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Market Highlights
Market Outlook
Tue, 14 Apr 2026 07:43 am
Market Outlook - World Cup 2026 “Fever”: Expect Softer Trading

• FBM KLCI declined in six of the last nine World Cups, with average return of about -2.0% during the tournament.
• Trading activity typically softens, with five of the last seven events recording lower Bursa Malaysia volume.
• Market impact tends to be temporary, with post-World Cup direction remaining mixed.
• Near-term volatility may rise amid May seasonality, World Cup lull and Iran-related geopolitical risks.
• We introduce our FBM KLCI year-end target of 1,787, while favouring structural growth themes in AI and data centres, complemented by tactical small-cap exposure for alpha generation.
• Top picks: ViTrox, Mi Technovation, MSC, Frontken, Aurelius Technologies, Tenaga, EG Industries, Seni Jaya Corporation, Southern Score Builders and Ramssol.

Economic Update
Mon, 13 Apr 2026 07:58 am
Malaysia Labour Market - Resilience amid rising headwinds

The unemployment rate held at 2.9% in February, supported by firm domestic activity.
Policy support for consumption, steady tourism activity, sustained E&E demand and broader ICT investments should underpin hiring across services and manufacturing.
Prolonged supply chain disruptions from the Middle East conflict, alongside spillovers to consumer spending, could weigh on job creation.
We expect labour market conditions to remain broadly resilient, with the unemployment rate averaging 3.0% in 2026 (2025: 3.0%).
We expect BNM to keep the OPR at 2.75%, while monitoring spillovers from elevated energy prices and domestic demand conditions.

Economic Update
Fri, 10 Apr 2026 07:13 am
Malaysia Industrial Production - Geopolitical tensions cloud near-term outlook

• The Industrial Production Index (IPI) moderated to an eight-month low of +3.1% YoY in February (Jan: +5.9%), below consensus of +5.0%, led by softer manufacturing output.
• Despite moderation in the export-oriented cluster, E&E remained resilient at +12.9% YoY (Jan: +15.2%).
• While supply disruptions in key industrial inputs could weigh on the E&E segment, partial substitutability should keep the overall impact contained for now.
• Geopolitical conditions remain fluid, with risks to growth tilted to the downside.
• We maintain our 2026 manufacturing growth forecast at +4.5% YoY (2025: +4.5%) and GDP forecast at +4.7% (2025: +5.2%).

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