Market Review & Outlook
Malaysia Market Review: The FBM KLCI closed 0.4% higher, supported by institutional buying in heavyweight stocks. Banking heavyweights such as MAYBANK, CIMB and PBBANK, together with TENAGA, provided the primary lift to the index. Sector performance was mixed, with gains led by Healthcare (+0.4%), Industrial Products (+0.4%) and Finance (+0.3%), while Telecommunications & Media (-1.0%) and Technology (-0.7%) were the main laggards.
Global Markets Review: Wall Street closed lower on Monday as investors turned cautious ahead of a packed US data week, led by the November jobs report due later today, while a rotation out of AI-related tech stocks weighed on sentiment amid valuation concerns and uncertainty over AI capex returns. In Europe, the STOXX 600 rose 0.7%, supported by broad-based gains led by banks as investors returned to risk assets ahead of a busy week of central bank decisions and delayed US economic data. Meanwhile, Asian markets closed mostly lower, tracking Wall Street’s weakness on Friday as investors paused the AI-led rally and rotated into value stocks. Japan’s Nikkei 225 fell 1.3% despite a four-year high in BOJ Tankan business sentiment, while South Korea’s Kospi declined sharply on losses in heavyweight semiconductor names. China’s Shanghai Composite slipped 0.6%, reflecting broader risk aversion across the region.
Market Outlook. We expect the FBM KLCI to continue trading range-bound around 1,650 with a mild positive bias today, supported by recent technical strength and sustained domestic institutional buying, although external sentiment remains cautious following overnight weakness in global markets driven by rotation out of AI-related technology stocks. Downside risk should be limited by defensive and value-oriented sectors, particularly financials, utilities and plantations. On the international front, focus will be on the US Non-Farm Payrolls later today, followed by US inflation data on 18 December and the Bank of Japan’s policy decision on 19 December, as these releases will help shape expectations for Fed’s policy path into 2026 and influence global risk sentiment and capital flows.
Sector focus. We remain positive on selective power-ancillary and renewable energy names, backed by long-term energy transition trends that support earnings resilience and sustain investor rotation amid global trade uncertainty. Meanwhile, recent ringgit strength may favour domestic-oriented sectors such as consumer staples and REITs.
Technical Commentary: The FBM KLCI extended its advance for a third consecutive session, printing a bullish candle and holding above its short-term EMAs. Indicators remained positive, with the MACD line trading above the signal line and the RSI remaining above 50. The next resistance is located at 1,660, while support is envisaged around 1,600.
Company News (source: various)
Poh Kong Holdings Bhd reported an 85.6% YoY surge in 1QFY26 net profit to RM39.6m, driven by higher gold prices and strong jewellery demand. Revenue rose 33.6% YoY to RM439.9m, while margins improved to 25%, and the group remains positive on Malaysia’s gold sector amid expectations of a continued bull run into 2026.
Binastra Corp Bhd said its jointly owned unit with Solarvest Holdings Bhd, Binastra Atlantic Sdn Bhd, secured RM171.7m in EPCC contracts for three LSS5 solar projects awarded by Maya Jaya Sdn Bhd. The contracts are classified as recurrent related party transactions due to shareholding links involving Binastra’s managing director.
Ann Joo Resources Bhd entered into two JV agreements with Transyear Sdn Bhd to develop the 207-acre Gurun Heavy Industrial Park in Kedah, with a gross development value exceeding RM203.0m. The total cost attributable to the project, including land, is estimated at RM82.2m.
Lianson Fleet Group Bhd announced board changes linked to its controlling shareholders, with Lim Chern Wooi redesignated as managing director and Lim Chern Yuan appointed as non-independent, non-executive chairman. The changes reflect continued control by the Lim family, which holds a combined 70.4% stake in the group.
Pasukhas Group Bhd secured a RM63.6m contract to construct a data centre in Johor Bahru via Midtown Engineering Sdn Bhd, appointed by a major US technology company. The project, worth 5.6x its market capitalisation, will run from Jan 2026 to Jan 2027, significantly enhancing earnings visibility.
Turiya Bhd said minority shareholders rejected its proposed RM135.0m acquisition of Wisma Sentral Inai at an EGM. Following the rejection, the group will dispose of its entire stake in Turiya Properties Sdn Bhd to chairman Datuk Seri Shamir Kumar Nandy for RM0.1m, with the chairman proceeding to acquire the property independently.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.077849 | 4.109407 |
| EUR | 4.802781 | 4.811175 |
| CNY | 0.580550 | 0.581565 |
| HKD | 0.523962 | 0.528035 |
| SGD | 3.162627 | 3.187313 |