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Market Highlights
Economic Update
Fri, 04 Sep 2026 07:32 am
BNM MPC Meeting - Prospect of a 25-bp rate hike in 2027    

• BNM maintained the OPR at 2.75% at its September MPC meeting, in line with our view.
• The policy tone remained positive, with 2027 growth driven by the external sector.
• BNM flagged the limited spillover of external sector strength to wages, underscoring its caution over modest domestic demand despite strong headline economic growth.
• We see the removal of the word “appropriate” from the MPS closing paragraph as a shift towards a mildly hawkish stance.
• We expect the OPR to stay on hold at 2.75% in 2026, followed by a 25-bp hike in 2027.

Market Outlook
Thu, 03 Sep 2026 07:22 am
Market Outlook - DON’T FEAR THE BOND SELL-OFF

• US Treasury yields near multi-year highs as fiscal concerns, persistent inflation, geopolitical risks, AI-related corporate borrowing and a more hawkish Fed outlook drive the bond sell-off.
• Equity valuations remain under pressure, particularly Technology, growth, REITs and high-dividend stocks, but we view the weakness as a correction rather than the start of a structural bear market.
• Malaysia’s fundamentals remain resilient, supported by 6.0% 2Q26 GDP growth and 38.0% July export growth. We expect domestic earnings to remain relatively intact despite global volatility.
• Watch key technical supports for stabilisation and buy the dip selectively. We maintain our Barbell Strategy, favouring Technology, Construction, Utilities and selected small caps with strong earnings visibility and structural growth.
• Maintain our year-end KLCI target of 1,770.

Market Outlook
Fri, 21 Aug 2026 08:35 am
Market Strategy - KLCI 50: A Broader Benchmark, Creating New Alpha

• KLCI to expand from 30 to 50 constituents in two phases (Dec-26 and Jun-27), creating a broader and more diversified benchmark.
• The current KLCI remains highly concentrated, with Banks and Utilities accounting for 43.1% and 16.4% of the index respectively, while Technology has no representation.
• Technology and Construction should be the clearest sector beneficiaries from broader benchmark representation.
• The two-stage implementation should create an extended period of index-related positioning rather than a single rebalancing event, with the 20 new constituents introduced at 50% of eventual weights in Dec-26 and reaching full weight in Jun-27.
• We favour fundamentally strong potential entrants where index inclusion is an additional catalyst, rather than treating index eligibility as the investment thesis.
• Key risks are front-running, valuation premiums and buy-the-rumour/sell-the-fact dynamics. We maintain our year-end KLCI target of 1,770.

Technical Calls
Stock Research
Derivatives Market Performance
Sector Reports
Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.026714 4.058098
EUR 4.686569 4.694914
CNY 0.601184 0.601664
HKD 0.513452 0.517453
SGD 3.173308 3.198167
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