Malaysia Market Review: The FBM KLCI climbed 0.5% on Monday to close at 1,585.6, lifted by broad-based buying in selected heavyweights alongside stronger regional performance. Market breadth was positive, with 555 gainers outpacing 429 losers. Sector-wise, Utilities (+1.5%), Industrial Products (+1.1%) and REITs (+0.8%) led the gains, while Energy (-0.4%) and Healthcare (-0.4%) were the main laggards.
Global Markets Review: Wall Street moved higher on Monday, with the Nasdaq (+0.5%) closing at a fresh record high, while the S&P 500 (+0.2%) and Dow Jones (+0.2%) registered smaller gains. Sentiment was supported by expectations of a more aggressive Fed easing cycle after weaker US labour market data last week. In Europe, equities rose as investors looked past political uncertainty in France, where Prime Minister Francois Bayrou lost a no-confidence vote. Asian markets mostly rallied, with Japan’s Nikkei 225 surging 1.5%, Hong Kong’s Hang Seng Index up 0.9%, and China’s Shanghai Composite gaining 0.4%.
Market Outlook. Investors remain focused on the Fed’s rate-cut trajectory. Following the weaker-than-expected August jobs report, futures now imply an 88% probability of a 25-bp cut at the September FOMC meeting, with a 12% chance of a larger 50-bp move, according to CME FedWatch. The US CPI release on Thursday will be closely watched, with a softer reading likely to reinforce expectations of a more aggressive easing cycle. Domestically, we expect some volatility in the FBM KLCI, tracking Wall Street’s swings, though expectations of lower US interest rates should underpin the Ringgit and support capital flows into local markets. That said, a stronger-than-expected US inflation reading could rekindle stagflation concerns and weigh on sentiment. Regionally, Indonesia is likely to see heightened volatility after President Prabowo removed former Finance Minister Sri Mulyani in a Cabinet reshuffle following weeks of protests.
Sector focus. We favour selective consumer, construction, technology and renewable energy counters, which stand to benefit from pre-Budget 2026 positioning ahead of the tabling on 10 October. The Budget is expected to build on the foundations of earlier MADANI initiative, while structural drivers such as data centre expansion and the energy transition should provide additional medium-term support.
Technical Commentary: The FBM KLCI closed higher on Monday following early session strength. Indicators remained mix, with the MACD Line ending the day below the Signal Line, while the RSI floated above 50. Immediate resistance is located at 1,610. Support is envisaged at around 1,550
Company News (source: various)
Malaysian Resources Corp Bhd is buying the EPF's 80% stake in Bukit Jalil Sentral Property Sdn Bhd (BJSP) for RM1.58 billion in cash.
Gamuda Bhd and Samsung C&T Corphave been selected by the Australian government as the preferred contractor for the last major contract in Stage 1 of the Marinus Link, an undersea and underground electricity and data interconnector between the states of Tasmania and Victoria.
Gamuda Bhd unit has awarded piling company Econpile Holdings Bhd a RM53.99 million subcontract in relation to the LRT Mutiara Line project in Penang.
Affin Bank Bhd has appointed Hanif Ghulam Mohammed as the new CEO of its investment banking arm, Affin Hwang Investment Bank Bhd, with immediate effect.
Inta Bina Group Bhd unit has won a RM66.52 million contract to build 154 houses in a gated and guarded project in Hulu Langat, Selangor for Eco Majestic Development Sdn Bhd.
Utilities engineering firm Jati Tinggi Group Bhd has secured a subcontract valued at RM42.9 million for underground cable works from Worktime Engineering Sdn Bhd for 11kV underground cable works in the North and Selangor zones.
Enra Group Bhd has secured a contract from Petronas Carigali Sdn Bhd to undertake engineering and construction works at the Terengganu Crude Oil Terminal (TCOT).
Cash company Pimpinan Ehsan Bhd said its renewable energy arm, reNIKOLA Holdings Sdn Bhd, has been shortlisted to develop two large-scale solar projects in Kemaman, Terengganu under the government’s LSS5+ programme, with a combined capacity of 400 MWac (618 MWp).
Fire protection solutions maker Unique Fire Holdings Bhd has formed a JV with Singapore-based wholesale trader Z10 Pte Ltd and Malaysian electrical components firm E&E Electrical Solutions Sdn Bhd for the sale of emergency lights and signage.
Tham Kin-On, the group chief executive officer of loss-making agricultural company Greenyield Bhd, is facing a bid to remove him by a group of seven shareholders, three of whom are his own uncles including Tham Chong Sing, Tham Foo Choon, and Tham Fau Sin.
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 | 4.203518 | 4.236873 |
EUR | 4.944847 | 4.949827 |
CNY | 0.591811 | 0.592408 |
HKD | 0.539572 | 0.543369 |
SGD | 3.274410 | 3.297453 |