Malaysian Market Review: The FBM KLCI fell 0.87% on Monday, as escalating tensions in Middle East weighed on investor sentiment, resulting in broad-based declines and a more cautious riskoff tone across the market. Market breadth was positive, with 661 advancers versus 363 decliners. Sector-wise, Utilities (+0.31%) and Technology (+0.19%) led gains, while Healthcare (- 3.74%) and Industrial (-0.97 %) were the main laggards.
Global Markets. Wall Street rose on Monday, with the Dow rising 0.36%, S&P rose 0.44% and Nasdaq rose 0.54% amid cautious hopes for a de-escalation in Middle East hostilities, which remained the market's main catalyst, ahead of President Trump's deadline for an Iran deal (CNBC). Oil prices eased after earlier gains, with Brent crude retreating from above USD110 per barrel to around USD108, following reports of potential U.S.–Iran ceasefire talks that helped alleviate immediate supply disruption concerns. (BBC). Asian markets closed mostly higher yesterday, with the Nikkei (+0.55%), Kospi (+0.39%) and Hang Seng (+0.28%) gaining amid cautious optimism over potential U.S.–Iran ceasefire talks, although gains were capped by persistent geopolitical uncertainty and oil price volatility. (WSJ).
Market Outlook. Markets are expected to remain cautious as geopolitical tensions escalate following reports of potential Iranian strikes targeting Saudi energy infrastructure, raising risks of broader regional escalation and possible disruptions to key Gulf supply routes. While earlier discussions of a temporary ceasefire had supported sentiment, Tehran has reportedly rejected short-term proposals, instead pushing for a more comprehensive resolution, highlighting fragile negotiations. This comes ahead of reported timelines for Iran to reopen the Strait of Hormuz, with warnings of potential U.S. strikes further elevating geopolitical risks. Against this backdrop, risks to Middle East oil flows remain elevated, signalling tighter global energy markets and sustained inflationary pressures, with Asian markets likely to trade cautiously amid heightened volatility in the near term.
Sector focus. We favour the energy sector amid elevated Middle East tensions, with higher crude prices supporting near-term earnings. Plantations may gain from firmer CPO prices, while defensive utilities and telecommunications remain attractive amid heightened market volatility.
Technical Commentary: The FBM KLCI has breached its key support at 1,695, marking a breakdown of the prevailing bullish structure and signalling a shift in market sentiment followingrecent volatility. Immediate downside risk now pivots to the next support at 1,665, where a break below this level would reinforce bearish momentum and indicate sustained downward pressure in the near term.
Company News
Sunway Bhd’s RM11 billion takeover attempt of IJM Corp Bhd has fallen through after failing to secure the required majority stake, with acceptances reaching only 33.43% by the April 6 deadline. (The Edge)
IJM Corp Bhd said it is moving forward with executing its proposed strategy to deliver value across its portfolio, after the majority of its shareholders rejected Sunway’s takeover offer. (The Edge)
Reneuco Bhd is facing suspension and delisting after Bursa Malaysia Securities rejected its application for a further extension of time to submit its regularisation plan. (The Edge)
Bursa Malaysia Bhd’s new reclassification of equities investor trading data to better reflect ownership and origin of funds takes effect on April 6. (The Edge)
AmBank Group has extended a RM2 billion syndicated Islamic financing facility to Weststar Aviation Services Sdn Bhd (WASSB), the aviation division of Weststar Group, to support the expansion of its helicopter fleet, bolster working capital and manage foreign exchange needs. (The Edge)
Bumi Armada Bhd announced the resignation of chief executive officer Gary Neal Christenson after eight years in the role, requesting an early release from his term that was originally set to end in May 2026. (The Edge)
DXN Holdings Bhd has appointed its chief executive officer Prajith Pavithran to the company’s board as an executive director. (The Edge)
Frozen seafood producer PT Resources Holdings Bhd said it booked a loss of RM17.81 million from a fire incident at its coconut processing facility in China's Fujian Province, based on preliminary assessments. (The Edge)
Bursa Malaysia Securities has approved edible bird’s nest processor Enest Group Bhd's proposed withdrawal from the LEAP Market as part of its planned transfer to the ACE Market. (The Edge)
RAM Rating Services Bhd revised its outlook on MNRB Holdings Bhd and its wholly-owned unit Malaysian Reinsurance Bhd to positive from stable, while reaffirming all key ratings. (The Edge)
K Seng Seng Corp Bhd announced that two of its board of directors have resigned. The group said non-independent non-executive director Dr Lim Pang Kiam and executive director Lee Hai Peng have tendered their resignations, citing personal commitments as reasons. (The Edge)
Hibiscus Petroleum Bhd’s third largest shareholder Mettiz Capital Sdn Bhd has ceased to be a substantial shareholder, following disposals of shares. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.011541 | 4.043725 |
| EUR | 4.649473 | 4.654217 |
| CNY | 0.585256 | 0.585891 |
| HKD | 0.512087 | 0.515706 |
| SGD | 3.125831 | 3.148049 |