Opening Daily Highlight
Mixed
KLCI Navigates Narrow Range
Thu, 09-Oct-2025 07:49 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (-0.16%) closed lower as investors stayed cautious ahead of Budget 2026, seeking further policy clarity. Market breadth turned negative, with 474 gainers against 612 losers, while the lower liners ended mixed. Across sectors, Energy (+1.47%) outperformed, whereas Technology (-1.23%) lagged due to profit-taking following its recent rally.

 

Global Markets Review: Wall Street advanced, driven by optimism over AI-led growth and expectations of further Fed easing. Minutes from the Fed’s September meeting indicated that additional rate cuts could be on the table for 2025, although policymakers remained divided. The S&P 500 (+0.58%) and Nasdaq (+1.12%) extended gains, while the Dow Jones finished flat. Strength in chipmakers and AI-focused megacaps fuelled the rally, led by AMD (+11.4%), Dell (+9.1%), and Datadog (+6.2%). Meanwhile, gold prices surged past USD4,000/oz, lifting miners such as Newmont and Gold Fields. In Europe, the STOXX 600 (+0.8%) climbed after the EU announced plans to tighten steel import rules by reducing tariff-free quotas and raising tariffs on excess imports to 50% amid global overcapacity concerns. The move boosted regional steel producers but dragged auto stocks lower (-2.1%) on worries over rising costs. Across Asia, performance was mixed. The Nikkei (-0.45%) eased on profit-taking and rate hike concerns, the Hang Seng (-0.48%) slipped, while the Kospi remained closed for a public holiday.

 

Market Outlook. The FBM KLCI is expected to trade within a tight range as investors remain cautious ahead of Budget 2026, which will set the tone for domestic policy direction. Globally, sentiment may be buoyed by the Fed’s September minutes, which pointed to the possibility of further rate cuts later this year amid signs of labour market weakness, supporting interest in technology and AI-related stocks despite ongoing concerns of an AI bubble. However, the US government shutdown, now in its second week, could weigh on risk sentiment as the absence of key economic data heightens uncertainty.

 

Sector focus. We continue to expect selective interest in the construction, consumer, and renewable energy sectors, supported by positioning ahead of Budget 2026. We also remain optimistic on gold-related stocks, backed by sustained safe-haven demand amid ongoing global macroeconomic uncertainty.

 

Technical Commentary: 

The index closed slightly lower yesterday, forming a small-bodied candle with a lower shadow signalling brief profit-taking and mild consolidation above the breakout level. 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)

Matrix Concepts Holdings Bhd has signed an MOU with Golog Holdings Sdn Bhd to jointly develop the 618-acre China-Malaysia Air Silk Road Dual Hub Industrial Park in MVV TechValley, Negeri Sembilan, with a GDV of RM8 billion.

 

UEM Sunrise Bhd lost its bid to contest the IRB’s RM8.49 million tax assessment after the Federal Court allowed the Attorney General Chambers’ appeal, overturning a 2024 Court of Appeal decision that had permitted its unit UEM Land Bhd to pursue a judicial review and defer payment.

 

SP Setia Bhd is partnering with Japan’s Mitsui Fudosan to develop a RM1.3 billion residential project in Semenyih through their joint venture, Setia MF EcoHill Sdn Bhd, with the first phase slated for launch in 2026.

 

Tropicana Corp Bhd redeemed a RM139 million tranche of its sukuk wakalah under the RM1.5 billion programme, raising total repayments to RM1.12 billion as part of its debt management efforts.

 

The Employees Provident Fund (EPF) has ceased to be a substantial shareholder of IOI Properties Group Bhd after disposing of 100 million shares, or a 1.82% stake, on Oct 3, cutting its holding to 4.29% from 6.11%. EPF had been a substantial shareholder since January 2017.

 

The Employees Provident Fund (EPF) has ceased to be a substantial shareholder of ViTrox Corp Bhd after disposing of 2.46 million shares, or a 0.13% stake, on Oct 3, reducing its holding to 4.94% from 5.07%, just six months after first crossing the 5% threshold.

 

KNM Group Bhd has obtained High Court approval to sell its German unit, Deutsche KNM GmbH, to Japan’s NGK Insulators Ltd for €270 million (RM1.28 billion) as part of its debt restructuring plan. A court hearing on the scheme of arrangement is set for Oct 14.

 

Pecca Group Bhd has signed an MOU with Betamek Bhd to jointly develop advanced entertainment systems for in-flight and in-train applications, with Betamek handling technical development and Pecca focusing on physical integration and compliance.

 

Varia Bhd has lodged a sukuk murabahah programme of up to RM3 billion with the Securities Commission Malaysia to fund capital expenditure, refinance borrowings, support working capital, and for other corporate purposes.

 

GUH Holdings Bhd plans to expand into advanced printed circuit boards (PCBs) and launch a RM1.2 billion property project in Simpang Ampat, Penang. The group aims to produce multi-layer and high-density interconnect (HDI) PCBs for sectors such as telecommunications, automotive, and industrial controls.

Sentiment: Negative
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Market Mover
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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