Malaysian Market Review: The FBMKLCI rose 0.42% to begin the week, mirroring performance in regional peers. Market breadth turned negative, with 657 decliners outpacing 500 advancers. Sector wise, Technology (+1.21%), Finance (+1.02%) and Transportation & Logistics (+0.71%) lead gains, whilst Utilities (-1.26%), Energy (-1.19%) and Property (-1.03%) dragged.
Global Markets: U.S. equities closed modestly lower, with the S&P 500 (-0.24%), Nasdaq Composite (-0.26%) and Dow Jones Industrial Average (-0.01%) declining as escalating U.S.–Iran tensions weighed on sentiment, snapping the Nasdaq’s 13-day winning streak. Risk aversion followed reports of a U.S. seizure of an Iranian vessel in the Gulf of Oman and Iran’s withdrawal from peace talks ahead of the ceasefire expiry, although U.S. futures edged higher overnight, suggesting tentative stabilisation. Looking ahead, focus shifts to upcoming corporate earnings, key retail sales data, and the confirmation hearing of Fed chair nominee Kevin Warsh, who reiterated the importance of central bank independence. European markets also weakened, with the Stoxx 600 down 0.82% amid disruptions in the Strait of Hormuz, pressuring travel stocks while supporting energy names such as BP and Shell on firmer Brent crude. In contrast, Asian markets rebounded, led by gains in the Hang Seng Index (+0.77%), Nikkei 225 (+0.76%) and Kospi (+0.44%), reflecting improved regional sentiment.
Market Outlook. We expect the FBM KLCI to trade on a cautiously positive footing in the near term, supported by resilient domestic sentiment and strength across financials and selected technology names, although upside may remain capped by lingering geopolitical risks. The negative market breadth suggests underlying sentiment remains selective, with investors likely to continue rotating into large-cap defensives and earnings-supported sectors. Externally, market direction will continue to be driven by developments surrounding U.S.–Iran tensions and the Strait of Hormuz, as elevated crude prices could sustain volatility across global risk assets and sector rotations. Nevertheless, firmer overnight U.S. futures and the rebound across key Asian indices point to improving regional risk appetite, which may lend support to local equities. For today, we expect the index to remain range-bound with a mild upward bias, underpinned by positive spillover from regional markets, although sentiment is likely to stay headline-sensitive amid ongoing geopolitical developments and the upcoming batch of U.S. macro and earnings releases.
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
IOI Properties Group Bhd is acquiring Asia Square Tower 2 in Singapore from CapitaLand Integrated Commercial Trust (CICT) for S$2.48 billion (RM7.70 billion). (The Edge)
Tanco Holdings Bhd said media reports and market commentary on the company, its soaring market capitalisation and its proposed development of a smart AI container port in Port Dickson called Midport may have contributed to the recent surge in its share price. (The Edge)
Genting Bhd, via its unit GOHL Capital Limited, is offering to buy back up to US$1.5 billion (about RM5.93 billion) of its 4.25% notes due in 2027. (The Edge)
Construction outfit Varia Bhd has secured a RM293.33 million subcontract for sewerage infrastructure upgrading and pipeline works in Pasir Gudang, Johor. (The Edge)
ES Sunlogy Bhd has secured a RM107.5 million subcontract for mechanical, electrical and ventilation works for an industrial development project in Tebrau, Johor Bahru. (The Edge)
Lotte Chemical Titan Holding Bhd has entered into a deal to sell naphtha — a key petrochemical feedstock — to a related party to mitigate operational risks and ensure continued feedstock supply following the closure of the Strait of Hormuz amid the Iran war. (The Edge)
Mudajaya Group Bhd has secured a favourable ruling from the Court of Appeal in its fund misappropriation case against former employee Michael Chua Khian Keng, with compensation increased to RM72.2 million from the earlier High Court award of RM43.5 million. (The Edge)
NTPM Holdings Bhd is exiting Vietnam in a related-party deal to dispose of its Vietnamese unit, NTPM (Vietnam) Co Ltd, for US$32 million (RM127.33 million) cash to Arch Peninsula Sdn Bhd (APSB), ending over a decade of loss-making operations in the country. (The Edge)
A1 AK Koh Group Bhd said it plans to acquire a one-acre land in Puchong Jaya for RM16.73 million cash to develop its new regional sales and marketing office for central Peninsular Malaysia. (The Edge)
UOA Development Bhd has terminated its shareholder agreement with Care Concierge Care Centre Sdn Bhd (CCCC) and will take full control of its managed care facilities operator, Komune Care Centre Sdn Bhd. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.940670 | 3.966494 |
| EUR | 4.650087 | 4.652677 |
| CNY | 0.579753 | 0.580070 |
| HKD | 0.503205 | 0.506514 |
| SGD | 3.099121 | 3.119407 |