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Blockade Begins, but Deal Hopes Linger
Tue, 14-Apr-2026 07:42 am
by Research Team • Apex Research

Malaysian Market Review: The FBMKLCI fell 0.64% to 1680.52 on Monday as investors reacted to the US Navy's planned blockade of the Strait of Hormuz following failed Iran-US talks, driving Brent crude above USD100 per barrel. Market breadth was negative with 759 decliners against 403 advancers, whilst Energy gained 2.27% and Industrial Products rose 0.68%, offsetting losses in Healthcare (-2.11%), Finance (-1.44%) and Technology (-1.07%).

 

Global Markets. Wall Street rebounded on Monday, with the Dow advancing 0.63%, the S&P 500 gaining 1.02% and the Nasdaq advancing 1.23% as investors grew hopeful of a deal between the U.S. and Iran after President Trump signalled openness to negotiations. Technology stocks led gains, erasing earlier session losses as mediators from Pakistan, Egypt and Turkey prepare for continued talks. (CNBC). In Europe, the STOXX 600 declined 0.16% with most regional sectors and bourses in negative territory, as investors assessed the Middle East developments over the weekend (CNBC).  Asian markets retreated, with the Nikkei 225 declining -0.74%, the Kospi down -0.86%, though the Shanghai Composite managed a modest gain of 0.06%, as investors weighed the geopolitical escalation and its impact on global oil supplies and economic growth. (CNBC)

 

Market Outlook. Markets are expected to remain cautious and headline-driven as the fragile US-Iran ceasefire shows acute signs of strain following the collapse of the Islamabad talks. With no deal reached after 21 hours of negotiations, President Trump imposed a naval blockade on Iranian ports, while Iran retaliated by threatening all regional ports across the Persian Gulf and Gulf of Oman (CNBC). Trump insisted Iran was "begging to make a deal" and warned that any Iranian vessels approaching the blockade would be immediately eliminated, reinforcing uncertainty over global energy supply and the durability of the ceasefire (NPR). Adding another layer of complexity, Lebanese and Israeli diplomats are set to hold their first direct ceasefire talks in Washington on Tuesday, though Hezbollah leader Naim Qassem has rejected the process as futile and vowed to continue attacks (CNN). At Monday's close, Brent settled up 4.37% at USD99.36 per barrel and WTI advanced 2.6% to USD99.08, as fears of a prolonged conflict continued to weigh on energy markets (CNBC). Against this backdrop, the Malaysian market is expected to trade defensively, with investors closely monitoring developments surrounding the US naval blockade of Iran, the Strait of Hormuz, and Israel-Lebanon tensions for signs of further escalation.

 

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 find support from firmer vegetable oil prices. Defensive plays like utilities offer relative stability amid rapidly shifting geopolitical headlines. We turn cautious on financials, technology and healthcare names, which faced selling pressure on Monday amid the persistent global uncertainties and elevated energy cost.

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 

SMTrack Bhd fell under Guidance Note 3 status as cumulative losses of RM46.76 million exceeded shareholders' equity, and will seek a waiver from Bursa Securities. (The Edge)

 

Ocean Vantage Holdings obtained a High Court order to enforce a RM5.37 million adjudication award against Petrofac Engineering Services for a 2022 Bintulu subcontract dispute. (The Edge)

 

ISF Group's subsidiary Yeo Plumber Sdn Bhd won four subcontracts valued at RM22.48 million for cold water and sanitary plumbing services across service apartments and a data centre. (The Edge)

 

TSH Resources entered a related-party acquisition for RM35.03 million to purchase Konsep Majureka Sdn Bhd, expanding its Indonesian oil palm landbank and supporting plans for a new mill to reduce transport costs. (The Edge)

 

Mitrajaya Holdings won a RM54 million data centre construction contract with NEXTDC for the KL1 Stage 4 facility, due October 2026. (The Edge)

 

Sasbadi Holdings secured five Education Ministry contracts worth RM17.3 million to supply textbooks for the 2027 school curriculum. (The Edge)

 

Heitech Padu resolved a contract dispute with Socso through a RM7 million settlement via consent judgment, with payments scheduled over 28 instalments starting May 28. (The Edge)

 

DXN Holdings signed a 60-year lease with Perbadanan Kemajuan Negeri Kedah for a 26.6-acre industrial parcel in Bukit Kayu Hitam valued at RM28 million, its largest production facility site to date. (The Edge)

 

Golden Destinations Group posted net profit of RM8.1 million on revenue of RM127.24 million in its first quarter ahead of an ACE Market listing scheduled for 16 April. (The Edge)

 

Systech Bhd's executive director and second largest shareholder Dr Low Min Yew disposed of 33.28 million shares representing 4.71% of the company through direct business transactions on 9 and 10 April at 8.9 sen per share. (The Edge)

Sentiment: Neutral
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