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Market Highlights
Economic Update
Fri, 06 Mar 2026 07:30 am
BNM MPC Meeting - Stable OPR outlook despite rising external risks

• BNM maintained the OPR at 2.75% in its March MPC meeting, in line with expectations. 
• The policy tone turned more cautious on the global economic outlook amid the Middle East conflict, while maintaining a sanguine outlook on domestic growth and inflation.
• We see no urgency for BNM to ease, barring an unexpected deterioration in growth below BNM’s forecast.   
• Given the sanguine growth outlook and benign inflation environment, we expect BNM to maintain the OPR at 2.75% through 2026.

Economic Update
Thu, 05 Mar 2026 07:31 am
Economics & Market Outlook - Buy the Dip on Geopolitical Noise  

• We expect Brent price to normalise after the recent spike, keeping inflation modest at 1.6–1.9% (2026F: 1.8%).
• While geopolitical tensions remain, sustained E&E demand should support external growth, while stronger tourist arrivals, continued policy support and robust investment underpin domestic demand. We maintain our 2026 GDP forecast at +4.7% (2025: +5.2%).
• Market weakness should be viewed as an opportunity for gradual accumulation of fundamentally sound names. Our preferred picks are MSC (BUY, TP: RM2.14), ISF (BUY, TP: RM0.55), AGX (BUY, TP: RM0.62), & ATECH (BUY, TP: RM1.00).

Economic Update
Mon, 23 Feb 2026 08:00 am
Malaysia External Trade - Cautious optimism amid fluid trade dynamics

Exports surged to a three-year high of +19.6% YoY in January (Dec: +10.2%), well above consensus, while imports moderated to +5.3% (Dec: +9.5%). The trade surplus narrowed slightly to RM21.4bn (Dec: RM22.1bn).

Manufacturing (+22.3% YoY; Dec: +13.4%) led the expansion, supported by an acceleration in E&E. Mining and agriculture provided further support to the overall growth.

We view the slowdown in capital goods imports (+2.3% YoY; Dec: +27.1%) as a temporary breather, with infrastructure rollout and data centre expansion keeping investment momentum firm in 2026.

The US Supreme Court ruling against Trump’s IEEPA tariffs is unlikely to materially alter the trade landscape, as the administration shifts toward alternative tariff pathways.

Trade momentum should remain supported by steady global growth and semiconductor demand, although tariff risks, geopolitical tensions and a firmer ringgit could pose headwinds. We maintain our 2026 export growth forecast at +4.8% (2025: +6.4%), pending greater clarity on tariff developments.

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Currency Buy Rates (RM) Sell Rates (RM)
USD 3.932397 3.958139
EUR 4.583468 4.586119
CNY 0.572032 0.572355
HKD 0.502650 0.505949
SGD 3.080534 3.100920
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