Opening Daily Highlight
Mixed
Geopolitical Relief Lifts Global Markets
Mon, 20-Apr-2026 07:38 am
by Research Team • Apex Research

Malaysian Market Review: The FBMKLCI rose 0.33% to 1,695.21 on Friday as sentiment improved on renewed hopes of a US-Iran de-escalation following fresh diplomatic talks, with buying interest in heavyweight consumers and finance offsetting weakness in energy and telecommunications counters. Market breadth was positive, with 612 advancers against 476 decliners, with REIT (+0.94%), Consumer (+0.84%) and Telecommunications & Media (+0.68%) leading gains, whilst Healthcare (-0.50%), Energy (- 0.18%) and Construction (-0.13%) retreated.

 

Global Markets: Wall Street rallied strongly on Friday, with two of the three major indices posting fresh record highs as easing geopolitical tensions in the Middle East lifted risk sentiment. The S&P 500 rose 1.20% to 7,126.06, while the Nasdaq surged 1.52% to extend its winning streak to 13 consecutive sessions, its longest since 1992. The Dow Jones Industrial Average jumped 1.79%, supported by broad-based gains, while the Russell 2000 also climbed over 2% to a new high. The rally was driven by Iran’s decision to reopen the Strait of Hormuz following a ceasefire agreement between Israel and Lebanon, which significantly reduced fears of supply disruptions. Oil prices plunged in response, with WTI crude falling over 10% to USD85 per barrel and Brent declining sharply, triggering a rotation out of energy stocks. Major oil names such as Exxon Mobil and Chevron came under pressure, while sectors sensitive to lower fuel costs, including airlines and travel, outperformed. European equities surged on Friday, with the STOXX 600 climbing 1.56% as improving geopolitical developments boosted risk appetite. The rally was broad-based, with travel and leisure stocks leading gains, rising nearly 4.7% as airlines and tourism-related names rebounded sharply on expectations of lower fuel costs. (CNBC) Asian markets fell sharply on Friday, with Japan's Nikkei 225 plunging -1.75%, Hong Kong's Hang Seng Index falling -0.89% and South Korea's Kospi dropping -0.55%, as profit taking emerged after the recent rally.

 

Market Outlook. We expect the local market to trade with a cautious bias today as geopolitical risks re-escalate following Iran’s move to shut the Strait of Hormuz once again over the weekend. The renewed disruption to a key global oil transit route has reversed last week’s risk-on sentiment, lifting crude oil prices and dampening investor confidence. This shift is likely to weigh on overall market sentiment, particularly after the strong rally seen in global equities previously. The rebound in oil prices may lend support to energy-related counters, while sectors sensitive to higher input costs, including consumer and transport names, could face renewed pressure. At the same time, heightened uncertainty may trigger a rotation back into defensive sectors and profit-taking in recent outperformers. While underlying liquidity conditions and prior foreign inflows may help limit downside, near-term direction will likely be driven by developments in the Middle East, with volatility expected to remain elevated.

 

Sector focus. 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 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. 

 

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 

MN Holdings Bhd announced on Friday that it has secured a RM275.9 million contract to carry out electrical infrastructure works for a data centre project. (The Edge)

 

Bina Puri Holdings Bhd has obtained a subcontract worth RM156.45 million for road construction and upgrading works in Simunjan, Sarawak. (The Edge)

 

Exsim Hospitality Bhd has secured a RM138 million subcontract from a subsidiary of Binastra Corporation Bhd to carry out fit-out works for a local development project. (The Edge)

 

Inari Amertron Bhd and China’s Sanan Optoelectronics Co Ltd have decided to withdraw from their planned joint acquisition of Lumileds Holding BV after US authorities raised national security concerns. (The Edge)

 

7-Eleven Malaysia Holdings Bhd has announced an interim single-tier dividend of 1.35 sen per share for the financial year ended Dec 31, 2025 (FY2025). (The Edge)

 

Aizo Group Bhd announced that it has received approval from Bursa Malaysia to proceed with several corporate initiatives aimed at raising funds and improving its financial standing. (The Edge)

 

InNature Bhd, which operates The Body Shop outlets in Malaysia, Singapore, Vietnam, and Cambodia, announced on Friday that Dexter Foong Chuen Hsien has been appointed as an executive director. (The Edge)

 

FBG Holdings Bhd, previously known as Fajarbaru Builder Group Bhd, announced that it has been appointed as a specialist contractor for the Malaysian Institute of Road Safety Research’s (Miros) testing laboratory and complex building project. (The Edge)

 

Foam and fabric products manufacturer WTEC Group Bhd has proposed acquiring a detached factory with office space in Semenyih, Selangor, as part of its plan to consolidate manufacturing operations. (The Edge)

 

Engineering services company Kawan Renergy Bhd has secured a RM70.37 million contract to supply diesel generator systems to a data centre services provider. (The Edge)

 

K Seng Seng Corp Bhd has proposed changing its name to EC Excel Holdings Bhd, with the new name already approved and reserved by the Companies Commission of Malaysia (SSM). (The Edge)

Sentiment: Positive
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 3.934295 3.965993
EUR 4.655846 4.660797
CNY 0.578526 0.579141
HKD 0.502632 0.506203
SGD 3.093822 3.115764