Malaysian Market Review: The FBM KLCI rose (+0.25%) to 1,712.67 on Friday as bargain hunting took course after several weak sessions. Market breadth turned positive with 631 gainers against 539 decliners. Sector-wise, Technology (+3.00%), Energy (+2.01%), and Industrial Products (+1.63%) led gains, while REIT (-0.79%) and Consumer (-0.39%) were the main laggards.
Global Markets: U.S. equities closed marginally higher on Friday, with the Dow Jones Industrial Average (+0.58%), S&P 500 (+0.37%) and Nasdaq Composite (+0.19%) advancing thanks to a strong corporate earnings season (Reuters). European equities ended higher, with the STOXX Europe 600 (+0.73%) supported by stronger optimism for technology stocks (Reuters). The stronger optimism followed French President Emmanuel Macron’s comments that the French government will be investing EUR1.5bn into the Technology sector (Reuters). Asian markets generally closed higher, led by gains in the Nikkei 225 (+2.68%), Shenzhen Index (+2.30%), and Hang Seng (+0.86%). Japan’s core inflation slowed more than anticipated in April, reaching its lowest level since March 2022 and reducing expectations for further Bank of Japan rate hikes.
In other news, the Hormuz conflict shows no signs of stopping as U.S. President Donald Trump said on Sunday that he had instructed his representatives not to rush into any deal with Iran, tempering hopes of an imminent breakthrough in the three-month-old conflict. Meanwhile, Iran’s top negotiator, Parliament Speaker Mohammad Baqer Qalibaf, told Pakistani army chief Asim Munir during talks in Tehran that the U.S. was not an honest party in the negotiations and that Iran would not compromise on its national rights (Reuters).
Market Outlook. Positive momentum in technology-related stocks could continue to lift market sentiment, tracking gains in global tech names. However, upside may remain measured as investors monitor external risks including global rate expectations, corporate earnings momentum, and ongoing geopolitical developments. On the domestic front, buying interest in the FBMKLCI may stay focused on fundamentally strong sectors such as Technology, while defensive sectors could see more selective interest.
Sector focus. We favour Utilities on continued data centre-related investments, while remaining selective on Technology amid ongoing AI-related volatility. Meanwhile, Energy sentiment may soften following the recent pullback in crude oil prices.
FBMKLCI Technical Outlook
Technical Commentary: Although the FBM KLCI has retreated in recent sessions amid cautious market sentiment, we continue to view the index positively as its broader upward trend remains intact. From a technical standpoint, the recent pullback and formation of several bearish candlesticks may pave the way for a Bullish Harami pattern, suggesting that selling pressure could be easing. This may provide an early signal of a potential near-term rebound in the benchmark index.
Company News
Asia Digital Engineering (ADE), the maintenance, repair and operations (MRO) subsidiary of Capital A Bhd, has secured a US$100 million (RM396.6 million) financing facility from QNB Group. (The Edge)
Alliance Bank Malaysia Bhd remains cautiously optimistic for the financial year ending March 31, 2027 (FY2027) despite persistent external uncertainties, after delivering another year of record earnings in FY2026. (The Edge)
Farm Fresh Bhd said it may raise prices for select products in Malaysia and Singapore, even as earnings hit a new record-high in the recently-ended financial year. (The Edge)
Underground utilities and substation engineering company Critical Holdings Bhd has secured a RM152.59 million engineering, procurement and construction contract for a cleanroom facility at the Kulim Hi-Tech Park in Kedah. (The Edge)
Oil and gas producer Hibiscus Petroleum Bhd swung to a net profit for the third quarter ended March 31, 2026 in the absence of a RM167.3 million one-off, non-cash deferred tax charge tied to the UK’s Energy Profits Levy (EPL) recognised in the corresponding quarter last year. (The Edge)
Eonmetall Group Bhd founder and largest shareholder Datuk Goh Cheng Huat has proposed to privatise the steel products manufacturer via a selective capital reduction and repayment exercise at 40 sen per share. (The Edge)
CSC Steel Holdings Bhd posted an 8% rise in first-quarter net profit as the flat steel manufacturer recorded higher sales volume and production costs fell. (The Edge)
Taliworks Corporation Bhd posted a 14.4% decline in first-quarter net profit as weaker margins from its construction business and higher losses from its waste management associate offset stronger revenue growth. (The Edge)
Malaysia Smelting Corporation Bhd reported a more than fivefold jump in its first-quarter net profit, driven by soaring tin prices and stronger performance from both its mining and smelting segments. (The Edge)
PBA Holdings Bhd, the water utility operator for Penang state, expects stronger revenue growth from the third quarter of this year, supported by higher water tariffs and rising industrial demand amid the state’s rapid industrial expansion. (The Edge)
Heavy machinery specialist Favelle Favco Bhd has secured two contracts worth a combined RM90.6 million for the supply of tower cranes in Australia. (The Edge)
Retirement Fund Inc, better known as Kumpulan Wang Persaraan Diperbadankan (KWAP), has emerged as a substantial shareholder in AEON Co (M) Bhd after acquiring more than 1.56 million shares in the company. (The Edge)
Stronger contributions from its pawnbroking services business pushed Well Chip Group Bhd to a record-high quarterly profit for the first three months of this year. (The Edge)
AME Elite Consortium Bhd posted a net profit of RM283.97 million for the financial year ended March 31, 2026 (FY2026), its highest since the construction and property group's listing on Bursa Malaysia in 2019. (The Edge)
Berjaya Food Bhd posted another loss in the recently-ended quarter as costs and expenses continued to outsize its marginal revenue growth. (The Edge)
Ann Joo Resources Bhd has scrapped the proposed disposal of its upstream steel business to Southern Steel Bhd, instead inking a deal with its largest shareholder, steel magnate You Zhenhua’s Singapore-based Green Esteel Pte Ltd. (The Edge)
Paramount Corp Bhd’s first-quarter net profit came in flat as revenue fell to the lowest in nearly five years due to fewer ongoing projects and the absence of new launches. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.952620 | 3.984418 |
| EUR | 4.602737 | 4.607520 |
| CNY | 0.583458 | 0.584086 |
| HKD | 0.504699 | 0.508269 |
| SGD | 3.089871 | 3.111658 |