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Fragile Calm After Trump’s Two-Week Pause
Wed, 08-Apr-2026 07:55 am
by Research Team • Apex Research

Malaysian Market Review: The FBM KLCI fell 0.24% on Tuesday, marking its fourth straight day of declines as investors remained risk-averse amid heightened geopolitical tensions in West Asia, dampening overall market sentiment. Market breadth was negative, with 343 advancers versus 539 decliners. Sector-wise, Healthcare (+0.49%) and Transport (+0.42%) led gains, while Technology (-1.03%) and Utilities (-0.53%) were the main laggards.

 

Global Markets. Wall Street ended mixed on Tuesday, with the Dow slipped -0.18%, While S&P (+0.08%) and Nasdaq (+0.04%) edged higher as investors reacted to U.S. President Donald Trump’s decision to suspend planned attacks on Iranian infrastructure for two weeks (CNBC). Global oil prices fell sharply, with U.S. crude plunging over 14% to below USD100 per barrel after President Trump agreed to a two-week ceasefire with Iran, easing immediate supply disruption concerns (CNBC). In Europe, the pan-European STOXX 600 declined nearly 1% on 7 April as uncertainty surrounding the Iran conflict weighed on sentiment. Asian markets, however, were firmer, with the Nikkei 225 (+0.03%), Kospi (+0.82%), and Shanghai Composite (+0.26%) posting modest gains.

 

Market Outlook. Markets are expected to remain cautious despite U.S. President Donald Trump’s decision to suspend planned strikes on Iranian infrastructure for two weeks, following mediation by Pakistan’s Prime Minister Shehbaz Sharif and Army Chief Asim Munir. The temporary pause, which Trump described as a “double-sided ceasefire” remains conditional on Iran agreeing to reopen the Strait of Hormuz, highlighting the fragile nature of negotiations and the risk of renewed escalation should talks break down. Adding to uncertainty, Trump had earlier warned that “a whole civilization will die tonight” ahead of the deadline, underscoring heightened geopolitical tensions and the unpredictable policy backdrop. The abrupt shift from imminent military action to a conditional pause signals elevated headline risk with markets likely to remain sensitive to further developments, diplomatic responses from Tehran and any changes to the two-week timeline. Against this backdrop, regional markets are likely to trade cautiously, with investors remaining defensive amid fragile negotiations and elevated geopolitical risk.

 

Sector focus. We favour energy amid elevated Middle East tensions 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 fell on Tuesday to mark its fourth consecutive day in the red. This marks a breakdown of the prevailing bullish structure and signalling a shift in market sentiment following recent 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 

Cahya Mata Sarawak Bhd’s deputy chairman Datuk Seri Mahmud Abu Bekir Taib has filed a lawsuit against the company over being allegedly blocked from board meetings. (The Edge)

 

AEON Credit Service (M) Bhd posted a rise in net profit at 10.2% in the fourth quarter on stronger loan and financing growth, coupled with lower impairment losses on financing receivables. (The Edge)

 

DRB-HICOM Bhd, which finalised its takeover of Spirit AeroSystems’ Malaysian operations four months ago, announced an additional purchase price adjustment of US$600,563 (RM2.42 million). (The Edge)

 

Sim Keng Chor has ceased to be a substantial shareholder of property developer Maxim Global Bhd, according to an exchange filing. (The Edge)

 

K Seng Seng Corporation Bhd saw Samuel Ng Heng Hong emerge as a substantial shareholder after a block was bought from the company’s former executive chairman Datuk Keh Chuan Seng and the Chiau brothers. (The Edge)

 

MTT Shipping and Logistics Bhd set its final retail price for its initial public offering (IPO) at RM1.03 apiece. (The Edge)

 

Sinaran Advance Group Bhd has proposed a plan to reduce its share capital in order to eliminate RM33.6 million in accumulated losses. (The Edge)

 

Sersol Bhd has won a RM15.62 million contract from Zetrix AI Bhd to supply the latter with hardware and software services. (The Edge)

 

AWC Bhd bags a RM22.18 million contract to undertake plumbing, silo tank and internal sanitary works in a date centre project. (The Edge)

 

Empire Sushi chain operator Empire Premium Food Bhd saw overwhelming demand for its initial public offering (IPO), with the public portion oversubscribed by 23.3 times ahead of its Main Market debut on April 17. (The Edge)

 

U Mobile Sdn Bhd is finalising its collaboration with Telekom Malaysia Bhd, following the signing of a 5G access agreement between both parties in February this year. (The Edge)

 

Uzma Bhd has secured a letter of award from EnQuest Petroleum Production Malaysia Ltd to provide well intervention and project management services for two years. (The Edge)

 

 

Sentiment: Positive
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