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Islamabad Talks Collapse, Uncertainty returns
Mon, 13-Apr-2026 07:57 am
by Research Team • Apex Research

Malaysian Market Review: The FBMKLCI edged up 0.30% on Friday, supported by gains in technology, property and construction stocks as sentiment improved on the back of the fragile US-Iran ceasefire. Market breadth was positive, with 669 advancers versus 394 decliners. Sectorwise, Technology (+2.13%), Property (+1.38%) and Construction (+1.33%) led gains, while Telecommunications & Media (-0.77%) and Plantation (-0.25%) were the main laggards.

Global Markets. Wall Street ended mixed on Friday, with the Dow declining 0.56%, the S&P 500 slipping 0.11% on cautious ceasefire sentiment, and the Nasdaq advancing 0.55% on the back of semiconductor gains (CNBC). Despite the modest pullback, the S&P 500 posted its best weekly gain since November at 3.6%, while the Nasdaq rose 4.7% and the Dow gained 3% on the week (CNBC). In Europe, the STOXX 600 rose 0.4% with most regional sectors and bourses in positive territory, buoyed by optimism ahead of the weekend US-Iran talks in Islamabad (CNBC). Asian markets closed higher, with the Nikkei 225 gaining 1.84%, the Kospi advancing 1.40% and the Shanghai Composite rising 0.51%, supported by cautious optimism ahead of the Islamabad talks, though gains were capped by lingering uncertainty over the strait remaining largely closed (CNBC).

Market Outlook. The US and Iran failed to reach an agreement after 21 hours of talks in Islamabad, with Vice President JD Vance announcing no deal on Sunday as Iran's nuclear programme, demands over the Strait of Hormuz, and the release of frozen assets remained the core sticking points (NPR). Following the breakdown, President Trump announced via Truth Social that the US Navy would immediately begin blockading all ships entering or leaving the Strait, and intercept every vessel in international waters that had paid a toll to Iran (CNBC). The prospect of a full US blockade is likely to further rattle global energy markets, pushing oil prices higher and unwinding much of the week's relief rally (WBUR News). With the fragile two-week ceasefire set to expire on April 22, no follow-up talks confirmed, and Pakistani mediators urging both sides to hold the truce, uncertainty over the path to a permanent resolution has risen sharply (Washington Times). Against this backdrop, the Malaysian market is expected to remain cautiously, with energy-linked and upstream oil and gas stocks likely finding support on rising crude prices, while export-oriented, transportation and rate-sensitive sectors may face renewed pressure from escalating supply disruptions and elevated input costs.  

Sector focus. We favour the energy sector amid the Islamabad breakdown and Trump's blockade order, with upstream oil and gas players set to benefit from rising crude prices. Plantation stocks may similarly gain from firmer vegetable oil prices. Shipping and logistics names face heightened uncertainty given the Strait of Hormuz closure, while defensive sectors including utilities, telecommunications and healthcare offer relative stability amid rapidly shifting geopolitical headlines. 
 

FBMKLCI Technical Outlook

Technical Commentary: Selling pressure on the FBM KLCI is likely to persist after it failed to hold above the uptrend line. Immediate downside risk shifts to the next support at 1,665, with a break below this level reinforcing bearish momentum and signalling sustained near-term weakness. 
 

Company News

IOI Properties Group Bhd has proposed the establishment and listing of a REIT comprising retail, office and hotel assets valued at RM7.58 billion, including IOI City Mall and IOI City Park, targeting an initial fund size of 5.5 billion units on Bursa Malaysia's Main Market. (The Edge)

Star Media Group Bhd has subscribed to A$35.5 million (RM99.4 million) worth of units in a private closed-end unit trust fund centred on Australian commercial office assets, as part of efforts to diversify its revenue base. (The Edge)

Ecobuilt Holdings Bhd has announced plans to expand into property development and the trading of building materials, anticipating these ventures could account for at least 25% of net profit. (The Edge)

UUE Holdings Bhd has secured a RM16 million contract for electrical system works at a factory in Tanjung Langsat, Johor, covering the supply and installation of 33kV and low-voltage electrical systems. (The Edge)

5E Resources Holdings Bhd posted a full-year net profit of RM21.82 million on revenue of RM80.1 million, ahead of its scheduled ACE Market listing on April 15. (The Edge)

Systech Bhd's newly appointed executive chairman Datuk Ong Theng Soon raised his stake to 4.71% via the acquisition of 15.72 million shares at 9.5 sen each, totalling RM1.49 million. (The
Edge)

West River Bhd has won a RM25.2 million subcontract to provide electrical engineering services for a data centre in the southern region of Peninsular Malaysia. (The Edge)

Infomina Bhd has secured a two-year RM23.49 million contract from the Inland Revenue Board to provide technology infrastructure operations, maintenance and support services. (The Edge)

Bentley Music Group Bhd has partnered with Juara Partners Sdn Bhd to offer shariah-compliant financing plans for musical instruments and music education, targeting civil servants. (The Edge)

Khazanah Nasional Bhd has disposed of its 3.13% stake in TIME dotCom Bhd, with block trades suggesting the sale could have been worth as much as RM335.82 million. (The Edge)

Privasia Technology Bhd is finalising discussions with prospective offtakers for its upcoming 10MW data centre in Bagan Datuk, Perak. (The Edge)

Favelle Favco Bhd has completed its acquisition of French crane manufacturer Seram Industries SAS for between €7.5 million and €10 million, with Seram specialising in hydraulic crane systems. (The Edge)

KJTS Group Bhd has completed the acquisition of a 70.67% stake in iHandal Holdings Sdn Bhd for RM10.1 million, with iHandal focusing on energy efficiency systems including its proprietary Heatfuse waste heat recovery technology. (The Edge)
 

Sentiment: Neutral
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