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KLCI Edges Lower as Investors Digest Data
Wed, 26-Nov-2025 08:24 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI slipped 0.43% to 1,611.74 as investors remained cautious on the local front despite gains across most regional markets. Market sentiment was mixed, with 573 gainers narrowly outnumbering 571 losers. Property (+1.09%) and Technology (+1.03%) led sectoral gains, while Consumer (-1.58%), Telecommunications & Media (-1.57%), Construction (-1.04%), and REITs (-1.02%) were the top laggards.

 

Global Markets Review: Wall Street extended its gains, with the Dow (+1.43%), S&P 500 (+0.91%) and Nasdaq (+0.67%) closing higher as investors digested economic data that strengthened expectations of a possible Fed rate cut in December. US retail sales rose in September, though the increase came in below forecasts, while a sharp 12% drop in Conference Board consumer confidence raised concerns over spending resilience heading into the holiday season. Even so, upbeat retail earnings from Kohl’s and Abercrombie & Fitch helped support sentiment. Nvidia slipped 3.9%, capping Nasdaq’s upside, while Alphabet gained 1.3% on news of AI chip partnerships with Meta. European equities also advanced, with the STOXX 600 rising 0.91%, supported by optimism over a potential Ukraine peace deal and expectations of a December Fed cut. Bank stocks rose 1.8% on reports that the UK financial sector may receive exemptions from upcoming tax increases. Tech shares were more mixed, with ASMI down 1.55%. Asian markets were mixed. Japan’s Nikkei finished marginally higher (+0.07%) as AI-related names gained, although some chipmakers surrendered early advances.

 

Market Outlook. Malaysian equities are likely to trade cautiously in the near term amid mixed global cues. US September data showed a slower rise in retail sales, a modest 0.3% increase in PPI, and consumer confidence falling to a seven-month low, collectively pointing to easing inflation pressures and early signs of consumer fatigue. These developments have bolstered expectations of a December Fed rate cut, with markets now pricing in an 84% probability, up from 50% a week earlier. Investors will also be watching the September PCE price index, due 5 December, for clearer guidance on the Fed’s policy trajectory. Domestically, the ongoing corporate earnings season will remain a key driver of sector rotation and investor positioning.

 

Sector focus. We remain constructive on selective construction, power ancillary, and renewable energy stocks, supported by data centre growth and the shift toward cleaner energy. We also favour select consumer staples, underpinned by steady domestic consumption.

 

FBMKLCI Technical Outlook

 

Technical Commentary: The FBM KLCI eased, forming a small-bodied bearish candle with a slight lower shadow, signalling weak intraday support as it remains below the short-term EMAs. Indicators turned negative, with the MACD Line trading below the Signal Line, and the RSI trading below 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.

Company News (source: various)

Alliance Bank Malaysia Bhd reported its best quarter in three years with 2QFY2026 net profit rising 9% YoY to RM206.56m, supported by stronger income and lower provisions. It declared a first interim dividend of 9.37 sen, in line with its 40% payout policy.

 

Hong Leong Industries Bhd posted a record-high quarterly net profit of RM154.89m for 1QFY2026, driven by stronger motorcycle demand and lower raw material costs. The group raised its dividend to 30 sen per share.

 

Syarikat Takaful Malaysia Keluarga Bhd recorded its strongest quarterly earnings in nearly four years, with 3QFY2025 net profit up 15% YoY to RM115.42m due to stronger investment income. It declared an interim dividend of 18.5 sen.

 

Southern Cable Group Bhd posted a record quarterly net profit of RM35.72m in 3QFY2025, supported by higher sales volume and favourable product mix. Net profit for the nine-month period doubled to RM94.76m.

 

Lim Seong Hai Capital Bhd declared a record full-year dividend of 3.89 sen after 4QFY2025 net profit grew 5.2% YoY. Full-year earnings rose 35.6% to RM100.81m on stronger construction and facilities management contributions.

 

Wentel Engineering Holdings Bhd reported an 80.8% YoY jump in 3QFY2025 net profit to RM6.18m on stronger revenue and lower costs. Net profit for the first nine months more than doubled to RM17.32m.

 

WCT Holdings Bhd saw its 3QFY2025 net profit plunge 93.91% YoY to RM10.55m due to lower other income and weaker JV contributions. Revenue improved YoY, but 9MFY2025 earnings fell sharply without last year’s one-off JV gain.

 

D&O Green Technologies Bhd registered its largest quarterly net loss of RM169.09m in 3QFY2025 following a one-off RM250.46m inventory impairment tied to product portfolio realignment. Revenue declined 6.1% YoY amid temporary adjustments in automotive customer orders.

 

DRB-Hicom Bhd returned to a net loss of RM15.2m in 3QFY2025 despite higher revenue, dragged by losses from key subsidiaries. Nine-month net profit fell 12% YoY to RM60.62m due to softer contributions from aerospace, postal and property segments.

 

Favelle Favco Bhd secured RM79m in new crane supply contracts, with deliveries scheduled between 2026–2027. Its outstanding order book stood at RM519m as of 12 Nov.

 

Wawasan Dengkil Holdings Bhd secured a RM16.15m subcontract for flood mitigation works in Sepang involving earthworks, civil, structural and geotechnical works. The project begins on Nov 25 and is targeted for completion by Jan 1, 2027.

Sentiment: Neutral
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