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Markets Remain in Wait-and-See Mode
Tue, 31-Mar-2026 07:21 am
by Research Team • Apex Research

Malaysian Market Review: The FBMKLCI fell 1.45% on Monday, broadly in line with regional markets, as investors pared risk amid surging oil prices driven by the ongoing Middle East conflict, now in its second month. Market breadth was negative, with 389 advancers versus 941 decliners. Sector-wise, Plantation (+3.58%), Healthcare (+2.92%) and Industrial Products (+1.25%) led gains, while Construction (-4.75%), Property (-2.83%) and Finance (-2.35%) were the main laggards.

Global Markets. Wall Street ended mixed on Monday, with the Dow rising 0.11% while the S&P 500 (-0.39%) and Nasdaq (-0.73%) declined, weighed by higher oil prices and a sharp pullback in tech, even as investors took comfort from Fed Chair Powell’s view that inflation expectations remain “well anchored” and that an oil-driven shock does not warrant rate hikes (CNBC). In Europe, the STOXX Europe 600 rose 0.94% despite escalating tensions in Iran and signs of weakening economic sentiment (CNBC). Meanwhile, Asian markets fell sharply, led by declines in Japan’s Nikkei 225 (-2.79%), South Korea’s Kospi (-2.97%) and Hong Kong’s Hang Seng (- 0.81%), as the Middle East conflict entered its fifth week with limited progress toward a diplomatic resolution (CNBC).

Market Outlook. Global markets remain on edge as elevated oil prices and ongoing geopolitical tensions reinforce a more persistent inflation outlook, dampening expectations for near-term monetary easing despite Fed Chair Jerome Powell’s view that inflation expectations remain well anchored and policy should look through short-term energy volatility. Meanwhile, President Donald Trump said the US is in “serious discussions” with a “new, and more reasonable” regime to end military operations in Iran, offering some hope of de-escalation, but also warned that failure to reach a deal “shortly” and reopen the Strait of Hormuz “immediately” could result in the US “completely” destroying Iran’s key energy infrastructure. That said, Iran has denied any direct talks, and the lack of concrete progress continues to cap risk appetite. Against this backdrop, Malaysia’s market outlook is expected to remain cautious, with sentiment staying fragile despite continued foreign net inflows, as investors favour defensive and commodity-linked sectors while remaining sensitive to external risks and oil price movements.

Sector focus. We favour the energy sector amid Middle East tensions, with upstream oil & gas benefiting from higher crude prices, supporting near-term earnings. Plantations may see indirect support from firmer biofuel demand, while defensive utilities remain attractive as investors seek stability amid heightened volatility.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI has broken below its prevailing uptrend line, signalling weakening near-term momentum and a potential shift into a consolidation phase. Immediate support is seen at 1,650. A sustained break below this level could trigger further downside, while a move back above the former trend line may help restore bullish momentum.

 

Company News (source: various)

AirAsia X Bhd is not cancelling flights despite rising jet fuel costs from the Middle East conflict, said adviser Tan Sri Tony Fernandes. (The Edge)

Bumi Armada Bhd has proposed a RM1.95 billion capital reduction to erase RM1.45 billion in accumulated losses, leaving RM498.59 million in retained earnings. (The Edge)

Capital A Bhd, still under Practice Note 17 (PN17) status, is targeting a dual listing in Hong Kong by August. Separately, Capital A appointed Effendy Shahul Hamid, former CIMB digital banking chief, as deputy CEO to strengthen its digital and aviation services business. (The Edge)

Crescendo Corp Bhd’s 4QFY2026 net profit fell 60.1% to RM1.04 million despite higher revenue, weighed by relocation costs and losses at a subsidiary. (The Edge)

Empire Premium Food Bhd, operator of Empire Sushi, corrected its IPO prospectus to reflect RM254 million fundraising. (The Edge)

EP Manufacturing Bhd is acquiring 18.75 acres of industrial land in Alor Gajah, Melaka for RM35.12 million to expand vehicle assembly and component operations. (The Edge)

Kawan Renergy Bhd posted a 17% rise in 1QFY2026 net profit to RM5.77 million, driven by higher revenue. (The Edge)

Media Chinese International Ltd is selling 1.88 acres of land in Toronto for C$9.9 million (RM28.65 million) after shutting its Canadian media operations. (The Edge)

Orkim Bhd is acquiring the oil and chemical tanker Rich Sunda for US$24.2 million (RM97 million) from Singapore’s Wealth Sail Shipping Pte Ltd mainly funded by IPO proceeds. (The Edge)

Paragon Globe Bhd is partnering Shanghai-listed GSP Automotive Group to develop a 47-acre automotive hub in Iskandar Puteri, Johor. (The Edge)

Shangri-La Hotels (Malaysia) Bhd said its unit UBN Tower Sdn Bhd renewed related-party tenancy agreements for office space at UBN Tower, Kuala Lumpur, at 3% higher rental rates effective April 2026. (The Edge)

Vantris Energy Bhd, formerly Sapura Energy, posted an operating profit of RM142.4 million in 4QFY2026, reversing a RM104 million loss a year earlier, marking progress towards exiting Practice Note 17 (PN17) status. (The Edge)
 

Sentiment: Neutral
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