Opening Daily Highlight
Mixed
KLCI Cools as Large Caps Unwind
Fri, 19-Sep-2025 08:06 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI snapped its two-day rally to close 0.8% lower, as investors rotated out of large caps, while interest shifted into lower liners. Market breadth turned negative for the first time in seven sessions, with 509 losers outpacing 502 gainers. Sector-wise, Utilities (-1.0%), Finance (-0.8%) and Healthcare (-0.7%) were the main laggards, while Technology (+0.7%), Property (+0.6%) and Telecommunications (+0.6%) led gains. After three sessions of net selling, local institutions re-emerged as net buyers, offset by foreign investors who turned net sellers.

 

Global Markets Review: Wall Street climbed on Thursday, with all three major indices closing at record highs. The Nasdaq gained 0.9% after Nvidia announced a USD5bn investment in struggling chipmaker Intel. Gains were broad-based, with the Russell 2000 jumping 2.5% to notch its first record close since 2021. On the macro front, US initial jobless claims dropped by 33,000 to 231,000 in the week ended 13 September, the largest fall in almost four years, suggesting labour market resilience and fuelling optimism over the economy. In Europe, the STOXX 600 rallied 0.8% as the Bank of England held its main lending rate unchanged at 4%. It was a mixed bag in Asia as the Japan’s Nikkei 225 gained 1.2%, South Korea’s KOSPI up 1.0% while China’s Hang Seng index fell 1.3% amid regulatory concerns on Nvidia chip purchases.

 

Market Outlook. Malaysian equities are likely to trade with a constructive but selective bias in the near term. The Fed’s rate cut has eased global financial conditions, bolstering risk appetite and potentially reviving foreign fund inflows into ASEAN markets, while the ringgit’s stability and recovering domestic demand add support. Global investors will also be watching the Bank of Japan’s policy decision today. Any tightening could lift the yen and pressure global yields, while a dovish hold would keep liquidity supportive. Attention will then turn to the Budget 2026 announcement in October for further policy clarity.

 

Sector focus. The Technology sector is expected to remain in the spotlight, with gains in US tech giants lifting local tech sentiment. We remain constructive on Utilities and Renewable Energy, supported by ongoing reforms and policy measures that are expected to drive sustained growth in the power segment.

 

Technical Commentary: The FBM KLCI formed a bearish marubozu candle in Thursday’s trading session. Indicators remained mix, with the MACD Line ending the day below the Signal Line, while the RSI floated above 50. The next resistance is located at 1,630. Support is envisaged at around 1,570.

Company News (source: various)

Eco World Development Group Bhd said on Thursday that it has exceeded its sales target for the financial year ending Oct 31, 2025 (FY2025), after reporting a more than 25% rise in third quarter (3Q) earnings.

 

Plantation outfit United Malacca Bhd reported that its first-quarter net profit more than doubled year-on-year, driven by firmer crude palm oil and palm kernel prices as well as lower production costs.

 

Land & General Bhd plans to launch its maiden industrial park at its 2,500-acre Sungai Jernih Estate in Kerling, Hulu Selangor next year, with the development expected to span over a decade.

 

Sime Darby Property Bhd is exploring more opportunities beyond its core property development, investment and management businesses, building on its recent move into data centres and continued expansion into commercial and industrial properties.

 

FBG Holdings Bhd, formerly known as Fajarbaru Builder Group Bhd, has proposed a rights issue of up to 836.6 million shares with free warrants, to raise as much as RM150.6 million.

 

Pipe-and-valve maker Pantech Group Holdings Bhd has been slapped with capital gains tax amounting to RM6.76 million by the Inland Revenue Board (IRB).

 

Binastra Corp Bhd posted a 24.3% rise in net profit for the second quarter ended July 31, 2025 (2QFY2026), supported by higher contributions from its core construction segment.

 

Property developer Magna Prima Bhd’s largest shareholders, Datuk Seri Bryan Wong Sze Chien and managing director Eddy Seah Ley Hong, have triggered a conditional mandatory takeover offer at 73 sen per share after their stake in the company rose to 35.73%.

 

Practice Note 17 (PN17) company KNM Group Bhd has secured an interim order from the Court of Appeal restraining all existing and future legal actions against the group, pending disposal of its main appeal fixed for hearing in May next year.

 

MClean Technologies Bhd said it is not aware of any corporate development, rumour, or other reason that could explain the sharp rise in its share price and trading volume on Thursday.

Sentiment: Neutral
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