Market Sentiment Turning Positive Market Review Malaysia: The key index slid as Consumer Products & Services heavyweights, namely Petronas Dagangan, dampened sentiment on the local front. Market Sentiment Turning Positive Market Review Malaysia: The key index slid as Consumer Products & Services heavyweights, namely Petronas Dagangan, dampened sentiment on the local front. Meanwhile, Malaysia's central bank reported earnings at a 27-year high, driven by stronger investment returns from its international reserves. Global markets: Wall Street rallied, driven by optimism that President Trump might scale back some of his proposed tariffs, potentially helping the US avoid an economic slowdown. "Magnificent 7" tech stocks posted its strongest rally in two months, with Tesla Inc. skyrocketing 11.9% and Nvidia Corp. added 3.2% The Day Ahead US: The rally in the "Magnificent Seven" reflects hopes that the U.S. may avoid an economic slowdown, as reports suggest tariffs could be narrower in scope or delayed. This has eased some trade war fears. However, investors remain cautious about inflation and recession risks ahead of Trump's April 2 tariff deadline. This week, traders will closely monitor (i) Flash Manufacturing PMI, (ii) Flash Services PMI, (iii) U.S. economic growth, (iv) Unemployment Claims, and (v) Core PCE Index. In the commodities market, Brent Crude edged higher toward USD72 per barrel, while Gold retreated further to USD3,012 an ounce. CPO prices traded flat, hovering around RM4,339. MY: Tracking the US markets, the KLCI is set to open higher, with Technology stocks in focus. Meanwhile, Venezuela's oil supply is expected to be revoked soon and the US President could be imposing 25% tariffs on oil trading partners dealing with Venezuela. Thus, with US-Iran sanctions and OPEC+ production cuts, this may lead to a higher crude oil price environment. Besides, we see trading opportunities in stocks linked to the nation's automotive brands, benefiting from March's higher vehicle sales and anticipating that Hari Raya in April will drive increased delivery turnover for backlogged orders. FBMKLCI Technical Outlook The key index continued to trade below the EMA bands, with technical indicators showing a mixed signal at the current juncture; MACD histogram expanded positively, while the RSI remained below 50. Resistance is anticipated around 1,518- 1,523 while support is set at 1,483-1,488. Company Briefs The Court of Appeal has recorded a consent judgment between the federal government and AwanBiru Technology Bhd 's (AWANTEC) unit Prestariang Skin Sdn Bhd, where the government has agreed to pay Prestariang RM201.477m within three months and withdraw its appeal for a stay of the High Court's decision last year that ordered it to pay RM231.55m. This is over the termination of the government's RM3.5bn National Immigration Control System (SKIN) project. (The Edge) Datuk Keh Chuan Seng has resigned as executive chairman of Ge-Shen Corp Bhd (GESHEN), Tex Cycle Technology (M) Bhd (TEXCYCL) and K Seng Seng Corp Bhd (KSSC), citing personal circumstances. Keh, 53, also stepped down as non- independent non-executive deputy chairman of Agricore CS Holdings Bhd (AGRICOR) for unforeseen personal reasons. His resignation coincided with a sharp drop in share prices across these companies linked to him, triggering selling pressure in the market on Monday. (The Edge) IJM Corp Bhd (IJM) remains positive about its business outlook and the potential to secure tendered projects despite recent online allegations casting a pall over the company. Its chief financial officer Datuk Edward Chong Sin Kiat said IJM's official response should provide assurance to potential clients. "I'm sure our clients know what is true and what is not. We remain hopeful [of securing the tendered projects]. We are bidding alongside our competitors, and everyone is putting in a good bid. Let's see what the outcome is," Chong said. (The Edge) Oasis Harvest Corp Bhd (OASIS) said it will ensure all future corporate exercises align with best practices and prioritise shareholder interests, after it was reprimanded by Bursa Malaysia in relation to the way it handled a now-scrapped rights issue proposal. Oasis Harvest said the May 2023 rights issue exercise proposal, which sought to raise up to RM17.24m before a downsizing and subsequent cancellation, "occurred before the company's rebranding and transformation from Dolphin International Bhd". It was also under the previous management, the company said. (The Edge) Axiata Group Bhd 's (AXIATA) shareholders have approved the proposed merger between PT XL Axiata and PT Smartfren Telecom Tbk. The merger was approved by shareholders at the group's EGM through polling, and the results have been submitted to Bursa Malaysia in compliance with regulatory requirements. (The Edge) Capital A Bhd (CAPITALA) said the cut-off date to dispose of its short-haul aviation business worth RM6.8bn to its sister company AirAsia X Bhd (AAX) has been extended for a second time, to May 30. The original cut-off date of January 25 was previously extended to March 25, before this latest two-month extension. "This is to allow additional time for the company and AAX to, amongst others, obtain the approval and/or consent of the relevant authorities, financiers/lenders and/or third parties as well as for AAX to finalise the definitive terms with the identified investors in relation to AAX's proposed pre-completion private placement exercise," Capital A said. (The Edge) AME Real Estate Investment Trust (AMEREIT) has entered into a deal to acquire three industrial properties from its sponsor, AME Elite Consortium Bhd (AME), for RM100.8m. The properties are located in AME Elite's industrial parks - one of them in i-Park @ Senai Airport City (priced at RM39.3m) and the other two in i-TechValley at Southern Industrial Logistic Clusters (RM30.8m each). (The Edge) Construction outfit Nestcon Bhd (NESTCON), through its wholly-owned subsidiary Nestcon Infra Sdn Bhd, has secured a RM100m contract from Alam Casana Sdn Bhd for earthworks covering an area of 242 acres in Mukim Kerling, Hulu Selangor. The project is part of the first-phase development within the 800-acre Beringin High-Tech Auto Valley ecosystem, which is anchored by the 200-acre Chery Smart Auto Industrial Park in Lembah Beringin. (The Edge) Construction services firm Advancecon Holdings Bhd (ADVCON) said it has secured a RM56.64m contract for infrastructure works at Ladang Londah in Gemas, Negeri Sembilan. Under the contract from Fraser & Neave Holdings Bhd (F&N), Advancecon will be responsible for site clearing, earthwork, erosion control, water reservoir embankment and other works, the company said. (The Edge) Borneo Oil Bhd (BORNOIL) said its indirect subsidiary Borneo Oil (Sabah) Sdn Bhd (BOS) has secured a licence from Petroliam Nasional Bhd (Petronas) as a Sabahan vendor. The group said BOS is expanding its operational base to offer comprehensive oil and gas services through partnerships with experienced technical service providers in the oil and gas services and equipment sector. In line with this, BOS has signed an agreement with Intercontinental Strait Energy Technology Co Ltd (SETC) to jointly bid for projects involving drilling, completion, stimulation and geological consultancy, the group said. (The Edge) Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has secured a contract from Vestigo Petroleum Sdn Bhd to undertake an engineering, procurement, construction, installation and commissioning project. MHB's subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), will be responsible for fabricating two wellhead platforms - Irong Timur and Berantai East - each weighing 1,500 metric tonnes. Once completed, these facilities will be deployed offshore Peninsular Malaysia to support the field development plans of Vestigo, a wholly-owned unit of Petronas Carigali Sdn Bhd. (The Edge) Catcha Digital Bhd (CATCHA) has proposed to acquire a 92.5% stake in financial software company Theta Service Partner Sdn Bhd for RM34.96m, as part of the company's expansion into enterprise IT solutions and to diversify its revenue beyond digital media advertising. The company said its wholly-owned subsidiary Catcha Theta Holdings Sdn Bhd has signed an agreement with Theta Service vendors to acquire the controlling stake in the company. (The Edge) ICT Zone Asia Bhd (ICTZONE), which is in the midst of being transferred from the LEAP Market to the ACE Market, reported a net profit of RM4.42m for the second half ended Jan 31, 2025, down 16.8% from RM5.32m a year earlier. The decline was mainly due to higher finance and staff costs from additional headcount to support business expansion, along with one-off expenses related to its proposed transfer of listing, the technology financing solutions provider said. Revenue for the six-month period rose 24.8% year-on-year to RM70.1m from RM56.2m, driven by growth in the technology financing and trading segments, supported by renewed and new contracts. (The Edge) JPMorgan Chase and Walmart (WMT) are partnering to enhance payment processing for merchants on Walmart's marketplace platform, enabling sellers to manage cash flow using JPMorgan's systems. Walmart, which hosts over 100,000 sellers and 700 million items, saw marketplace sales grow 40% in Q4. With embedded finance gaining traction, over $2 trillion in transactions are expected to shift to marketplace platforms. JPMorgan, already working with 20 clients in embedded finance, sees this as a growth opportunity. While the service is currently U.S.-only, discussions for expansion into Europe and other regions are underway. (Investing.com) Boeing (BA) is seeking to withdraw its guilty plea in a criminal case accusing it of deceiving regulators before two fatal 737 MAX crashes, according to the Wall Street Journal . The company aims for more lenient treatment from the Justice Department, which is reviewing pending cases. Negotiations are ongoing, with proposed changes to be presented by April 11, including whether Boeing can avoid hiring an external compliance monitor. (Investing.com) Source: PublicInvest Research - 25 Mar 2025.