Malaysian Market Review. The FBM KLCI ended Tuesday 0.43% lower to 1,656.83 on Wednesday, a third straight marginal decline, even as market breadth remained positive with 526 advancers and 450 Decliners. The main laggards were the heavyweight components with Finance (-0.64%) as the standout drag, followed by Construction (-0.96%), REITs (-0.88%) and Property (-0.61%), while the gains were led by Utilities (+1.28%), Technology (+1.01%) and Energy (+0.65%). The weakness was concentrated in the large caps as the FBM Top 100 slipped 0.32%, whereas the FBM Small Cap (+0.17%) and ACE Market (+0.94%) held their ground.
Global Markets: U.S. equities ended Wednesday soft, as the Nasdaq Composite (-0.66%) fell and the S&P 500 (-0.22%) and Dow Jones Industrial Average (-0.03%) also ended their sessions lower, starting off the new quarter in the red, as investors are positioning cautiously ahead of the payrolls data release tomorrow after the release of ISM manufacturing data just yesterday. European boards were also softer, the STOXX Europe 600 (-0.38%) and FTSE 100 (-0.18%) both slipping. Asia was a split picture as Japan's Nikkei 225 (+0.59%) and the Shanghai Composite (+0.44%) advanced while Indonesia's JCI (+0.92%) rebounded, but South Korea's KOSPI (-2.04%) tumbled (CNBC).
Market Outlook. Sentiment remains cautious as US data continues to be published, with the non-farm payrolls releasing later today expected to provide clarity on the Fed’s direction in the foreseeable future as investors remain cautious. At home, the mixed of a lower benchmark, resilient small caps and still-positive breadth continues to point toward selection than direction, suggesting the continued adoption of a selective, defensive stance until conviction returns.
Sector focus. Technology remains the sector to watch, as local chip and EMS continue to track global semiconductor names and may swing depending on this week’s data. Utilities and other defensives may continue to attract a bid as investors continue to lean towards yield and earnings visibility. Energy counters remain another worthy of note as crude prices continue to drop, while the rate-sensitive REIT and property space could stay under pressure until the outlook for rates clears.
Technical Commentary:
The KLCI slid to 1,656.83, and closed on its intraday low, underscoring the lack of buyers into the bell. It now sits beneath every key moving average of the 9-, 20- and 120-day EMAs at 1,672.54, 1,683.51 and 1,692.15 and the 200-day SMA at 1,675.08. The 1,675-1,693 band, is the resistance the index must clear to change the tone, and until it does the bias stays lower. On the downside, the 0.382 retracement at 1,624.68 is the first support to watch, with the 0.5 level at 1,579.44 beneath it.
Company News
Binastra Corp Bhd secured its second data centre contract this year, valued at RM491.16 million following a similar RM503 million win in February. (The Edge)
TXCD Bhd bagged contracts totaling RM57.09 million from Sg Besi Construction Sdn Bhd. The deal includes RM41.43 million for infrastructure and M&E works, and RM15.66 million for material supply, with completion slated for September 1, 2028. (The Edge)
Berjaya Food Bhd officially exited its loss-making Paris Baguette joint venture in Malaysia, selling its 50% stake to partner Paris Baguette Singapore Pte Ltd for a nominal RM1. (The Edge)
Sapura Industrial Bhd sold its leasehold industrial land in Bandar Baru Bangi to Zeito Plastic Components Sdn Bhd for RM42.33 million in cash, which will be used to fund automotive manufacturing expansion, new land acquisitions, and working capital. (The Edge)
Seal Incorporated Bhd is seeking shareholder approval to provide an additional RM58.72 million in corporate guarantees to its 24.55%-owned associate, MSR Green Energy Sdn Bhd (MSRGE), aiding them in securing financing for renewable energy projects. (The Edge)
Epicon Bhd initiated legal action against Ibrahim & Sons Engineering Sdn Bhd to recover RM20.36 million in allegedly unpaid subcontract amounts. (The Edge)
PRG Holdings Bhd was served a RM21.22 million statutory demand by its largest shareholder over advances provided for working capital, risking potential winding-up proceedings. (The Edge)
Disclaimer
The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.
Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.
| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.079748 | 4.111398 |
| EUR | 4.661928 | 4.665651 |
| CNY | 0.601977 | 0.602458 |
| HKD | 0.520350 | 0.523881 |
| SGD | 3.147313 | 3.168788 |