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Market Steadies as Deal Hopes Build
Fri, 17-Apr-2026 08:06 am
by Research Team • Apex Research

Malaysian Market Review: The FBMKLCI rose 0.37% to 1,689.71 on Thursday as sentiment improved on renewed hopes of a US-Iran de-escalation following fresh diplomatic talks, with buying interest in financials and industrials offsetting weakness in energy and plantation counters. Market breadth was positive, with 763 advancers against 478 decliners, with Technology (+2.86%), Construction (+2.71%) and Property (+1.16%) leading gains, whilst Energy (-0.82%), REIT (- 0.22%) and Plantations (-0.03%) retreated.

Global Markets: On Wall Street, the S&P 500 gained 0.26% to a fresh all-time high of 7,041.28 and the Nasdaq added 0.36% to 24,102.70 - its 12th consecutive positive session, while the Dow Jones Industrial Average rose 0.24% to 48,578.72, as Trump's confirmation of the Israel-Lebanon ceasefire and optimism over a potential US-Iran deal lifted sentiment. In Europe, the STOXX 600 edged down 0.05% on Thursday as investors weighed stronger-than-expected UK GDP data and above-forecast eurozone inflation of 2.6% in March, against cautious optimism over ongoing USIran peace negotiations (CNBC). Asian markets broadly rose on Thursday, with Japan's Nikkei 225 surging 2.38% to an all-time high of 59,518.34, South Korea's Kospi gaining 2.21% and Hong Kong's Hang Seng Index climbing 1.72%, as hopes of a US-Iran peace deal lifted risk appetite across the region, while the Shanghai Composite rose 0.70%, supported by first-quarter GDP growth of 5% year-on-year that beat expectations. (CNBC)

Market Outlook. Markets are poised for another headline-driven session as diplomatic developments surrounding the US-Iran conflict continue to shift rapidly ahead of the April 22 (Asian time) ceasefire expiry. Trump announced a 10-day Israel-Lebanon ceasefire on Thursday, which we see as a potential catalyst for broader peace talks, though uncertainty lingers as Hezbollah reserved the right to respond to attacks and Netanyahu confirmed Israeli forces would not withdraw from southern Lebanon (NYT). Pakistani mediators are in Tehran facilitating a second round of US-Iran negotiations, with Islamabad confirming it expects to host the talks. Trump also voiced confidence a deal with Tehran would come soon, suggesting another round of talks could take place as early as this weekend (BBC). The Pentagon struck a harder tone in parallel, with Defence Secretary Hegseth threatening strikes on Iranian energy infrastructure and warning the naval blockade would hold indefinitely, while the Joint Chiefs chairman warned the blockade could be broadened to intercept ships resupplying Iran beyond the Middle East (CNN). Iran has countered with threats to disrupt shipping across the Persian Gulf, Sea of Oman and Red Sea (NYT). The Malaysian market is expected to track these crosscurrents closely, with oil price volatility remaining the key transmission channel between geopolitical headlines and domestic equity performance.

Sector focus. Thursday's session outperformance in financials and technology suggests both sectors retain momentum and could extend gains if a second round of US-Iran negotiations is confirmed. We maintain a selective stance on energy and plantation stocks as elevated crude and vegetable oil prices continue to support earnings, though accelerating diplomatic progress ahead of the April 22 (Asian time) deadline tilts the risk of a sharp price reversal to the downside. Defensive names in utilities and telecommunications offer insulation against headline risk should talks stall unexpectedly. We turn cautious on shipping and logistics counters as Iran's threats to broaden maritime disruptions beyond the Strait of Hormuz, compounded by the Pentagon's warning that the naval blockade could be extended to intercept vessels resupplying Iran beyond the Middle East, introduce significant operational uncertainty for the sector.
 

FBMKLCI Technical Outlook
Technical Commentary: With the S&P 500 and NASDAQ hitting new highs and Asian indices resuming their uptrend, the FBM KLCI may attempt to reclaim its uptrend line. However, failure to sustain above this level could see selling pressure persist. Immediate downside risk is seen at 1,665, with a break below reinforcing bearish momentum and signalling sustained near-term weakness.

 

Company News
Ancom Nylex Bhd posted a modest rise in net profit to RM18.3 million for 3QFY2026 from RM18.05 million a year earlier, though revenue slipped 0.6% to RM446.16 million on weaker contributions from its agricultural chemicals, logistics and polymer divisions. (The Edge)

Gadang Holdings Bhd swung to a net loss of RM10.38 million in 3QFY2026 from a profit of RM9.08 million a year earlier, with revenue falling 33% to RM170.42 million on higher costs, provisions for expected losses and slower construction progress. (The Edge)

YNH Property Bhd disclosed that its subsidiary received a winding-up petition from the Inland Revenue Board over RM7.21 million in outstanding taxes, with the group confirming a proposed settlement arrangement is in place. (The Edge)

Coastal Contracts Bhd adopted a dividend policy to distribute at least 20% of net profit annually, effective the current financial year. (The Edge)

MTT Shipping and Logistics Bhd posted a 29.2% year-on-year rise in net profit to RM323.45 million for FY2025, with revenue up 6.8% to RM1.28 billion, driven by higher transport volumes and improved charter hire rates ahead of its Main Market debut. (The Edge)

AMS Advanced Material Bhd reported a net profit of RM2.66 million on revenue of RM34.9 million for 1QFY2026, with its semiconductor and engineering support segment accounting for 45.6% of total sales, ahead of its ACE Market listing on April 23. (The Edge)

Zetrix AI Bhd was appointed by Socso to manage registration and contribution processes for its Self-Employment and Housewives' Social Security schemes, effective Thursday. (The Edge)

Plenitude Bhd appointed Ng Yoon Thai as chief executive officer, succeeding Ang Kooi Yong who retired on March 16, with Ng bringing over 26 years of experience in property development and project management. (The Edge)

JcbNext Bhd disposed of a 2.08% stake in Taiwan-listed 104 Corp for RM19.26 million, booking an expected net gain of RM9.6 million from the transaction. (The Edge)

Rimbunan Sawit Bhd received a going concern flag from auditor Crowe Malaysia after current liabilities exceeded current assets by RM119.9 million as at Dec 31, 2025. (The Edge)

Mi Technovation Bhd allocated USD25 million for expansion, including USD10 million for a solder ball production plant in Senai, Johor, targeting first-half 2027 operations, while preparing to list its semiconductor materials unit in Singapore this year. (The Edge)

S P Setia Bhd is set to launch the final phase of its Ferrous series - 70 double-storey terraced homes in Alam Impian, Shah Alam - on April 18, carrying a gross development value of RM75.43 million. (The Edge)

Careplus Group Bhd is disposing of its entire stake in property development unit Centro Heights for RM3.8 million in cash as part of efforts to streamline its asset portfolio. (The Edge)
 

Sentiment: Neutral
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 3.939468 3.970256
EUR 4.653745 4.662279
CNY 0.579514 0.580003
HKD 0.503483 0.506935
SGD 3.096378 3.120719