Market Review & Outlook
Malaysia Market Review: The FBM KLCI (-0.49%) closed lower as investors locked in profits after recent gains. Market breadth was negative, with 370 advancers versus 715 decliners, while the broader market also weakened. Across sectors, Technology (+0.87%) outperformed, tracking overnight strength of Nasdaq, while Property (-1.19%) and Healthcare (-1.16%) led the declines.
Global Markets Review: Wall Street ended lower as the AI rally lost momentum, with the S&P 500 (-0.38%), Nasdaq (-0.67%), and Dow Jones (-0.20%) retreating after recent gains. Oracle shares declined as investors grew cautious over the profitability of its AI investments, weighing on sentiment across the tech sector. The ongoing US government shutdown, now in its seventh day, added to uncertainty by delaying key economic data and prompting a flight to safe-haven assets, lifting gold futures above USD4,000/oz for the first time. Meanwhile, a New York Fed survey showing weaker consumer expectations and higher inflation further clouded the policy outlook. In Europe, the STOXX 600 (-0.17%) slipped, dragged by healthcare and banking stocks, though French luxury names rebounded, helping to limit losses after Monday’s political turmoil. Across Asia, markets were mixed. Nikkei (+0.01%) was flat, Hang Seng (-0.67%) eased on profit-taking, while Kospi (+2.70%) advanced.
Market Outlook. The FBM KLCI is expected to remain range-bound in the near term as investors turn cautious ahead of Budget 2026. Weak market breadth suggests ongoing profit-taking, with any pullbacks likely reflecting short-term consolidation. Attention will stay on domestic policy cues leading up to the budget announcement coming Friday. Globally, sentiment is expected to stay volatile and defensive amid the US government shutdown, with investors relying on secondary indicators and central bank guidance to navigate uncertainty. Focus will also be on the Federal Reserve’s September meeting minutes due Wednesday, which may offer fresh signals on the interest rate outlook.
Sector focus. We maintain our view that selective interest will persist in the construction, consumer, and renewable energy sectors, driven by positioning ahead of Budget 2026. We also remain positive on gold-related stocks, underpinned by steady safe-haven demand amid ongoing global macroeconomic uncertainty.
FBMKLCI Technical Outlook
Technical Commentary:
The FBM KLCI closed marginally lower yesterday, forming a bearish candle with a long upper shadow suggesting profit-taking near resistance and the potential for short-term consolidation. Indicators remained positive, with the MACD Line trading above the Signal Line, while the RSI floated above 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.
Company News (source: various)
Bintulu Port Holdings Bhd has obtained High Court approval to proceed with a judicial review against the Inland Revenue Board’s additional tax assessments totaling RM44.2 million for the years 2020 to 2023, with leave granted on Aug 28.
Binastra Corporation Bhd’s subsidiary, Binastra Green Energy, has secured a RM305 million recurrent related-party contract from Bahru Stainless Sdn Bhd for infrastructure works, a 65MWp solar PV system, and a 200MWh battery storage system at BSSB’s Tanjung Langsat plant in Johor.
GDB Holdings Bhd has proposed a private placement of 93.75 million new shares, or about 10% of its issued capital, to independent investors Datuk Seri Chan Leng Sam and Datuk Seri Voon Thien Loong at 41.9 sen per share, raising roughly RM39.28 million for working capital.
KNM Group Bhd’s largest shareholder, MAA Group Bhd, has requested an extraordinary general meeting to vote on the €270 million (RM1.34 billion) sale of KNM’s German unit, Deutsche KNM GmbH, despite Bursa Malaysia’s rejection of the group’s PN17 regularisation plan that includes the sale.
Advancecon Holdings Bhd has won an adjudication against China Communication Construction (ECRL) Sdn Bhd over a payment dispute for the ECRL project, with its unit Advancecon Infra Sdn Bhd awarded RM7 million, less than the RM15.22 million claimed, by the Asian International Arbitration Centre.
Propel Global Bhd is selling a 70% stake in Propel Maxflo Sdn Bhd to Reservoir Link Bhd for RM13.79 million cash and a 4.44% stake in Reservoir Link, valuing the deal at RM17.24 million and raising its interest in Reservoir Link to 14.26% from 9.82%.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.212398 | 4.245900 |
EUR | 4.900605 | 4.905568 |
CNY | 0.591953 | 0.592544 |
HKD | 0.541967 | 0.545762 |
SGD | 3.246560 | 3.269477 |