Opening Daily Highlight
Global
Downside Bias Amid Rising Global Risks
Fri, 24-Apr-2026 07:40 am
by Research Team • Apex Research

Malaysian Market Review: The FBMKLCI staged a strong rebound on Thursday, surging +0.66%, supported by selective buying in banking and telecommunications heavyweights amid improved investor sentiment following the extended ceasefire in Middle East. Market breadth was positive, with 706 advancers outpacing 485 decliners. Sector wise, Industrial Products (+2.19%), Healthcare (+1.38%) and REIT (+0.76%) led gains, while Plantation (-0.35%) was the only laggard.

 

Global Markets: U.S. equities closed lower in choppy trading, with the S&P 500 (-0.41%), Nasdaq Composite (-0.89%) and Dow Jones Industrial Average (-0.36%) declining as fading hopes for a near-term resolution to the Iran conflict weighed on risk sentiment. Tensions in the Strait of Hormuz, where Iran tightened control and seized vessels, heightened concerns over potential disruptions to global energy supply and trade flows, keeping investors cautious. Elevated oil prices added to the pressure, with Brent crude holding above $100/bbl, reinforcing inflation concerns and contributing to market volatility. A mixed earnings season offered limited support, particularly within the technology sector where concerns over AI-driven disruption weighed on software names, leading to relative underperformance in the Nasdaq. European equities edged marginally higher, with the Stoxx 600 up 0.05% amid mixed sector performance, as sentiment remained subdued. Concerns over energy security intensified following warnings from the International Energy Agency, while weaker growth prospects in Germany and firmer inflation signals from the U.K. continued to cap upside. Meanwhile, Asian markets retreated, led by declines in the Jakarta Composite Index (-2.16%), SET Index (-1.24%) and Hang Seng Index (-0.95%), as investors turned more cautious amid ongoing geopolitical developments in Middel East.

 

Market Outlook. We expect the FBM KLCI to trade with a downward bias today, as external headwinds and cautious global sentiment are likely to outweigh the recent rebound driven by foreign inflows. Despite improving market breadth previously, the lack of broad-based sector participation suggests underlying momentum remains fragile, which could lead to near-term profit taking. Externally, persistent tensions in the Strait of Hormuz and elevated Brent crude prices continue to cloud the outlook, raising inflation concerns and dampening risk appetite. The pullback in U.S. equities and weakness across regional markets further reinforce a risk-off tone, which is likely to weigh on domestic sentiment.

 

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

Source: Bloomberg

 

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 

Fresh from staving off a takeover, IJM Corporation Bhd is now aiming to list its mainstay construction business before the end of 2027. (The Edge)

 

Solarvest Holdings Bhd has secured a RM1.06 billion engineering, procurement, construction and commissioning (EPCC) contract for a large-scale solar (LSS5) farm with a capacity of 470MW in Larut and Matang, Perak. (The Edge)

 

ViTrox Corp Bhd said it anticipates a sustained growth trajectory throughout 2026, as the global semiconductor industry enters a robust expansion phase, after delivering its second-highest quarterly net profit in the first quarter ended March 31, 2026 (1QFY2026). (The Edge)

 

Wawasan Dengkil Holdings Bhd announced that it has secured a RM22.7 million contract to build residential units in Sepang, Selangor. (The Edge)

 

Vetece Holdings Bhd, an enterprise IT firm, has secured a contract valued at RM39.63 million to provide Salesforce’s customer relationship management cloud software to a Malaysian utility company. (The Edge)

 

Sarawak-based Insights Analytics Bhd has secured a RM12.24 million subcontract for substation work in Sibu, Sarawak. (The Edge)

 

Tanco Holdings Bhd has revised the commercial structure of its proposed smart AI container port in Port Dickson, replacing an earlier long-term lease arrangement with a port development concession (PDC) model, which formalises the project under a concession framework while preserving the planned payment structure and tenure of up to 98 years. (The Edge)

 

Chin Teck Plantations Bhd has warned that crude palm oil (CPO) prices are expected to be volatile amid the uncertainties in Middle East geopolitical conflicts, although stronger global biodiesel demand could lend support to prices. (The Edge)

 

UUE Holdings Bhd posted a sharp increase in its fourth-quarter earnings, supported by higher revenue across its core business segments. (The Edge)

 

Pantech Global Bhd, a steel pipe and pipe fitting maker, ended the final quarter of its latest financial year with lower earnings, on the absence of a one-off gain, as well as operating expenses weighing on its bottom line. (The Edge)

Sentiment: Negative
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