Opening Daily Highlight
Global
Market Remains Fragile
Thu, 18-Dec-2025 07:24 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI closed 0.4% lower, snapping a four-day rally as profit-taking emerged following the index’s move into positive YTD territory. Selling pressure was led by banking heavyweights, including MAYBANK, PBBANK and CIMB, while TENAGA provided some support. Sector performance was mixed, with Telecommunication & Media (-1.0%) and Financial Services (-0.7%) weighing on the index, while Technology (+2.1%) and Energy (+1.2%) offered modest support.

Global Markets Review: Wall Street closed sharply lower on Wednesday, led by a renewed tech sell-off involving Nvidia, Broadcom and Alphabet. The decline came as Oracle’s USD10bn data centre project lost private funding support, reviving concerns over leverage and off-balance-sheet financing tied to AI infrastructure. In Europe, the Stoxx 600 ended little changed, as early gains were erased by weakness in technology stocks. Asian equities traded mixed. Japan’s Nikkei 225 rose 0.3%, rebounding from prior losses on gains in index heavyweights and technology stocks. Meanwhile, Chinese equities rebounded after two days of declines, supported by renewed investor interest in AI-related stocks following recent technology listings.

Market Outlook. We expect the FBM KLCI to continue trading softer today, mirroring weak overnight global sentiment, led by a tech-driven sell-off in the US amid renewed concerns over AI infrastructure financing and rising leverage. This comes despite comments from Federal Reserve Governor Chris Waller, who indicated there could be 50-100 basis points of room for rate cuts next year to support a cooling labour market. While downside may be cushioned by selective buying in defensive sectors, overall risk appetite is likely to remain constrained in the near term. Looking ahead, attention will be on the US inflation print tonight and the Bank of Japan’s policy decision on 19 December, as both are expected to shape expectations for the Fed’s policy path into 2026, currency movements, and global risk sentiment.

Sector focus. We remain positive on selective power-ancillary and renewable energy names, supported by long-term energy transition trends that underpin earnings resilience and continue to attract investor rotation amid heightened global trade uncertainty. AI-related stocks are likely to remain under pressure today, following renewed concerns stemming from Oracle overnight, which have weighed on broader AI sentiment.

Technical Commentary: The FBM KLCI formed a small-bodied bearish candle, signalling waning momentum after four consecutive bullish sessions. Indicators remained 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)

Gamuda Bhd and Samsung C&T secured a RM2.7bn contract in Australia for the Marinus Link undersea cable project, covering civil, structural and electrical works over five years. Gamuda’s share amounts to A$497.0m (RM1.34bn), with on-site works expected to commence in early 2026.

Top Glove Corp Bhd will restart four idle factories, adding 6.0bn pieces to annual capacity, as demand shows meaningful improvement. For 1QFY2026, net profit surged to RM38.6m from RM5.5m a year earlier, while revenue eased slightly to RM883.6m due to lower average selling prices.

Scientex Bhd posted an 11% YoY increase in 1QFY2026 net profit to RM142.9m, with revenue rising 4% YoY to RM1.16bn, driven by cost efficiencies and higher-margin products. Management flagged intense competition in packaging but remains optimistic on affordable housing demand, while noting openness to overseas acquisitions and confirming that the privatisation of Scientex Packaging is on track for completion by Mar 2026.

Apex Healthcare Bhd extended the closing date of its RM2.64 per share takeover offer to 2 Jan 2026, as offeror Pharmora Investment Holdings and its partners currently hold 88.0%, just below the compulsory acquisition threshold.

Paramount Corp Bhd is acquiring 48.5 acres of leasehold land in Shah Alam for RM113.5m, supporting a mixed development with an estimated GDV of RM579.0m over six years, in line with its land bank replenishment strategy.

Jati Tinggi Group Bhd secured a RM117.2m contract from Tenaga Nasional for a 275kV bulk power supply connection to a Johor data centre, with the joint venture project scheduled for completion within 730 days.

TSR Capital Bhd won a RM48.0m infrastructure contract from Sime Darby Property for Stage 3 of the Bandar Bukit Raja township, covering roads, drainage, sewerage, water reticulation and ancillary works.

Silver Ridge Holdings Bhd secured a RM42.9m contract from the Ministry of Education to supply laptops to teachers in Sarawak under a 64-month lease-to-own arrangement, starting Jan 2026 and ending Apr 2031.

ITMAX System Bhd bagged a RM36.0m Home Ministry contract to deploy AI-powered CCTV systems at border points nationwide, comprising a five-month installation phase followed by a 36-month subscription period.

Globaltec Formation Bhd said its Australian associate NuEnergy Gas signed a binding agreement to supply 5.6bn standard cubic feet of coal bed methane to Indonesia’s state gas distributor, with deliveries starting in 2026 and the contract running until 2039.

YNH Property Bhd announced significant board changes following its AGM, with the removal of several directors including the founder’s son, while the founder’s nephews were appointed to key executive roles, signalling a leadership reshuffle.

RHB Bank Bhd ceased to be a substantial shareholder in Vantris Energy after transferring 72.4m shares, while Malayan Banking Bhd emerged as the largest shareholder with a 19.4% stake, following transactions linked to Vantris’ regularisation plan.

Sentiment: Neutral
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.073855 4.107406
EUR 4.789363 4.795370
CNY 0.580525 0.581256
HKD 0.523855 0.527658
SGD 3.153953 3.176981