global risk sentiment and capital flows.

Sector focus. We remain positive on selective power-ancillary and renewable energy names, backed by long-term energy transition trends that support earnings resilience and sustain investor rotation amid global trade uncertainty.

Technical Commentary: The FBM KLCI extended last Friday’s rebound with another bullish candle, reinforcing the continuation of upward momentum above the short-term EMAs. Indicators turned positive, with the MACD line trading above the signal line and the RSI remaining above 50. The next resistance is located at 1,660, while support is envisaged around 1,600.   

Company News (source: various)

XPeng said it is in negotiations with EP Manufacturing Bhd to commence mass EV production in Malaysia from 2026, leveraging EPMB’s existing capacity and planned expansions. Malaysia is expected to serve as a strategic production base for XPeng’s expansion into right-hand-drive ASEAN markets.

Hume Cement Industries Bhd is divesting its entire concrete business to YTL for RM215.0m as part of its strategy to refocus on core cement operations. The disposal is expected to generate a one-off gain of RM185.7m, with completion targeted for 2Q2026, subject to shareholder approval.

Kerjaya Prospek Group Bhd secured a RM225.0m contract for a 50-storey serviced apartment and commercial development in Johor Bahru, lifting its outstanding order book to RM3.6bn and improving earnings visibility.

Econpile Holdings Bhd won a RM66.3m piling and substructure contract for a 46-storey condominium project in Mont Kiara, with works scheduled over an 18-month period from Dec 2025.

AWC Bhd secured a RM42.3m subcontract from Gamuda Engineering for mechanical works at a hyperscale data centre in Puncak Alam, covering two facilities with completion expected between Feb 2027 and Sept 2027.

Berjaya Land Bhd announced that its unit Berjaya Air will commence commercial operations on 14 Feb 2026, launching five new regional routes across Thailand, Vietnam and Indonesia, with potential fleet expansion subject to route demand.

Yinson Holdings Bhd reported a 19.5% YoY increase in net profit to RM239.0m in 3QFY26, supported by lower profit attribution to non-controlling interests, despite revenue declining 7.1% YoY to RM1.7bn. The group declared a 1.0 sen dividend, bringing YTD dividends to 4.0 sen.

Capital A Bhd announced the resignation of long-serving senior executive Aireen Omar, who stepped down from her roles as CEO of BigPay and AirAsia Rewards after more than 20 years with the group.

Mytech Group Bhd received a mandatory takeover offer at 30.0 sen per share from executive chairman Tan Sri Cheng Joo Teik after he raised his stake to 42.5%, with no intention to maintain the company’s Main Market listing.

EWI Capital Bhd posted a RM405.4m net loss in 4QFY25, driven by impairments and asset write-downs related to restructuring, as the group pivots towards an investment-holding model and accelerates asset monetisation.
 

Sentiment: Neutral
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