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All Eyes on Budget 2026
Fri, 10-Oct-2025 07:25 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+0.13%) edged higher, supported by bargain hunting and optimism ahead of Budget 2026. Market breadth turned positive with 751 gainers versus 385 losers, while lower liners also advanced. Sector-wise, Healthcare (+5.86%) and Technology (+2.85%) led the gains, whereas Transportation & Logistics (-0.83%) was the main laggard.

 

Global Markets Review: Wall Street closed lower on Thursday as investors consolidated positions ahead of the third-quarter earnings season amid limited economic data from the ongoing US government shutdown. The S&P 500 (-0.28%), Nasdaq (-0.08%), and Dow Jones (-0.52%) pulled back from recent record highs driven by AI gains, with caution prevailing over earnings momentum and the Fed’s next policy move. Meanwhile, a US-brokered ceasefire agreement between Hamas and Israel to end the two-year Gaza conflict eased geopolitical tensions, sending Brent crude down 1.6% to USD 65.2/bbl. Gold also retreated from record highs as safe-haven demand moderated. In Europe, the STOXX 600 (-0.4%) slipped, dragged by a 5% fall in HSBC shares after the bank proposed to privatise its Hong Kong-based subsidiary, Hang Seng Bank, which weighed on the broader European banking sector (-1.4%). Across Asia, markets were mostly higher, led by Japan’s Nikkei (+1.77%) following a 13% surge in SoftBank shares after it agreed to acquire ABB’s robotics division for USD5.4bn to expand its AI portfolio.

 

Market Outlook. The FBM KLCI may extend its upward momentum on continued bargain hunting, with investors positioning ahead of Budget 2026 for policy clarity and potential fiscal catalysts. Globally, easing geopolitical tensions following the Gaza ceasefire have prompted a pullback in oil and gold prices, which could weigh on energy- and precious metal-related counters while lending support to consumer and transport sectors. Meanwhile, attention will shift to Wall Street’s upcoming third-quarter earnings season amid a data-light backdrop from the ongoing US government shutdown.

 

Sector focus. We anticipate sustained rotational interest in the construction, consumer, and renewable energy sectors, driven by pre-Budget positioning and expectations of policy incentives. Meanwhile, oil- and gold-related counters may come under selling pressure following the recent pullback in commodity prices amid easing geopolitical tensions.

 

FBMKLCI Technical Outlook

Technical Commentary: 

The index closed higher yesterday, forming a doji candle, signalling market indecision despite the gains. 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)

Top Glove Corporation Bhd posted a 4QFY2025 net profit of RM38.56 million (from RM6.64 million loss) a year ago, supported by stronger sales and lower raw material costs. FY2025 net profit rose to RM109.07 million on 39% higher revenue of RM3.49 billion, with a 0.48 sen dividend declared.

 

IHH Healthcare Bhd will maintain its 2018 offer prices of ₹170 per Fortis share and ₹17.6 per Fortis Malar share for its planned 26% stake acquisitions, following regulatory approval from India’s Securities and Exchange Board to proceed with the long-delayed open offers.

 

Public Bank  Bhd’s founder Tan Sri Teh Hong Piow’s family trimmed its stake by 0.26% via the sale of 50 million shares through Consolidated Teh Holdings, reducing its interest to 22.02%, as part of a requirement to pare down to 10% within five years under the Financial Services Act.

 

NuEnergy Holdings Bhd’s shareholder, Agrobulk Holdings Sdn Bhd, has raised its stake to 57.99% following the close of a mandatory general offer that received valid acceptances for 51.23 million shares or 27.12% of its issued capital.

 

Ramssol Group Bhd’s subsidiary RAMS PeopleTech Sdn Bhd has been appointed by Tencent Cloud as its cloud service distributor in Southeast Asia, with plans to become its first Migration Service Platform provider outside China.

 

Malayan United Industries Bhd has secured a US$20 million (RM84.3 million) term loan from Singapore-based Indies Special Opportunities LV Ltd to fund capital expenditure for its subsidiary Plaza on Hyde Park Ltd, refinance existing loans, and support the renovation of Corus Hyde Park Hotel.

 

KNM Group Bhd has rejected MAA Group Bhd’s request to hold an EGM to approve the €270 million (RM1.33 billion) sale of Deutsche KNM GmbH, citing regulatory constraints, though MAA has moved ahead with issuing the EGM notice to shareholders.

 

Ivory Properties Group Bhd will be delisted from Bursa Malaysia’s Main Market on Oct 14 after its appeal for more time to submit a regularisation plan was rejected. The PN17 company triggered the status in 2022 following a disclaimer of opinion on its FY2022 accounts, when it posted a RM79.51 million net loss.

Sentiment: Positive
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