Opening Daily Highlight
Mixed
Range-Bound Trading likely as Risk Appetite Softens
Thu, 30-Apr-2026 07:40 am
by Research Team • Apex Research

Malaysian Market Review: The FBMKLCI closed lower (-0.53%) on Wednesday in line with weaker overnight performance from global equities and defensive posturing ahead of the FOMC interest rate decision. Market breadth was negative with 624 decliners outpacing 477 advancers. Sector wise, Energy (+1.65%), Transportation and Logistics (+0.97%) and Property (+0.52%) led gains, while Finance (-0.88%), REITs (-0.83%), and Technology (-0.83%) were the main laggards.

 

Global Markets: U.S. equities were relatively quiet on Wednesday, with the S&P 500 (-0.04%) and Nasdaq Composite (+0.04%) being marginally changed while the Dow Jones Industrial Average (-0.57%) declined. This comes as the U.S. Federal Open Market Committee held its benchmark Fed Funds rate at 3.5% - 3.75% (CNBC). European equities closed lower, with the STOXX 600 down 0.60% as German inflation rose to 2.9% amidst higher energy prices and the European Commission Economic Sentiment Indicator fell to 93.0 vs 96.6 in March, a three-and-a-half-year low (Reuters). Asian markets traded positively with gains led by the Shenzhen Index (+1.96%), Hang Seng Index (+1.68%), and the SET Index (+0.78%). Japan markets were closed for the holiday (Showa Day).

 

Market Outlook. The near-term market outlook is likely to remain cautious and range-bound, as investors balance regional strength against lingering global macro risks. The FBMKLCI’s decline and the negative market breadth suggest that risk appetite turned softer, with investors rotating defensively ahead of key policy signals and amid renewed inflation concerns from higher energy prices. While the Fed’s decision to hold rates may provide some relief by reducing immediate tightening risk, sticky inflation data in Europe and weaker economic sentiment point to a still-fragile global growth backdrop. The UAE’s abrupt OPEC exit and the U.S. expansion of sanctions from Iran to China-linked entities raises global market uncertainty by creating competing risks for oil: potential medium-term supply increases from the UAE, but continued pressure from geopolitical tensions and sanctions disrupting Iranian crude flows.

 

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 is likely to trade muted today ahead of the Labour Day market closure tomorrow. That said, the broader uptrend remains intact, and the bullish bias is expected to persist unless clear reversal signals emerge.

 

Company News 

Gamuda Bhd said its joint venture has been appointed as the contractor for the first phase of the Ulu Padas water supply project valued at RM5.98 billion. (The Edge)

 

Salutica Bhd will slash about 53% of its workforce beginning April 30, in a sweeping rationalisation exercise aimed at streamlining operations and shoring up long-term financial sustainability. (The Edge)

 

CelcomDigi BhdMaxis Bhd and YTL Power International Bhd’s 60%-owned unit YTL Communications Sdn Bhd have each injected an additional RM202 million shareholder advance into Digital Nasional Bhd (DNB) to support its operations, including spectrum acquisition. (The Edge)

 

MyNews Holdings Bhd announced the appointment of Amir Nashrin Johari as a non-independent and non-executive director effective May 1. (The Edge)

 

Metronic Global Bhd has proposed to acquire 81 units of freehold serviced apartments in Melaka for RM33.24 million, saying the purchase will contribute positively towards future earnings. (The Edge)

 

UOA Real Estate Investment Trust said its plan to acquire three commercial properties from a unit of related-party UOA Development Bhd for RM200 million will not proceed after unitholders voted down the deal. (The Edge)

 

Axis Real Estate Investment Trust reported an 8.3% rise in net income to RM53.2 million for the first quarter from RM49.1 million a year earlier, driven by fair value gain on derivatives amid stable recurring rental income from its property portfolio. (The Edge)

 

IGB Real Estate Investment Trust and IGB Commercial REIT reported higher net property income (NPI) for the first quarter of 2026 on the back of stronger rental income. (The Edge)

 

DPS Resources Bhd is exploring a partnership with an affiliate of Alibaba Group Holding Limited to develop artificial general intelligence (AGI) data centre infrastructure in Melaka. (The Edge)

 

DXN Holdings Bhd’s net profit fell 25.3% in its fourth quarter as higher production costs and foreign exchange losses squeezed profit margins despite a slight increase in sales. (The Edge)

Sentiment: Negative
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