Market Review & Outlook
Malaysia Market Review: The FBM KLCI inched up 0.07% to 1,618.78 as firmer regional markets and renewed hopes of a US rate cut helped lift the benchmark off its intraday lows. Market sentiment remained soft, with 541 gainers outweighed by 603 losers. REITs (+1.38%), Consumer (+1.08%) and Construction (+1.04%) led sector gains, while Healthcare (-1.37%) and Utilities (-1.30%) topped the laggards.
Global Markets Review: Wall Street advanced overnight, with the Dow (+0.44%), S&P 500 (+1.55%) and Nasdaq (+2.69%) rebounding as rising expectations of a December Fed rate cut and optimism around AI developments helped investors look past stretched tech valuations. Sentiment was supported by dovish Fed commentary, as Fed Governor Christopher Waller on Monday joined New York Fed President John Williams in signalling that conditions are aligning for potential easing next month, though gains remained concentrated in mega-cap AI names. European equities also edged higher, with the STOXX 600 (+0.14%) lifted by technology and AI-related stocks amid optimism over a possible US rate cut and progress in Ukraine peace negotiations, though strength in tech, travel, autos and basic resources were offset by weakness in defence counters. Asian markets were mixed, with the Hang Seng (+1.97%) firmer and the Kospi (-0.19%) softer as investors digested the latest Fed signals and uneven regional tech performance, while Japan’s Nikkei was closed for a national holiday.
Market Outlook. Malaysian equities are likely to remain cautious in the near term amid mixed global signals, with investors closely monitoring US monetary policy. Key US data this week including retail sales, PPI and CB Consumer Confidence on 25 Nov, will offer further read-through on consumer spending and inflation. Focus will also be on the US PCE price index for September, now scheduled for 5 Dec, as it remains the Fed’s preferred inflation gauge. Rate-cut expectations have strengthened following a series of dovish Fed comments, with markets now pricing an 81% probability for December rate cut, up from 41% a week ago. Locally, the ongoing corporate earnings season will continue to shape investor positioning.
Sector focus. We remain constructive on selective construction, power ancillary, and renewable energy stocks, driven by the growth of data centres and the shift toward cleaner energy. Additionally, we continue to favour select consumer staples stocks, supported by stable domestic consumption and robust earnings.
FBMKLCI Technical Outlook
Technical Commentary The FBM KLCI inched higher, forming a small-bodied candle with a lower shadow, indicating mild dip-buying interest near the day’s lows. Indicators were mixed, with the MACD Line trading below the Signal Line, and the RSI trading above 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.
Company News (source: various)
Telekom Malaysia Bhd’s 3QFY25 net profit rose 47.6% YoY to RM686.3m on resilient core operations, fair value gains and lower taxes, while revenue grew 2.6% YoY to RM2.99bn; no dividend was declared.
IOI Properties Group Bhd’s 1QFY26 net profit surged to RM664.3m on a RM502.8m remeasurement gain from its full acquisition of Scottsdale Properties, with revenue jumping 40.8% YoY to RM968.7m across all core segments.
Kelington Group Bhd’s 3QFY25 net profit rose 25% YoY to RM41.1m, prompting a special dividend and a third interim dividend totalling 4 sen, as stronger earnings from Singapore offset weakness in China; revenue increased 3% YoY to RM316.4m.
Cahya Mata Sarawak Bhd returned to profitability with a 3QFY25 net profit of RM32.1m versus a loss last year, supported by better margins, lower forex losses and stronger contributions from cement, road maintenance and property development; no dividend was declared.
Apex Healthcare Bhd’s 3QFY25 net profit fell 14.4% YoY to RM15.6m on low-margin sales, the absence of a one-off gain, higher depreciation and continued associate losses, though revenue rose 6.6% YoY to RM253.1m; no dividend was declared.
SKP Resources Bhd’s 2QFY26 net profit declined 20% YoY to RM27.5m due to start-up costs for new customers, with revenue down 15.4% YoY to RM537.4m; no dividend was declared.
Well Chip Group Bhd’s 3QFY25 net profit nearly tripled to RM23.7m on stronger pawnbroking and jewellery sales, with revenue up 47.7% YoY to RM70.5m; no dividend was declared.
Pappajack Bhd posted record 3QFY25 earnings with net profit up 23.6% YoY to RM8.06m on higher margins, alongside a 12.1% YoY rise in revenue to RM32.7m, and declared a 0.5 sen dividend.
Berjaya Food Bhd narrowed its 1QFY26 net loss to RM14.8m from RM33.7m last year on cost controls, store rationalisation and improved overseas contributions, with revenue up 3.3% YoY to RM128.3m.
Life Water Bhd’s 1QFY26 net profit rose 25.1% YoY to RM9.37m on higher bottled-water sales, while revenue increased 20.3% YoY to RM51.2m; no dividend was declared.
Varia Bhd will lead the development of a commercial project on Citaglobal Bhd’s land in Kuala Lumpur, with full profit entitlement and project completion targeted within 36 months from building plan approval.
Magna Prima Bhd entered a JV with Amat Potensi to develop 709 homes in Perak on 99-year leasehold land, with the landowner entitled to RM33m plus 25% of project PBT.
Bursa Malaysia Securities reprimanded FSBM Holdings Bhd for inaccurate 3Q and 4Q FY2024 financial reports and ordered limited audit reviews for four upcoming quarters, while noting no directors were personally liable.
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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 | 4.116196 | 4.147085 |
| EUR | 4.779011 | 4.786244 |
| CNY | 0.583313 | 0.583620 |
| HKD | 0.529202 | 0.533225 |
| SGD | 3.170028 | 3.194008 |