Market Review & Outlook
Malaysia Market Review: The FBM KLCI ended last week softer, slipping 0.28% to close at 1,616.52. Sentiment remained cautious, with selling pressure in key heavyweights weighing on the broader market. Market breadth was negative, with 590 losers outpacing 455 gainers. Most sectors ended in the red, led by Consumer (-1.07%), Technology (-0.98%) and Telecommunications & Media (-0.96%). Meanwhile, Construction (+1.04%) and Property (+0.32%) were the top gainers.
Global Markets Review: Wall Street closed higher on Friday, with the Dow (+0.22%), S&P 500 (+0.19%) and Nasdaq (+0.31%) registering modest gains. US Core PCE, the Fed’s preferred inflation gauge, eased to 2.8% YoY in September (Aug: 2.9%), reinforcing expectations of a 25-bp rate cut this week. In Europe, the Stoxx 600 was broadly unchanged (-0.01%), as US-led negotiations to end the war in Ukraine continue. In Asia, Japan’s Nikkei 225 fell 1.05% amid concerns over a potential BOJ rate hike later this month, while China’s Shanghai Composite gained 0.70%, boosted by the 425% surge in Chinese chipmaker Moore Threads following its Shanghai debut.
Market Outlook. Following last week’s labour and inflation releases, markets have largely cemented expectations for an 86% probability of a 25-bp cut at this week’s FOMC meeting. Investors may remain cautious ahead of the interest rate announcement, awaiting further clarity on the Fed’s rate trajectory heading into 2026, which could lead to near-term volatility. Nonetheless, prevailing expectations of a Fed easing cycle should keep sentiment positive and continue to underpin the domestic market. In addition, year-end window-dressing activity is likely to provide further near-term support for the FBM KLCI through December.
Sector focus. We favour domestic-oriented sectors such as consumer staples and REITs, which typically benefit from a firmer ringgit amid a US easing cycle. Financial heavyweights may also see renewed interest as investors rotate into defensive sectors toward year-end. We remain constructive on construction, power-ancillary and renewable-energy plays, supported by a firm macro outlook, sustained data-centre demand and the ongoing transition toward cleaner energy.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI continued to ease, forming a bearish hammer candlestick, which indicates persistent selling pressure. Indicators have turned negative, with the MACD line trading below the signal line, while the RSI remains below 50. The next resistance is located at 1,660, while support is envisaged around 1,600.
Company News (source: various)
The Court of Appeal has reduced the value of an arbitral award against a wholly-owned subsidiary of MISC Bhd in its long-running legal dispute with Sabah Shell Petroleum Company Ltd (SSPC) over the Gumusut-Kakap semi-floating production system.
Bintai Kinden Corporation Bhd has moved ahead with legal action to recover RM9.1 million from the vendor of its 2021 acquisition of Johnson Medical International Sdn Bhd.
Jentayu Sustainables Bhd has been served with an originating summons and injunction application by shareholder Andy Lai Wee Young, who is challenging the company’s decision to postpone its extraordinary general meeting and seeking to invalidate the resolutions passed on Dec 4.
Newly listed Geohan Corp Bhd has secured two contracts from SRS LRT Sdn Bhd for the Penang LRT Mutiara Line project with a combined value of RM59 million.
Genting Bhd is establishing an unrated medium-term notes (MTN) programme of up to RM5 billion in nominal value, with the first series used to part-finance the takeover offer for Genting Malaysia Bhd.
The Securities Commission Malaysia (SC) has approved the proposed listing of Sunway Healthcare Holdings Bhd (SHH) on the Main Market of Bursa Malaysia. SHH is a direct 84%-owned joint-venture company of Sunway City Sdn Bhd (SunCity), which in turn is a wholly-owned unit of Sunway Bhd.
A company majority-owned by Nextgreen Global Bhd and IOI Corp Bhd is buying 32.794 hectares of industrial land in Pekan, Pahang for RM70.4 million to build an empty-fruit-bunch (EFB) pulp production facility.
Ancom Nylex Bhd has agreed to sell up to a 50% stake in a new unit to be formed under an internal restructuring to a Thai partner in a deal worth close to RM77 million.
Sarawak-based construction firm Quality Concrete Holdings Bhd has secured a contract worth RM294.59 million for the proposed Mukah water supply system in the state.
Hartanah Kenyalang Bhd has secured a RM42.79 million contract to build an immigration post and staff quarters in Serikin, Bau, Sarawak.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.097833 | 4.130510 |
| EUR | 4.787501 | 4.796926 |
| CNY | 0.581850 | 0.582432 |
| HKD | 0.526686 | 0.530897 |
| SGD | 3.160352 | 3.185739 |