Opening Daily Highlight
Mixed
Cautious Sentiment Persists as Global Risks Temper Domestic Rebound
Wed, 29-Apr-2026 07:36 am
by Research Team • Apex Research

Malaysian Market Review: The FBMKLCI closed higher (+0.72%) on Tuesday due to an improvement in local sentiment and buying in index-linked counters. External risks continue to linger with the evolving Middle-East situation as peace talks have yet to reach a clear resolution. Market breadth was mixed with 634 decliners marginally outpacing 621 advancers. Sector wise, Property (+2.79%), Construction (+2.57%) and Finance (+0.92%) led gains, while Technology (-0.51%) was the main laggard.

 

Global Markets: U.S. equities closed lower on Tuesday, with the S&P 500 (-0.49%), Nasdaq Composite (-0.90%), and the Dow Jones Industrial Average (-0.05%) declining. The indices had declined following a Wall Street Journal report that described OpenAI’s miss in revenue and new user growth as well as CFO Sarah Friar’s concerns on OpenAI’s financial ability to sustain computing contracts (CNBC). In other news, preliminary results from the U.S. Conference Board shows that the Consumer Confidence index had climbed 0.6 points to 92.8 with higher gasoline prices remaining as a concern amongst U.S. consumers. Median 12-month inflation expectations remained high at 5.1% this month vs 5.2% in March. Economists have noted that the improvement is likely temporary as confidence levels remain below levels seen in January 2025 (Reuters). Also, the United Arab Emirates has said that it was quitting OPEC, effective May 1, after nearly 60 years as a member. UAE Energy Minister Suhail Mohamed al-Mazrouei has said that the move was made after examining the country’s energy strategies (Reuters).

 

European equities closed lower, with the STOXX 600 down 0.37% with most regional sectors and major bourses closing lower. Asian markets closed lower as well with losses led by the Shenzhen Index (-1.10%), Nikkei 225 Index (-1.02%), and Hang Seng Index (-0.95%). The Bank of Japan had maintained its policy rate at 0.75% while revising inflation estimates upwards. Three of nine central bank members had called for rate hikes. Commenting on the Middle East conflict, BoJ Governor Kazuo Ueda said that the uncertainty over the conflict has diminished confidence in achieving forecasts in addition to downside risks to growth and upside risks to inflation becoming more pronounced for Fiscal Year 2026 (April 1, 2026 to March 31, 2027) (Reuters).

 

Market Outlook. Market sentiment is expected to remain cautious in the near term as investors weigh improving domestic momentum against softer global risk appetite and lingering geopolitical uncertainty in the Middle East. While the FBMKLCI’s rebound was supported by bargain-hunting and renewed interest in index-linked counters, the mixed market breadth suggests that participation remains selective. Externally, weakness across U.S., European and Asian equities may cap upside amid renewed concerns over AI-related spending and global growth expectations. Meanwhile, the UAE’s planned exit from OPEC and the unresolved Middle-East situation could keep energy markets volatile, adding to inflation and policy uncertainty.

 

Sector focus. We favour Technology in the near term, supported by regional tech strength and sustained digitalisation trends, with momentum likely to remain intact given their recent outperformance. Plantations may see indirect support from firmer biofuel demand while 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.  

 

FBMKLCI Technical Outlook

 

Technical Commentary: The FBM KLCI heads into the final week of April with a positive bias, having firmly established a support base above the 1,700 level. While short-term pullbacks may emerge on profit-taking, the overall uptrend remains intact. However, the index could face some resistance near its downtrend line, as regional and local market closures for Labour Day are likely to result in lighter trading volumes this week.

 

Company News 

Pimpinan Ehsan Bhd has proposed to distribute RM62.9 million in cash to shareholders and voluntarily delist from the Main Market of Bursa Malaysia after the collapse of its long-delayed Practice Note 16 (PN16) regularisation plan involving renewable energy firm reNIKOLA Holdings Sdn Bhd. (The Edge)

 

KLCCP Stapled Group controlled by Petroliam Nasional Bhd, said rising cost pressures may weigh on its retail and hotel segments this year amid heightened economic uncertainty from prolonged Middle East tensions. (The Edge)

 

Jasa Kita Bhd is acquiring KT System Sdn Bhd in a deal worth RM10 million as part of its efforts to enter the power and utilities infrastructure sector. (The Edge)

 

Tropicana Corp Bhd is acquiring a total of 15 parcels of land measuring about 24.15 acres in Langkawi, Kedah for a total of RM195.88 million. (The Edge)

 

Avaland Bhd said it is acquiring 7,613 square metres of freehold land in Taman U-Thant, Kuala Lumpur for RM86.04 million to expand its presence in the high-end residential segment within the Klang Valley. (The Edge)

 

7-Eleven Malaysia Holdings Bhd said its 60%-owned unit has proposed to acquire a 2.13-acre land in Seri Kembangan for RM19 million, on which it plans to establish a food commissary. (The Edge)

 

Nestlé (Malaysia) Bhd said it remains confident in its ability to navigate a volatile operating environment this year, after reporting a 27.1% increase in net profit for the first quarter. (The Edge)

 

Eco-Shop Marketing Bhd said its net profit rose more than 15% in the third quarter, driven by higher revenue and improved margins. (The Edge)

 

LPI Capital Bhd flagged softer demand for insurance amid broad economic slowdown and volatile markets as it kicked off 2026 with less than 2% growth in net profit. (The Edge)

 

Alpha IVF Group Bhd said demand for assisted reproductive services remains resilient and is not directly affected by geopolitical conflicts, as the fertility specialist advances its regional expansion plans after posting a 4.6% rise in quarterly net profit. (The Edge)

Sentiment: Neutral
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