Market Review & Outlook
Malaysia Market Review: The FBM KLCI edged up 0.21 points to close at 1,603.55 yesterday, while the broader market outperformed as the FBM Small Cap gained 0.82%. Market breadth was positive, with 572 advancers outpacing 455 decliners. Sector-wise, Plantation (-0.53%) and Telecommunications & Media (-0.37%) were the key laggards, while buying interest was more apparent in Property (+1.37%) and Healthcare (+1.26%) names. On the fund flow, local institutions extended their net buying position while foreign investors persisted as net sellers.
Global Markets Review: US equity markets finished lower on Tuesday, with the Dow Jones, S&P 500 and Nasdaq falling 0.19%, 0.55% and 0.95%, respectively, snapping a three-day record-high streak. Sentiment softened after Fed Chair Jerome Powell noted that the central bank must balance persistent inflation concerns against signs of a weakening labour market when calibrating future rate decisions. He also remarked that equity valuations remain “fairly highly valued”. US PMI data signalled further moderation in US business activity as it slipped to 53.6 this month from 54.6 in August. European stocks touched their highest in more than a week, lifted by a rally in luxury goods companies on higher US spending and gains for wind energy stocks after a court ruled that Orsted could restart work on a US offshore project. Meanwhile, major Asian stock markets displayed mixed trend.
Market Outlook. We expect the KLCI to open softer today, in tandem with the overnight pullback on Wall Street where major indices eased as profit-taking in technology counters and cautious remarks from Fed Chair Jerome Powell may weigh on sentiment. Regionally, Asian markets may see a more subdued tone following the US weakness, while on the domestic front, investors will digest Malaysia’s August inflation print released yesterday for policy signals. Attention remains on upcoming US data releases: initial jobless claims on 25 Sep and the core PCE inflation on 26 Sep for further clues on the Fed’s rate trajectory, alongside the lead-up to Budget 2026 on 10 Oct which is likely to shape local sectoral sentiment.
Sector focus. We expect Malaysian equities to trade with a more cautious tone today, particularly in the technology space, following the pullback on the Nasdaq as profit-taking emerged in heavyweight technology names. Meanwhile, we believe interest may continue to centre on the construction, consumer, and renewable energy sectors in the near term, underpinned by potential positive sentiment ahead of Budget 2026 on 10 Oct.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI paused its short-lived momentum after closing marginally lower on Monday. 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)
Apollo Food Holdings Bhd reported a 34.3% decline in net profit for the first quarter ended July 31, 2025 to RM6.36 million, from RM9.68 million a year earlier, on lower export sales and higher operating costs.
IGB REIT has proposed a RM5 billion medium-term note programme via its unit IGB REIT MVS Capital Bhd, after lodging the required documents with the Securities Commission Malaysia.
Southern Cable Group Bhd's non-independent non-executive director Fawiza Faiz has ceased to be a substantial shareholder of the Penang-based cables and wires manufacturer.
New ACE Market entrant JS Solar Holding Bhd is targeting more than 300MW of potential solar projects in Sabah as it seeks a larger share of Malaysia’s solar engineering market.
OM Holdings Ltd, dual-listed in Australia and Malaysia, has closed the sale of a 60% stake in its Chinese smelting unit, OM Materials (Qinzhou) Co Ltd, to Shaanxi Sinian Metal & Mining Co Ltd for about RM70.8 million.
Kuchai Development Bhd has proposed a special dividend of 44.8 sen per share, to be followed by the company's voluntary withdrawal from Bursa Malaysia.
TXCD Bhd, formerly Ageson Bhd, has secured a RM75.86 million contract in Sepang after mutually terminating an earlier deal with Mateen Group.
Chin Hin Group Property Bhd is disposing of two freehold industrial plots in Kampung Kangkar Tebrau, Johor Bahru for RM19.3 million cash to Miroad Rubber Industries Sdn Bhd.
Edelteq Holdings Bhd plans to raise up to RM19.73 million through a private placement of up to 10% of its shares, to be used for working capital and to repay bank borrowings.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.212894 | 4.246402 |
EUR | 4.925348 | 4.934954 |
CNY | 0.592662 | 0.593823 |
HKD | 0.542079 | 0.546393 |
SGD | 3.250847 | 3.276896 |