Market Review & Outlook
Malaysia Market Review: The FBM KLCI ended marginally lower by 0.13% at 1,611.54 pts as investors remained cautious ahead of the US Federal Reserve’s interest rate decision. Sector performance was broadly negative, with only Industrial Products (+0.7%), Energy (+0.3%), and Utilities (+0.4%) closing in the green.
Global Markets Review: On Wall Street, the Dow Jones (-0.2%), S&P 500 (0.0%), and Nasdaq (+0.6%) ended mixed after the Federal Reserve delivered its second rate cut of the year but stopped short of signalling further easing in December. Fed Chair Jerome Powell’s cautious tone tempered sentiment, though gains in tech stocks limited losses. Nvidia rallied after President Donald Trump hinted at easing export curbs on its AI chips ahead of his meeting with China’s President Xi Jinping, lifting the Nasdaq to another record high. In Europe, stocks extended their losing streak for a second session as investors awaited the Fed’s policy outcome. Across Asia, sentiment was positive, with Japan’s Nikkei 225 (+2.2%) hitting a record high on optimism over US-Japan trade ties and prospects of further Fed easing. The Shanghai Composite (+0.7%) also gained ahead of the Xi-Trump meeting, while Hong Kong’s Hang Seng Index (-0.3%) slipped on profit-taking in technology counters.
Market Outlook. The FBM KLCI may trade softer after Fed Chair Powell downplayed the certainty of further rate cuts this year. The repricing of policy expectations has pushed US Treasury yields higher, potentially weighing on risk appetite and curbing foreign fund inflows into emerging markets. Nonetheless, optimism over AI-related developments continues to lend support, following strong results from Microsoft and Alphabet, and NVIDIA’s unveiling of the Blackwell Ultra and Rubin architectures at its GTC 2025 Conference, highlighting accelerating global investment in AI infrastructure. Investor focus now turns to the Trump–Xi meeting on 30 October and earnings from Apple and Amazon, as guidance on AI and data-centre capital spending will be closely watched.
Sector focus. We expect sentiment in the technology sector to remain constructive, reflecting optimism toward AI-related developments. We also maintain a positive outlook on the renewable energy and utilities sectors, supported by ongoing policy initiatives, improving regulatory clarity, and sustained investment momentum.
Company News (source: various)
Capital A Berhad has cleared the final hurdle for its aviation restructuring, with all conditions met or waived to consolidate all AirAsia-branded airlines under AirAsia X Berhad. This follows AirAsia X and its Thai partner agreeing to buy out Asia Aviation’s minority shareholders, paving the way for Capital A’s PN17 exit.
KNM Group Berhad will seek shareholder approval to adjourn the vote on the €270.0m (RM1.34bn) sale of its German unit, Deutsche KNM GmbH, to 6 November 2025, a day after its scheduled delisting. The 30 October EGM will proceed, with shareholders to decide on the adjournment motion.
IJM Corporation Berhad has secured a RM873.9m contract from Pearl Computing Malaysia Sdn Bhd for mechanical and electrical fit-out works of a hyperscale data centre at Elmina Business Park in Selangor. The build-only project will commence in 3Q2026 and complete in 1Q2028.
YTL Corporation Berhad’s unit, YTL Hotels and Properties Sdn Bhd, has invested NZ$160.0m (RM388.0m) to acquire the 225-room Hotel Indigo in Auckland, marking its first hotel investment in New Zealand.
Infomina Berhad faces a RM225.7m counterclaim from the Bank of the Philippine Islands after suing over an alleged wrongful contract termination. The counterclaim includes RM212.7m in exemplary damages, RM12.3m as fee refunds, and RM0.7m in legal costs.
Perak Corporation Berhad has been queried by Bursa Malaysia over unusual market activity that lifted its share price to a six-year high. The regulator requested clarification on any unannounced developments or rumours behind the surge.
Microlink Solutions Berhad received a qualified audit opinion on its extended FY2025 accounts following a RM76.1m write-off of software development expenditure.
DXN Holdings Berhad recorded a 6.5% year-on-year rise in 2QFY2026 net profit to RM70.3m despite a 1.5% decline in revenue to RM481.2m, aided by lower expenses. It declared a 0.8 sen interim dividend payable on 28 November.
KIP Real Estate Investment Trust reported a 51% year-on-year increase in 1QFY2026 net property income to RM29.7m, with revenue rising 52.6% to RM40.8m, supported by newly acquired assets. The REIT declared a 1.8 sen distribution per unit.
Disclaimer
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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.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.170987 | 4.204276 |
| EUR | 4.872100 | 4.877133 |
| CNY | 0.589575 | 0.590185 |
| HKD | 0.537072 | 0.540837 |
| SGD | 3.222926 | 3.245616 |