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Markets Recover as Ceasefire Deadline Nears
Wed, 15-Apr-2026 08:31 am
by Research Team • Apex Research

Malaysian Market Review: The FBM KLCI rose 0.45% to 1,688.12 on Tuesday, recovering from Monday's losses as sentiment improved on expectations of a potential diplomatic breakthrough after President Trump signalled a willingness to resume negotiations with Iran. Market breadth turned positive with 666 advancers against 453 decliners, with Technology (+2.89%), Property (+1.44%) and Utilities (+1.08%) leading gains, while Energy (-0.98%), Healthcare (-0.74%) and Telecommunications (-0.61%) retreated.

Global Markets. Wall Street rebounded on Tuesday, with the Dow advancing 0.66%, the S&P 500 gaining 1.18% and the Nasdaq advancing 1.96%, as technology stocks led for a second consecutive day amid continued optimism over a potential US-Iran deal, while a better-thanexpected March PPI reading eased pipeline inflation concerns (CNBC). In Europe, the STOXX 600 closed up 0.99% on Tuesday, with all major bourses finishing in positive territory, as sentiment improved on renewed hopes that US-Iran peace talks could resume (CNBC). Asian markets also rebounded on Tuesday, with the Nikkei 225 gaining 2.43%, the Kospi advancing 2.74% and China's Shanghai Composite Index rising 0.95%, as hopes of a second round of US-Iran talks lifted risk appetite across the region.

Market Outlook. Markets are expected to remain cautious but increasingly optimistic ahead of the April 22 (Asian time) ceasefire deadline, with President Trump signalling a second round of US-Iran talks could resume in Pakistan within days. Sources confirmed backchannel progress on the nuclear issue, though a gap remains between the US demand for a 20-year suspension of Iranian uranium enrichment and Iran's counter of three to five years (Reuters). The US naval blockade, backed by over 10,000 personnel and more than a dozen warships, saw at least eight ships cross the Strait on Tuesday (Reuters). China called the move "dangerous and irresponsible", while oil eased back below USD100 per barrel on deal optimism (Reuters). The IMF, IEA and World Bank jointly warned that energy and food prices could remain elevated even if the Strait reopens, and direct Israel-Lebanon talks in Washington concluded with Hezbollah vowing not to abide by any agreement (Reuters, Al Jazeera). Against this backdrop, the Malaysian market is expected to remain headline-driven, balancing energy sector tailwinds against the prospect of a sharp oil price correction should talks produce a breakthrough before the ceasefire expires.

Sector focus. We favour energy and plantation stocks amid still-elevated crude and vegetable oil prices, though both face downside risk should a second round of US-Iran talks produce a breakthrough before the April 21 ceasefire deadline. Technology and financials, which rebounded strongly on Tuesday, may see continued support should diplomatic momentum build. Defensive plays including utilities and telecommunications remain attractive amid still-fluid geopolitical headlines, while we turn cautious on healthcare given persistent global uncertainties.
 

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
Muhibbah Engineering secured a RM120 million subcontract from Gamuda's unit for the Penang LRT Mutiara Line project, covering the design, supply and installation of noise barriers and enclosures. (The Edge)

Wentel Engineering Holdings expects a strong year ahead, with its new Kempas, Johor plant set to begin operations in the second half of 2026, supporting stronger revenue growth on steady security equipment demand. (The Edge)

Ocean Fresh Bhd received a RM4.18 million income tax assessment from the Inland Revenue Board covering 2021 to 2024, with the group seeking legal advice and considering a formal appeal. (The Edge)

Empire Premium Food posted a net profit of RM14.6 million on revenue of RM81 million for 3QFY2026, ahead of its Main Market debut. (The Edge)

NWE Resources Group applied for an ACE Market listing to fund product development, R&D and marketing across its health food and personal care businesses. (The Edge)

LYC Healthcare announced that a winding-up suit filed by aesthetic doctor Dr Dinesh Kanasen against two of its subsidiaries has been withdrawn, though with liberty to refile. (The Edge)

TDM Bhd signed a RM72 million deal through its healthcare arm to build and sublease a new specialist hospital block in Tawau, Sabah. (The Edge)

Country Heights Holdings appointed Mohd Rizal Zubair as CEO effective April 15, previously group CEO of UKM Holdings. (The Edge)

Paos Holdings lodged a RM16.1 million proof of debt with the liquidator of Nikmat Mujur Sdn Bhd for outstanding trade receivables, with recovery subject to available liquidation funds. (The Edge)
 

Sentiment: Positive
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