Malaysian Market Review: The FBM KLCI inched up 0.09% to 1,722 on Thursday, with gains capped by continued broad-based selling pressure. Market breadth turned negative with 804 decliners against 373 gainers. Sector wise, Plantation (+1.38%), Industrial Products (+0.60%) and REITs (+0.56%) led gains, while Technology (-2.13%), Property (-0.89%), and Construction (-0.73%) were the main laggards.
Global Markets: U.S. equities closed mixed last Friday, with the Nasdaq Composite (+0.89%) and S&P 500 (+0.29%) edging higher to fresh record highs, while the Dow Jones Industrial Average (-0.31%) declined. Gains were supported by strength in large-cap technology names, led by Apple Inc. following solid earnings, alongside softer oil prices amid renewed Iran peace signals. However, upside was capped after President Donald Trump signalled dissatisfaction with the proposal, highlighting lingering geopolitical uncertainty (The Guardian). European equities were largely muted last Friday, with the STOXX Europe 600 (+0.05%) in holiday-thinned trading, as sentiment remained cautious amid ongoing Middle East tensions and mixed earnings momentum (Reuters). Asian markets were mixed, with losses concentrated in the Hang Seng Index (-1.28%) and Shenzhen Component Index (-0.09%), while gains were seen in the Nikkei 225 (+0.38%) and SET Index (+0.13%) (Yahoo Finance).
Market Outlook. The near-term market outlook is expected to remain cautious and range-bound, as investors navigate a complex interplay between geopolitical risks and an evolving policy backdrop. Persistent tensions surrounding the US–Iran conflict, particularly disruptions in the Strait of Hormuz, continue to underpin elevated energy prices, reinforcing inflationary pressures and dampening risk appetite. While the Federal Reserve’s decision to keep rates on hold provides some near-term relief, the broader policy environment remains uncertain, with markets closely monitoring the anticipated Fed leadership transition and potential shifts in the inflation framework under Kevin Warsh. At the same time, sticky inflation in developed markets and softening economic indicators suggest that global growth remains fragile. The FBMKLCI is expected to trade defensively, with market focus shifting toward earnings guidance, particularly on cost pressures, margins, and demand visibility.
Sector focus. We favour Technology on continued regional strength and AI momentum, while Utilities remain a defensive play with stable earnings visibility. Plantations may see selective support from biofuel demand. Conversely, Transportation & Logistics could face margin pressure from elevated oil prices, while Industrial Products and Healthcare are likely to trade sideways amid limited near-term catalysts.
Technical Commentary: The benchmark KLCI index ended April at 1722.02, up 31.66pts or 1.9% for the month. The index has been consolidating within a Symmetrical Triangle formation since February 2026. While it recently attempted an upside breakout, the move was not sustained.
In May, we expect the KLCI to continue trading within this range until a clearer breakout emerges. A decisive move above the 1,720–1,730 zone could pave the way for a rally towards 1,777, while immediate support is seen at 1,685–1,690, followed by a key floor at 1,660.
Company News
Fraser & Neave Holdings Bhd said it may resort to raising product prices as rising costs weighed on the food-and-beverage company’s recently-ended quarter. (The Edge)
Chin Hin Group Property Bhd said the deal the group entered into to develop a residential project in Taman Connaught, Cheras, has been revoked as it was unable to obtain the relevant development approval for the land. (The Edge)
Jaycorp Bhd plans to acquire the remaining 40% stake in its subsidiary Jaycorp Green Energy Sdn Bhd (JGE) for RM15 million in cash, as part of a broader move to strengthen its presence in the renewable energy segment and diversify its earnings base. (The Edge)
KPS Consortium Bhd, which is mainly engaged in the manufacture of tissue-related products, has proposed to acquire three freehold properties in Rawang for RM45.4 million, for investment purposes. (The Edge)
GDEX Bhd, a logistics and express carrier provider, is restructuring its Vietnam operations amid widening losses at the unit. (The Edge)
Pesona Metro Holdings Bhd, a construction and trading group, is targeting RM500 million in new contract wins under its construction division for the financial year ending Dec 31, 2026 (FY2026). (The Edge)
Cropmate Bhd said on Thursday that its external auditors have issued an unmodified audit opinion with a material uncertainty related to going concern for the financial year ended Dec 31, 2025 (FY2025), citing the freezing of certain bank accounts by authorities and the uncertainty over the duration and financial impact of the restrictions. (The Edge)
Texchem Resources Bhd saw its net profit spike nearly threefold in the first quarter this year, driven by stronger contributions from most of its business divisions, as well as lower finance costs and tax expenses, and higher other income. (The Edge)
CIMB Group Holdings Bhd's 91.45%-owned Indonesian subsidiary, PT Bank CIMB Niaga Tbk, reported a 6.5% year-on-year rise in net profit for the first quarter ended March 31, 2026 (1QFY2026), supported by higher fee-based income and stable operating performance. (The Edge)
Bursa Malaysia Bhd kicked off its financial year 2026 with a higher net profit, driven by improved trading revenue from the securities market. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.957248 | 3.985040 |
| EUR | 4.657427 | 4.662302 |
| CNY | 0.580849 | 0.581472 |
| HKD | 0.505093 | 0.508667 |
| SGD | 3.108871 | 3.130951 |