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Selective Buying Amid Volatile Backdrop
Wed, 22-Apr-2026 07:46 am
by Research Team • Apex Research

Malaysian Market Review: The FBMKLCI rose 0.77% on Tuesday, extending its performance for the second consecutive day amid improving investor sentiment. Market breadth was positive, with 722 advancers outpacing 502 decliners. Sector wise, Technology (+2.34%), Utilities (+2.28%) and Telecommunications & Media (+2.15%) led gains, whilst Transportation & Logistics (-1.40%), Industrial Products (-0.83%) and Healthcare (-0.73%) lagged.

 

Global Markets: U.S. equities extended losses, with the S&P 500 (-0.63%), Nasdaq Composite (-0.59%) and Dow Jones Industrial Average (-0.59%) declining as uncertainty over a U.S.–Iran peace deal ahead of the ceasefire deadline weighed on sentiment. Risk appetite softened amid reports of stalled negotiations and a pause in diplomatic efforts, although remarks from Donald Trump indicating a possible ceasefire extension offered some support. Oil prices rebounded on renewed supply concerns, with Brent crude and WTI both advancing, underscoring elevated geopolitical risk. Despite near-term volatility, the broader outlook remains underpinned by resilient fundamentals and solid earnings momentum, with UnitedHealth Group outperforming on strong results and Amazon gaining on continued AI investment (CNBC). European markets also trended lower, with the Stoxx 600 declining -0.87% amid heightened caution, while Asian markets bucked the trend, led by gains in the KOSPI (+2.72%), Nikkei 225 (+0.89%) and Hang Seng Index (+0.48%), reflecting improved regional sentiment.

 

Market Outlook. We expect the FTSE Bursa Malaysia KLCI to sustain a mild upward bias in the near term, supported by improving investor sentiment, positive market breadth and continued strength in technology, utilities and telecommunications heavyweights. However, following the recent rebound, gains may moderate as investors turn more selective, with a likely rotation into large-cap defensives and earnings-supported names amid lingering external uncertainties. On the external front, sentiment is expected to remain headline-driven given ongoing U.S.–Iran developments and volatility in Brent crude, which could drive sectoral divergence, particularly between energy-related and consumption-oriented stocks. That said, the resilience seen across key Asian markets should provide a supportive backdrop for Bursa Malaysia, while sustained corporate earnings momentum globally may help anchor risk appetite. For the near term, we expect the index to trade within a range with a slight upward bias, underpinned by regional strength and domestic institutional support, although upside may be capped by geopolitical risks and upcoming global macro catalysts.

 

Sector focus. We favour Technology in the near term, supported by improving risk appetite, regional tech strength and sustained digitalisation trends, with momentum likely to remain intact given their recent outperformance. Utilities may also continue to see interest as a defensive play amid heightened geopolitical uncertainty, offering earnings visibility and stability. Conversely, Transportation & Logistics could remain under pressure amid rising fuel costs linked to firmer Brent crude, while Industrial Products and Healthcare may trade more sideways as investors rotate towards sectors with clearer earnings momentum. Overall, we expect sector rotation to persist, with investors favouring large-cap, earnings-supported and defensive names, while remaining selective amid external volatility and evolving geopolitical developments.

 

FBMKLCI Technical Outlook

 

Technical Commentary: The FBM KLCI has moved back above its uptrend line, indicating a potential recovery in trend. The bullish bias is expected to persist as long as the index holds above this level. Conversely, failure to sustain could lead to renewed selling pressure. Key support is seen at 1,700, with a break below likely to reinforce bearish momentum.

 

Company News 

While NexG Bhd executive chairman Datuk Ishak Ismail had previously disclosed that Bestinet Sdn Bhd founder Datuk Aminul Islam Abdul Nor held a call option over Datuk Abu Hanifah Noordin’s stake in the company, he has now granted Abu Hanifah put options to sell that same block to him, while also securing matching call options over the 323.71 million shares. (The Edge)

 

Karex Bhd, the world's top condom producer, plans to raise prices by 20% to 30% and possibly further if supply chain disruptions drag on due to the Iran war, its chief executive said. (The Edge)

 

GrandCape (M) Sdn Bhd, a joint venture of Cape EMS Bhd and New Grand Tech (HK) Ltd, is expected to generate US$7 million (RM27.68 million) in revenue per month with four current flexible flat cable (FFC) production lines. (The Edge)

 

Steel Hawk Bhd has initiated legal action against a former project partner and four others over alleged breaches of trust, misappropriation of funds and fraudulent misrepresentations linked to an engineering collaboration involving projects for Tenaga Nasional Bhd (TNB). (The Edge)

 

Uchi Technologies Bhd is raising capital expenditure this year even as the firm is wary of currency swings from global geopolitical and economic uncertainties. (The Edge)

 

The Employees Provident Fund (EPF) is no longer a substantial shareholder of Sunway Healthcare Holdings Bhd, after reducing its stake to below 5%. (The Edge)

 

Chin Hin Group Property Bhd has decided not to proceed with the remaining portion of its private placement exercise after the expiry of the extended implementation period. (The Edge)

 

CIMB Group Holdings Bhd’s 94.83%-owned subsidiary CIMB Thai Bank PCL posted an 8.4% increase in net profit for the first quarter, driven by lower expected credit losses and operating expenses. (The Edge)

 

Enra Group Bhd has signed a memorandum of understanding with Boustead Holdings Bhd (BHB) to explore maintenance, repair and overhaul services for naval propulsion and power systems, as well as support for Royal Malaysian Navy vessels throughout their lifecycle.  (The Edge)

 

Separately, Uzma Bhd has inked a MOU with Boustead Holdings Bhd to assess a potential collaboration in satellite-based communications and geospatial data, particularly for defence and security applications. (The Edge)

Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 3.937236 3.968982
EUR 4.641226 4.646163
CNY 0.578698 0.579317
HKD 0.502965 0.506516
SGD 3.093620 3.115441