Market Review & Outlook
Malaysia Market Review: Despite the FBM KLCI easing 0.24% to close at 1,599.66, the broader market showed resilience as the FBM Small Cap and FBM ACE rose 1.00% and 1.13%, respectively, reflecting a shift in investor interest toward small-cap counters. Market breadth was positive, with 601 gainers outpacing 492 decliners. Sector-wise, Property (+1.21%), REIT (+1.03%) and Technology (+0.91%) led gains, while Construction (-0.72%) and Telecommunication & Media (-0.41%) were the main drag. On the fund flow, local institutions continued their net buying position while foreign investors remained as net sellers.
Global Markets Review: In the US, the major indices ended lower, with the Dow Jones, S&P 500 and Nasdaq slipping 0.37%, 0.28% and 0.33%, respectively. Losses were led by AI-linked names such as Nvidia and Oracle, while sentiment over additional rate cuts softened following cautious remarks from Fed Chair Jerome Powell. This dip contrasts with strong gains across most Asian equity markets. The Hong Kong’s Hang Seng gained 1.37% mainly led by tech sector gains as Alibaba rose 9.2% due to news on Ark Invest’s buy in after a four-year absence as CEO Eddie Wu of Alibaba vowed to boost spending on AI infrastructure. Similarly, China’s Shenzhen Component rose 1.8% due to strength in technology and new energy shares. In Europe, the STOXX 600 was down marginally by 0.2%, as gains in commodity and defence stocks were offset by weakness among heavyweight healthcare and luxury counters.
Market Outlook. We expect the FBM KLCI to remain soft today, tracking the overnight pullback on Wall Street. Regionally, sentiment across Asian markets is likely to turn more subdued in tandem with the US weakness. Meanwhile, attention will stay on upcoming US economic data—initial jobless claims on 25 Sept and the core PCE inflation on 26 Sept—for further guidance on the Fed’s policy trajectory. The lead-up to Budget 2026 on 10 Oct is expected to drive local sectoral interest and shape sentiment in specific thematic plays.
Sector focus. We expect Malaysian equities to trade with a more cautious tone today, particularly in the technology sector, mirroring the pullback on the Nasdaq as profit-taking emerged in heavyweight tech 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 printed another bearish candle yesterday, extending its decline with a lower close. 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)
There is a growing vacuum in the top management of CTOS Digital Bhd, with its group chief financial officer (CFO) joining the chief executive officer in departing the credit reporting firm.
Sentral REIT said Teh Wan Wei has stepped down as CEO of the investment trust's manager, Sentral REIT Management Sdn Bhd, with immediate effect to pursue other career opportunities.
NexG Bhd, formerly Datasonic Group Bhd, has unveiled its own digital identity platform known as MyNasional. Separately, the group announced a RM250 million two-phase expansion plan to scale up its passport and secure ID production capabilities.
LB Aluminium Bhd, which is involved in the aluminium and property development businesses, posted a 30.9% year-on-year increase in first-quarter earnings, lifted by stronger contributions from its property segment on the back of higher sales.
Kronologi Asia Bhd saw its net profit drop nearly 35% in the just-ended quarter amid a sharp decline in revenue from Singapore and Philippines.
Generator rental firm Express Powerr Solutions (M) Bhd, which made its ACE Market debut on Wednesday, expects to sustain strong profit margins in the financial year ending Dec 31, 2025 (FY2025), despite changes to its Sabah contract structure this year.
Winstar Capital Bhd is still awaiting approvals from several agencies to fire up its third aluminium extrusion plant in Ijok, Selangor.
Rex Industry Bhd has proposed to change its name to ETA Group Bhd, with the emergence of ETA Industries Sdn Bhd as its new controlling shareholder.
Capital A Bhd is optimistic of completing the disposal of its airline business to AirAsia X Bhd by October, paving the way for the group to seek removal of its Practice Note 17 (PN17) status by year end. Separately, the group’s low-cost airline, AirAsia, has confirmed it is in discussions with a local partner in Vietnam as part of its plan to expand its footprint in Asean.
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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 |