Malaysian Market Review: The FBMKLCI rose 1.10% on Wednesday, in line with regional markets, as sentiment improved after US President Donald Trump signalled the Iran conflict could potentially end within two to three weeks. Market breadth was positive, with 788 advancers versus 435 decliners. Sector-wise, Technology (+3.31%), Construction (+2.75%) and Finance (+2.19%) led gains, while Transportation & Logistics (-1.01%), Energy (-0.65%) and Industrial Products (- 0.56%) were the main laggards.
Global Markets. US equities advanced on Wednesday, with the Dow (+0.48%), S&P 500 (+0.72%) and Nasdaq (+1.16%) closing higher, while oil prices eased at the start of the month as optimism grew that the US–Iran conflict could de-escalate in the coming weeks (CNBC). In Europe, the STOXX Europe 600 (+2.50%) rallied after President Donald Trump signalled that the conflict may be resolved within weeks (CNBC). Asian markets followed suit, led by Japan’s Nikkei 225 (+5.24%), Hong Kong’s Hang Seng (+2.04%) and China’s Shanghai Composite (+1.46%), as hopes of a potential resolution to the conflict, seen as a key disruption to regional energy supplies, lifted sentiment (CNBC).
Market Outlook. Global conditions remain uncertain as conflicting narratives continue to cloud prospects for a resolution to the US–Iran conflict, with both sides disputing the existence of peace talks and no clear negotiation path in place. While President Donald Trump has stated that the Strait of Hormuz must be “open, free and clear” before any ceasefire discussions, Iran’s Foreign Minister Abbas Araghchi indicated that Tehran is not seeking a ceasefire but rather an end to the war, adding that there are currently no negotiations underway, underscoring persistent divergences and keeping markets highly sensitive to incoming headlines. President Donald Trump addressed the nation at 9 p.m. Wednesday, ET (9 a.m. Thursday, Malaysia time) to provide an “important update” on Iran. Meanwhile, the IEA (International Energy Agency) has warned that an oil supply crunch could worsen in April, with shortages in key fuels such as diesel and jet fuel already evident in Asia and potentially spreading to Europe, raising the risk of energy rationing and slower global growth, particularly across emerging markets. For Malaysia, the FBMKLCI is expected to track external cues closely, with overall sentiment likely to remain cautious amid rising macro headwinds, pointing to a choppy near-term outlook.
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 rebounded back into its prevailing uptrend channel, suggesting that the broader bullish structure remains intact despite recent volatility. This indicates that the recent weakness was likely a healthy consolidation within the ongoing uptrend. Key support is seen at 1,695, with a break below this level potentially reigniting selling pressure.
Company News
Concrete Engineering Products Bhd has received a RM2.60 per share takeover offer from YTL Cement Bhd, a unit of YTL Corp Bhd, for a 53.49% stake worth RM103.79 million. Meanwhile, Inch Kenneth Kajang Rubber Public Limited Company, which holds a 19.32% stake in CEPCO, expects an estimated disposal gain of RM19.97 million. (The Edge)
Dagang NeXchange Bhd has planned for a sukuk wakalah programme of up to RM3 billion for working capital, investments, debt repayment and capex. (The Edge)
Exsim Hospitality Bhd said it has secured a RM41.5 million contract for architectural, mechanical and electrical works. (The Edge)
IJM Corp Bhd has secured a RM658.01 million contract from Sime Darby Property Bhd to build a hyperscale data centre at Elmina Business Park, Selangor. (The Edge)
MGB Bhd has secured a RM200.74 million contract to develop centralised labour quarters in Penang. (The Edge)
NCT Alliance Bhd has appointed Ong Chou Wen as its first chief executive officer. (The Edge)
Salcon Bhd has secured a RM80.4 million contract from Penang’s Perbadanan Bekalan Air Pulau Pinang Sdn Bhd for pipeline supply and installation works linking the proposed Sungai Kerian Water Treatment Plant to Batu Kawan Reservoir, with provision for Jawi Reservoir. (The Edge)
Tenaga Nasional Bhd plans to raise up to RM10 billion via an Islamic medium-term sukuk wakalah programme lodged with the Securities Commission. (The Edge)
Two newly appointed NexG Bhd directors, including Mohamed Najib Ishak — son of executive chairman Datuk Ishak Ismail — have resigned less than a month after joining the board. (The Edge)
Willowglen MSC Bhd is divesting its core remote building automation business to Singapore’s Elixir II Pte Ltd in a cash-and-share transaction worth up to RM215.2 million. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.010109 | 4.042241 |
| EUR | 4.664716 | 4.669969 |
| CNY | 0.585053 | 0.585717 |
| HKD | 0.511674 | 0.515336 |
| SGD | 3.126194 | 3.148644 |