Market Review & Outlook
Malaysia Market Review: The FBM KLCI closed slightly higher (+0.2%) as investors digested corporate earnings and regional developments. Sector performance was broadly negative, with only Plantation (+0.7%), Consumer (+0.4%), Utilities (+0.3%), and Finance (+0.1%) ending in the green.
Global Markets Review: Wall Street closed lower as weakness in megacap tech weighed on sentiment, with the Dow Jones (-0.2%), S&P 500 (-1.0%), and Nasdaq (-1.6%) declining. Meta Platforms slumped 11.3% after a nearly USD16bn one-off tax charge tied to President Trump’s “One Big Beautiful Bill,” while Microsoft fell 2.9% following earnings. Both companies signalled heavier AI-related spending, sparking concerns over delayed returns. Meanwhile, Fed Chair Jerome Powell’s cautious tone dampened hopes for another move in December, with 25 bps cut odds slipping to 75% from >90% a week ago. European equities fell despite stronger growth data and an unchanged ECB policy rate, while Asian markets were mixed. Japan’s Nikkei 225 hit a record high after the BOJ held rates steady despite dissent, and South Korea’s Kospi (+0.1%) gained on optimism over trade talks with Washington. In contrast, Chinese markets eased as investors stayed cautious after the Trump–Xi meeting, despite upbeat remarks from both leaders.
Market Outlook. The FBM KLCI may trade softer today, mirroring Wall Street’s weakness after Fed Chair Powell downplayed the likelihood of further rate cuts this year. The repricing of policy expectations has pushed US Treasury yields higher, weighing on risk appetite. Market sentiment also turned cautious following weaker earnings momentum and heavier AI-related spending guidance from Meta and Microsoft, which sparked concerns over margin pressure and delayed returns. On the geopolitical front, sentiment was partly supported by the recent Trump-Xi meeting, where both leaders agreed to reduce tariffs and delay rare earth export restrictions, providing short-term relief for trade and commodity sentiment. Nonetheless, overall fund flows are expected to remain uncertain amid lingering geopolitical risks and the absence of fresh domestic catalysts.
Sector focus. We expect sentiment to remain cautious in the near term, in line with softer global risk appetite. Nonetheless, we maintain a positive stance on the renewable energy and utilities sectors, supported by ongoing policy initiatives, improving regulatory clarity, and sustained investment momentum. Selective interest may also emerge in healthcare and REIT counters as investors rotate into defensive names amid heightened market volatility.
Company News (source: various)
EWI Capital Bhd is pivoting into investment holding with a A$100.0m (RM276.5m) commitment as an anchor investor in TrustCapital Australian Office Fund No 3, managed by Singapore’s TrustCapital Advisors.
AWC Bhd secured a RM99.1m five-year contract from TM Technology Services for integrated facilities management at TM Central 1, covering operations and maintenance from Nov 2025 to Oct 2030.
Capital A Bhd expects to exit PN17 status by Dec 2025 after completing its aviation restructuring under AirAsia X and finalising its capital reduction and distribution.
Bursa Malaysia Bhd lowered its FY2025 targets as 3Q profit fell 25.5% y-o-y to RM63.9m due to weaker trading revenue and softer market sentiment.
British American Tobacco (M) Bhd posted a record-low 3Q net profit of RM7.0m, down nearly 90% y-o-y, as tighter regulations hit cigarette sales.
CTOS Digital Bhd saw 3Q net profit drop 10.4% y-o-y to RM24.7m on lower associate contributions and higher costs, while revenue grew 4.0% to RM83.0m.
Chin Teck Plantations Bhd recorded an all-time high 4Q profit of RM115.7m, boosted by a one-off land disposal gain, but expects weaker FY2026 earnings.
Pavilion REIT’s 3Q net property income rose 10.0% y-o-y to RM145.5m, driven by new assets Banyan Tree KL and Pavilion Hotel KL, lifting total AUM to RM9.0bn.
Mudajaya Group Bhd is selling four Ijok land parcels for RM36.8m, expecting a RM24.1m gain and completion by 1Q2026.
Pharmaniaga Bhd is acquiring two industrial buildings in Terengganu and Sarawak for RM30.5m to strengthen its medical logistics and distribution network.
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| Currency | Buy Rates (RM) | Sell Rates (RM) | 
|---|---|---|
| USD | 4.183360 | 4.212600 | 
| EUR | 4.873028 | 4.878308 | 
| CNY | 0.589871 | 0.590472 | 
| HKD | 0.538522 | 0.542295 | 
| SGD | 3.220053 | 3.242721 |