Opening Daily Highlight
Mixed
US Political Gridlock in Spotlight
Wed, 01-Oct-2025 07:36 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+0.1%) closed flattish as investors tread cautiously amid looming US political and tariff risks. Market breadth was broadly balanced, with 558 gainers against 549 decliners, while the lower liners also underperformed. Sector-wise, Utilities (+2.0%) led the advance, while REIT (-0.7%) emerged as the top laggard.

 

Global Markets Review: US Markets closed out the third quarter on a firm footing, defying September’s reputation as one of the most challenging months for US equities. Wall Street extended gains despite lingering concerns over a potential government shutdown. The Dow Jones rose 0.2%, the S&P 500 added 0.4%, and the Nasdaq advanced 0.3%. A closure would delay the release of this Friday’s key employment report, placing added focus on Tuesday’s JOLTS survey, which showed that US job openings rose marginally in August while hiring declined. In Europe, equities marched higher, supported by broad-based sector gains with the exception of energy and consumer cyclicals. Meanwhile, Asian markets ended mixed as investors assessed China’s latest manufacturing data, which signalled a smaller-than-expected contraction in September. The Hang Seng Index (+0.9%) outperformed, buoyed by optimism that Beijing may roll out additional stimulus measures to bolster the economy.

 

Market Outlook. We expect the FBM KLCI to remain range-bound within the 1,600–1,630 zone, with foreign selling likely to cap gains from local institutional buying. The broader market is expected to stay volatile in the absence of fresh catalysts, while investor sentiment may remain cautious ahead of key US Senate votes, prompting many to stay on the sidelines before re-positioning. Meanwhile, lower liners could continue to drift lower on softer sentiment. On the macro front, attention will turn to the upcoming release of key US economic data this week, including jobless claims, unemployment rate, and PMI. Locally, focus will turn to the upcoming Budget 2026 announcement on 10 October, which is expected to set the tone for policy direction and potential market catalysts.

 

Sector focus. We maintain a positive view on gold-related stocks, underpinned by expectations of further US interest rate cuts and continued safe-haven demand. In addition, we see bargain-hunting opportunities in the construction and renewable energy sectors, which are poised to benefit from policy measures and spending priorities in the upcoming Budget 2026.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI failed to hold on to early gains and closed flat while maintaining bullish momentum above its short-term moving average. Indicators turned positive, with the MACD Line trading above 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)

VS Industry Bhd slipped into the red in the fourth quarter ended July 31, 2025, hit by weaker sales and deferred deliveries amid US reciprocal tariffs. 

 

Mitrajaya Holdings Bhd, whose shares hit a seven-year high on Tuesday, announced that the value of its contract with the Malaysian unit of Australia’s NEXTDC Ltd has increased from RM375.5 million to RM801.8 million following variation orders.

 

An inter-family dispute at Greenyield Bhd has escalated as shareholders aligned with Tham Chong Sing, brother of non-executive chairman Foo Keong, 69, have made a fresh attempt to call an extraordinary general meeting (EGM), this time to remove him and three other independent directors.

 

OSK Holdings Bhd is acquiring a 3.3-acre land in Subang Jaya from Tropicana Corp Bhd for RM44.34 million to develop serviced apartments with an estimated gross development value of RM427 million.

 

Epicon Bhd is diversifying into property development by investing RM72.13 million to form a joint venture with NCT Alliance Bhd to undertake a terraced home project in Batang Kali.

 

Rexit Bhd, a software-as-a-service (SaaS) provider for the insurance and financial services industry, has appointed Jason Yong Qun Yong as its new chief financial officer (CFO), effective Oct 1.

 

Vestland Bhd, which listed on Bursa Malaysia less than three years ago, has received a mandatory takeover offer from its major shareholders at 34 sen per share, or more than a 32% discount to its market price.

 

KIP Real Estate Investment Trust’s trustee, Pacific Trustees Bhd, has completed its acquisition of an industrial property in Bintulu, Sarawak, for a total purchase consideration of RM28.7 million.

 

Sentiment: Positive
Read more details in:

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.

Market Mover
Settlement Rates
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