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Global Markets Remain Mixed Amid Middle East Uncertainty
Wed, 25-Mar-2026 07:30 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI fell 0.69% on Tuesday, giving up early gains to close lower as risk appetite waned amid fading hopes of de-escalation in the Middle East conflict while speculation continued over possible involvement by regional and Gulf players. This brought back market uncertainty and prompted investors to adopt a more cautious stance leading to a reversal of earlier gains. Market breadth was negative, with 964 decliners outpacing 286 advancers. Sector-wise, the mood was negative with no leaders during the day. The main laggards were Technology (-2.23%), Healthcare (-1.89%), and Transportation and Logistics (-1.65%). 

 

Global Markets. U.S. equities ended lower on Tuesday, with the Dow (-0.18%), S&P 500 (-0.37%), and Nasdaq (-0.84%) declining as investors weighed the inflationary risk of higher oil prices against optimism that the U.S.-Israeli conflict with Iran could move toward a resolution. Sentiment remained unsettled after President Trump signaled progress in talks, even as reports indicated that additional U.S. troops could be deployed to the Middle East. Earlier, a flash survey indicated that U.S. business activity eased to an 11-month low in March, as the Middle East conflict drove up energy prices and other input costs (Reuters). In addition, Iran has sent a letter to International Maritime Organization member states saying “non-hostile vessels” can transit the Strait of Hormuz “in co-ordination with Iranian authorities” (Financial Times)

 

The pan-European Stoxx 600 ended the session up almost 0.5%, reversing earlier losses, with most sectors closing in positive territory and most major regional bourses finishing higher. Asia-Pacific markets pared gains Tuesday as oil prices rebounded, underscoring lingering uncertainty over the Middle East conflict. Nevertheless, Asian indices were positive with the Kospi (+2.7%), Nikkei 225 (+1.43%), Hang Seng (+2.79%), and CSI 300 (+1.28%) rising. (CNBC)

 

Market Outlook. Global markets are expected to remain volatile but broadly supported, as gains in Europe and Asia offset lingering geopolitical concerns. Meanwhile, Malaysia markets may continue to face near-term pressure from cautious investor sentiment, although firmer crude oil prices could provide support to selected index-linked and energy-related names. Going forward, both global and Malaysian markets are likely to stay headline-driven, with geopolitical developments and commodity trends remaining as key catalysts.

 

Sector focus. We favour the export-oriented sectors amid current geopolitical tensions and currency volatility. Higher oil prices could support the energy and plantation sectors, while defensive yield plays such as utilities remain attractive as investors seek stability in a volatile environment.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI continues to trade above its prevailing uptrend line. This suggests that the broader bullish structure remains intact for now. As long as the index holds above the 1,695–1,700 support zone, the prevailing uptrend is likely to remain intact. A decisive break below this level would weaken the technical structure and may signal a deeper corrective phase.

 

Company News (source: various)

IJM Corporation Bhd said the Malaysian Anti-Corruption Commission has confirmed its investigation does not involve the company, but is limited to several individuals associated with IJM. (The Edge)

 

Eversendai Corporation Bhd has received a termination notice from NEOM Company for its Trojena Ski Village structural steel contract in Saudi Arabia, citing geopolitical developments. (The Edge) 

 

Sabah-based consumer packaged goods distributor and manufacturer Kim Teck Cheong Consolidated Bhd has appointed former chief secretary to the government Tan Sri Mohd Zuki Ali as its non-executive chairman, effective immediately. (The Edge)

 

Food and beverage company Fraser & Neave Holdings Bhd on Tuesday announced the appointment of former Dutch Lady Milk Industries Bhd managing director Tarang Gupta as CEO designate, effective July 1. (The Edge)

 

ACE Market-listed SMRT Holdings Bhd, a provider of end-to-end IoT solutions for businesses, has proposed a transfer to the Main Market of Bursa Malaysia. (The Edge)

 

Cahya Mata Sarawak Bhd has filed an originating summons at the High Court in Kuala Lumpur to set aside an arbitration award and seek a stay on its enforcement in a dispute with Malaysian Phosphate Venture Sdn Bhd (MPV). (The Edge)

 

OSK Holdings Bhd said it plans to offer financial services in Australia through its indirect wholly-owned unit, OSK Asset Management (A) Pty Ltd. (The Edge)

 

Electronic circuit board maker and property company GUH Holdings Bhd has taken legal action against two individuals or Facebook account administrators over posts allegedly linking the group and its subsidiary GUH Properties Sdn Bhd to unlawful activities and unrelated entities. (The Edge)

 

Heineken Malaysia Bhd said the multi-national brewer is gradually shifting production from Singapore to Malaysia and Vietnam, with full impact expected by the third quarter of 2027. (The Edge)

 

Kelington Group Bhd has secured a RM414 million contract to provide a turnkey gas distribution system for a semiconductor wafer fabrication plant in Gujarat, India. (The Edge)

Sentiment: Negative
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