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FBM KLCI Dips as Market Stays Cautious
Fri, 28-Nov-2025 08:05 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI slipped on Thursday, dragged by losses in energy-linked stocks amid cautious market sentiment. Market breadth was negative, with 448 gainers versus 656 losers. Most sectors closed in the red, except transportation & logistics (+0.43%), consumer (+0.17%), property (+0.15%), and energy (+0.08%).

 

Global Markets Review: US markets were closed on Thursday for Thanksgiving, with a shortened session scheduled for Friday. European equities closed higher, with the STOXX 600 up 0.14%, reversing earlier losses as most major bourses and sectors gained on expectations of US rate cuts. Key movers included Puma, which surged 18.9% on takeover interest, while defense stocks Rheinmetall (1.24%) and Saab (2.5%) pared earlier gains amid continued US efforts to broker a peace deal between Russia and Ukraine. Novo Nordisk fell 1.5% after the US CMS announced new Medicare prices for Ozempic and Wegovy from 2027, representing a 71% discount from current list prices. UK 10-year gilt yields rose over 2 bps as investors assessed the potential impact of the Autumn Budget. In Asia, markets were mixed, with Japan’s Nikkei (+1.23%) and South Korea’s KOSPI (+0.66%) leading gains as tech stocks tracked Wall Street’s strength, supported by optimism over potential US rate cuts and improving risk appetite.

 

Market Outlook. Malaysian equities are likely to trade cautiously in the near term, reflecting mixed global cues. The latest Fed Beige Book indicated that US economic activity was largely unchanged, with softer employment conditions and a pullback in consumer spending outside higher-income households, while price pressures remained moderate. Businesses continued to report cost headwinds linked to tariffs, steady wage growth, and labour shortages across manufacturing, construction, and healthcare, alongside residual disruptions from the recent government shutdown. Market expectations for a December Fed rate cut have climbed to about 80%, lending some support to risk appetite, although uncertainty around the US macro trajectory and policy outlook may keep investors guarded ahead of key data releases, including the September PCE Price Index on 5 December. On the domestic front, ongoing corporate earnings will continue to drive sector rotation and influence market direction.

 

Sector focus. We continue to hold a positive outlook on select construction, power ancillary, and renewable energy stocks, supported by growing data centre demand and the shift toward cleaner energy. We also prefer certain consumer staples, underpinned by steady domestic consumption.

 

FBMKLCI Technical Outlook

 

Technical Commentary: The FBM KLCI formed a bearish rejection bar reflects intraday buying pressure fading near resistance. Indicators turned positive, with the MACD Line trading above the Signal Line, while the RSI trading above 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.

Company News (source: various)

UEM Group Bhd is reportedly taking UEM Edgenta Bhd private, citing the latter’s compressed valuation as the reason. Trading in UEM Edgenta shares was suspended from 4:27 pm on Nov 27, with the stock closing at 87 sen, valuing the company at RM718.19 million.

 

Hong Leong Bank Bhd posted a 5.4% rise in 1QFY26 net income to RM1.68 billion, supported by growth across most operating segments, though international banking dragged profits. Net profit remained flat at RM1.09 billion due to higher impairment losses and weaker associate income.

 

RHB Bank Bhd posted a record 3QFY2025 net profit of RM904 million, up 8.5% YoY, boosted by higher non-interest income and a 92% decline in credit loss provisions. For the nine months, net profit rose to RM2.46 billion, supported by a 3.8% increase in net interest income.

 

YTL Corp Bhd saw its 1QFY2026 net profit rise 3.8% to RM346.48 million despite a 1.7% dip in revenue, supported by higher sales and lower costs in its cement and building materials segment. YTL Power International Bhd, 52.46%-owned by YTL Corp, posted a 6.4% increase in quarterly net profit to RM500.57 million, even as revenue fell 5.7%.

 

Axiata Group Bhd reported a 3QFY25 net loss of RM27.35 million due to a RM213.4 million goodwill impairment, while revenue fell 5% YoY. Year-to-date net profit dropped 66% to RM403.3 million.

 

QL Resources Bhd’s 2QFY2026 net profit fell 9.4% to RM116.23 million, dragged by weaker revenue across most business segments, except its FamilyMart convenience stores. For 1HFY2026, net profit declined 8% to RM216.83 million, with revenue down 1.45% YoY

 

Sime Darby Bhd’s 1QFY2026 net profit fell 56% to RM355 million, dragged by weaker sales of industrial equipment and vehicles, following a one-off RM458 million land sale in the prior year. Quarterly revenue declined slightly to RM18.03 billion.

 

Genting Bhd 3QFY25 net profit tumbled 86.5% to RM30.3 million due to lower unrealised forex gains, interest income, and higher depreciation, despite revenue rising 14.3%.

 

Genting Malaysia Bhd 3QFY25 net profit fell 79% to RM119.7 million on sharply lower unrealised forex gains, while revenue grew 22.1% to RM3.36 billion.

 

Inari Amertron Bhd 1QFY26 net profit surged 113.5% to RM51.5 million on favourable forex movements, though revenue declined 16% due to softer demand and lower customer orders.

 

Malakoff Corp Bhd 3QFY25 net profit dropped 67.5% to RM28.2 million after a turbine fire at the Tanjung Bin Energy plant, with lower energy payments and missing insurance proceeds weighing on earnings.

 

Berjaya Corp’s 1QFY2026 net loss narrowed to RM10.94 million from RM167.85 million a year ago, dragged by tax expenses, while revenue rose 3.6% to RM2.31 billion.

Sentiment: Negative
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