Malaysian Market Review: The FBM KLCI rose 0.54% to 1,757 on Wednesday, driven by improved investor sentiment amid easing tensions in West Asia. Market breadth turned positive with 795 gainers against 493 decliners. Sector wise, Technology (+3.12%), Construction (+2.55%) and Utilities (+2.15%) led gains, while Healthcare (-0.93%), Energy (-0.46%) and Plantation (-0.44%) were the main laggards.
Global Markets: U.S. equities rallied overnight, with the Nasdaq Composite (+2.02%) and S&P 500 (+1.46%) closing at fresh record highs, while the Dow Jones Industrial Average rose 1.24%, driven by easing geopolitical tensions and renewed strength in semiconductor stocks. Sentiment improved following reports that the U.S. and Iran were nearing a potential agreement, reducing concerns over broader regional conflict and disruption at the Strait of Hormuz. Oil prices retreated sharply, with Brent crude falling more than 3% to around USD102/bbl and WTI slipping below USD99/bbl, easing energy-driven inflation concerns and lifting overall risk appetite (CNBC). European equities also advanced, with the STOXX Europe 600 (+2.22%) supported by broad-based buying interest as easing Middle East tensions and softer oil prices improved sentiment, while upbeat corporate earnings further underpinned gains (Yahoo Finance). Asian markets closed higher, led by South Korea’s Kospi (+6.45%) which surged to a record high as Samsung Electronics jumped 15%, while Hong Kong’s Hang Seng Index gained 1.22% amid improving regional sentiment (Reuters).
Market Outlook. The near-term market outlook is turning more constructive, supported by easing geopolitical tensions and improving risk appetite. Reports suggesting progress toward a potential U.S.–Iran agreement have reduced concerns over broader supply disruptions and instability around the Strait of Hormuz, with Washington reportedly expecting a response from Tehran on several key negotiation points within the next 48 hours. Nonetheless, volatility is likely to persist after President Donald Trump warned that military action could intensify should negotiations fail. Meanwhile, oil prices have retreated sharply, with Brent crude easing toward USD102/bbl, helping to alleviate energy-driven inflation concerns and potentially reducing pressure on the Federal Reserve’s higher-for-longer policy stance. Overall, the FBM KLCI is expected to remain supported in the near term, although market sentiment will continue to track geopolitical developments, oil price movements and earnings sustainability.
Sector focus. We favour Technology in the near term, supported by sustained AI-driven demand and renewed strength in semiconductor stocks. Energy remains a tactical play amid crude oil volatility linked to developments around the Strait of Hormuz, while Plantation is supported by firmer CPO prices via biofuel linkages.
Technical Commentary: The benchmark KLCI index has staged a breakout above its symmetrical triangle formation, signalling further upside towards 1,777 and confirming a continuation of the broader uptrend following a three-month consolidation phase. The index has also extended gains for a third consecutive session, supported by improving market sentiment. This comes amid reports that the US and Iran are nearing a ceasefire framework, raising expectations of easing Middle East tensions and reducing risks to oil supply, which in turn has lifted Asian equities, reflecting improving market sentiment. Immediate support is pegged at 1,735.
Company News
Pay-TV operator Astro Malaysia Holdings Bhd has confirmed it will not be the primary broadcaster for the upcoming Fifa World Cup, officially ending a two-decade uninterrupted run as the tournament's home in Malaysia. (The Edge)
Petronas Gas Bhd has entered into a deal to secure access to jetty facilities for handling liquefied natural gas cargoes, a move deemed crucial for the development of the group's third regasification terminal (RGT-3) in Lumut, Perak. (The Edge)
Padini Holdings Bhd clarified that none of its employees, officers or management was detained by the Malaysian Anti-Corruption Commission (MACC). (The Edge)
Semiconductor support services firm Frontken Corporation Bhd saw its net profit rise more than 36% in the first quarter, driven by improved performance across core businesses and effective cost management. (The Edge)
Hong Leong Industries Bhd posted a 39.9% jump in net profit for its third quarter, driven by an improved motorcycle sales mix and lower raw material costs amid favourable foreign exchange movements. (The Edge)
Marine and industrial engineering products distributor Pansar Bhd said its wholly-owned unit Perbena Emas Sdn Bhd has bagged a RM234.89 million contract from Sarawak Rural Water Supply Department (JBALB) for a water treatment plant project in Saratok, Betong. (The Edge)
A fund backed by EWI Capital Bhd has completed its first major property acquisition in Melbourne, Australia, for A$381 million (RM1.09 billion). (The Edge)
Mudajaya Group Bhd said its lawsuit over properties promised as payment for construction work on a Kuala Lumpur mixed-development project will return to the High Court for a full trial. (The Edge)
ASM Automation Group Bhd, which debuted on the ACE Market about 10 months ago, has seen the emergence of Chong Ming Hang as its new substantial shareholder with a 19% stake.(The Edge)
Information technology (IT) company Cloudpoint Technology Bhd is planning to acquire another IT firm for RM16.8 million as part of its plan to expand product offerings. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.906393 | 3.937909 |
| EUR | 4.615899 | 4.620742 |
| CNY | 0.575817 | 0.576441 |
| HKD | 0.498757 | 0.502285 |
| SGD | 3.083126 | 3.105011 |