Market Review & Outlook
Malaysia Market Review: The FBM KLCI closed 0.89% higher as sentiment improved following the Federal Reserve (Fed)’s interest rate cut. Banking heavyweights such as MAYBANK, CIMB, and PBBANK provided the primary lift. Despite the index performance, market breadth remained negative with 494 gainers versus 591 decliners. Sector performance was mixed, with construction (-2.54%) leading the decliners, while Telecommunication & Media (+1.89%) emerged as the top gainer.
Global Markets Review: Wall Street closed higher on Thursday, with the Dow (+1.34%) and S&P 500 (+0.21%) extending to new record levels, while the Nasdaq (-0.25%) eased as investors rotated out of tech following the Fed’s rate cut and weaker Oracle results. Flows shifted toward cyclicals positioned to benefit from firmer U.S. growth. In Europe, the STOXX 600 rose 0.55% on broad optimism after the Fed’s interest cut. In Asia, major benchmarks traded lower. Japan’s Nikkei 225 declined 0.90%, while South Korea’s KOSPI fell 0.59% amid broad-based risk moderation. China’s Shanghai Composite slipped 0.70%, with investors turning their attention to the Central Economic Work Conference, where authorities are expected to articulate 2026 growth parameters and policy priorities.
Market Outlook. We expect the FBMKLCI to trade with an upward bias today, supported by improved global liquidity sentiment following the Fed’s rate cut and a resilient U.S. equity backdrop, where the S&P 500 and Dow continued to notch new highs despite tech-sector volatility. Lower U.S. Treasury yields, a softer USD and broad-based rotation into cyclicals in the US should reinforce foreign inflows into Malaysia, while domestic leadership is likely to remain anchored by financials and telecommunications. Cyclical sectors may stay uneven amid soft global industrial signals and ongoing profit-taking in construction. Incremental policy cues from China’s Economic Work Conference and regional year-end rebalancing may provide added support.
Sector focus. We remain constructive on selective power-ancillary and renewable energy names, underpinned by structural tailwinds from the ongoing energy transition. These secular themes are expected to remain resilient despite prevailing global trade headwinds and continue to attract rotational interest given their steady earnings visibility.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI climbed as it printed a bullish marubozu candle, signalling a firm shift in momentum and a rebound from the previous day’s decline. Indicators turned mixed, with the MACD line trading below the signal line while the RSI moved above 50. The next resistance is located at 1,660, while support is envisaged around 1,600.
Company News (source: various)
Malaysia's stock exchange capped the year with the most number of listings in two decades and dozens of companies in the queue list for 2026. Bursa Malaysia Bhd hosted 60 initial public offerings (IPOs) in a year marked by global market turmoil, trade tensions and economic uncertainties — an achievement that reinforces the exchange’s position as one of Asean's most active for IPOs, its chief executive officer Datuk Fad’l Mohamed said.
Critical Holdings Bhd has bagged a RM40.8 million contract to undertake mechanical and electrical works for a data centre project in Bukit Jalil.
Farm Fresh Bhd's co-founder and group managing director Loi Tuan Ee has disposed of RM132.5 million worth of shares in the dairy producer via a direct business transaction.
Vantris Energy Bhd, formerly Sapura Energy Bhd, posted a third-quarter net profit of RM4.27 billion, as opposed to a net loss of RM293.06 million a year ago, as it recorded a one-off RM4.47 billion gain from debt forgiveness following its financial restructuring.
Renewable-energy machinery supplier Wasco Greenergy Bhd said it needs clearer regulations in its largest revenue-generating market, Indonesia, before making major investments in biomass steam-energy systems as it expands in the world’s largest palm-oil-producing country.
Japanese sauce maker Otafuku has officially opened its RM50 million halal-certified factory and office in Sendayan TechValley of Negeri Sembilan. Otafuku in Malaysia is operated by a joint venture between Otafuku Sauce Co Ltd and Texchem Resources Bhd’s subsidiary Sushi King Holdings Sdn Bhd.
AGX Group Bhd has proposed a bonus issue of up to 108.22 million warrants, on the basis of one warrant for every four shares held.
The Court of Appeal has ordered RHB Bank Bhd to produce the Minimum Due Diligence guidelines for the financial institution governing foreign-exchange transactions for a shipping company within 45 days.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.095157 | 4.126734 |
| EUR | 4.808018 | 4.811741 |
| CNY | 0.582345 | 0.582796 |
| HKD | 0.526309 | 0.529879 |
| SGD | 3.164796 | 3.186440 |