Malaysian Market Review: The FBM KLCI fell 0.16% on Friday, tracking regional weakness, as thinner liquidity due to the Good Friday holiday across major markets led to subdued trading and amplified intraday moves. Market breadth was positive, with 635 advancers versus 415 decliners. Sector-wise, Utilities (+1.93%), Technology (+1.71%) and Healthcare (+1.51%) led gains, while Finance (-1.43%), Property (-0.29%) and Reit (-0.27%) were the main laggards.
Global Markets. Global markets were largely quiet as major bourses in the US and Europe were closed for the Good Friday holiday, resulting in limited catalysts and subdued trading activity. Oil prices, however, moved higher in early Asia trading, with U.S. crude reportedly surpassing USD114 per barrel after President Donald Trump warned Iran to reopen the Strait of Hormuz by Tuesday or face potential strikes on its power infrastructure (CNBC). Asian markets were mixed amid thin liquidity environment. Japan’s Nikkei 225 rose 1.26% on bargain hunting, supported by gains in technology and industrial stocks, while China’s Shanghai Composite fell 1.0% as investors adopted a risk-off stance amid escalating Middle East tensions and ahead of long holiday break, marking its third consecutive weekly decline (The Star).
Market Outlook. Global conditions remain volatile in the near term after President Donald Trump reportedly gave Iran a 48-hour deadline to reopen the Strait of Hormuz, warning of potential strikes on key infrastructure if the passage remains disrupted. The escalating geopolitical tensions have pushed oil prices above USD110 per barrel amid concerns over supply disruptions, as the Strait of Hormuz accounts for a significant portion of global oil shipments. The sharp rise in crude prices may heighten inflationary pressures and dampen risk appetite, potentially weighing on broader equities, while supporting energy and commodity-linked stocks. Against this backdrop, the Malaysian market is expected to remain cautious, with energy-related stocks supported by firmer oil prices, while export-oriented and manufacturing sectors may face margin pressure from rising input and logistics costs amid heightened geopolitical uncertainties.
Sector focus. We favour the energy sector amid escalating Middle East tensions, with upstream oil & gas players benefiting from higher crude prices, supporting near-term earnings momentum. Meanwhile, plantation stocks may gain from firmer crude palm oil prices, supported by stronger competing vegetable oil prices and biofuel demand. Defensive sectors such as utilities and telecommunications also remain attractive as investors shift toward stability amid heightened geopolitical uncertainty and market 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
A 60:40 consortium between Cypark Resources Bhd and Sunview Group Bhd has secured a RM1.962 billion engineering, procurement, construction, testing and commissioning contract from TNB Power Generation Sdn Bhd, a wholly owned unit of Tenaga Nasional Bhd, to develop a 595MWac floating solar plant with battery storage at Tasik Kenyir, Terengganu. (The Edge)
Kerjaya Prospek Group Bhd announced its unit Kerjaya Prospek (M) Sdn Bhd secured a RM98.79 million contract from Sena Letrik (M) Sdn Bhd to build a private hospital in Seremban. (The Edge)
T7 Global Bhd said its unit Tanjung Offshore Services Sdn Bhd secured a one‑year work order from Vestigo Petroleum Sdn Bhd to disconnect, transport, dry dock, and recommission FPSO Berantai. (The Edge)
EG Industries Bhd has acquired an additional 17.51% stake in Thailand-listed ND Rubber (NDR) for 120 million baht (RM15.6 million), raising its holding to 41.59%. (The Edge)
Kee Ming Group Bhd has secured a RM6.7 million subcontract for electrical and commissioning works at a hyperscale data centre in Elmina Business Park. (The Edge)
PTT Synergy Group Bhd has clinched two contracts from Sime Darby Property Bhd. (The Edge)
TSR Capital Bhd has won a RM34 million flood mitigation project at Phase One of the East Coast Expressway. (The Edge)
Bank Negara Malaysia has approved Affin Bank Bhd’s RM50 million cash acquisition of Pheim Asset Management Sdn Bhd. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.014126 | 4.046233 |
| EUR | 4.646911 | 4.656427 |
| CNY | 0.584988 | 0.585633 |
| HKD | 0.512105 | 0.516247 |
| SGD | 3.121896 | 3.147084 |