Market Review & Outlook
Malaysia Market Review: The FBM KLCI closed 0.3% higher, extending gains for a fourth consecutive session, supported by improving local market sentiment amid a firm domestic macroeconomic backdrop. Gains were led by financial heavyweights, reflecting renewed confidence in earnings resilience and balance-sheet strength, while sentiment was further underpinned by year-end portfolio rebalancing by local institutional investors.
Global Markets Review: Wall Street ended mixed after delayed US labour data painted a mixed picture, with signs of job market cooling offset by resilient hiring. Strength in selected AI- and EV-related tech names, led by Tesla’s record close, supported the Nasdaq even as the Dow and S&P 500 declined amid uncertainty over the Fed’s 2026 rate path. European markets were largely subdued as risk appetite remained muted ahead of a pivotal US employment report and a packed week of central bank meetings. Asian markets extended losses, tracking Wall Street lower amid positioning ahead of US jobs and inflation data and renewed concerns over a potential AI-driven tech bubble.
Market Outlook. We expect the FBM KLCI to trade range bound to mildly softer today as cautious global sentiment persists following mixed US labour data and weakness across Asian markets. Lower oil prices, which have fallen to a four-year low amid supply glut concerns, may continue to weigh on energy counters. That said, we believe downside should be cushioned by defensive interest in high dividend and domestic oriented stocks, supported by stable local macro conditions and ongoing institutional year-end rebalancing, with the index likely to hover around the 1,650 level. Attention will be on the US inflation print on 18 December and the Bank of Japan’s policy decision on 19 December, which are expected to influence expectations for the Fed’s policy path into 2026 and drive global risk sentiment.
Sector focus. We remain positive on selective power-ancillary and renewable energy names, underpinned by long-term energy transition trends that support earnings resilience and continued investor rotation amid heightened global trade uncertainty. Meanwhile, ongoing year-end institutional rebalancing is likely to favour locally oriented and defensive sectors such as banks, REITs and consumer staples.
Technical Commentary: The FBM KLCI extended its advance for a fourth consecutive session, closing nearer to the 1,660 resistance. 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)
Velesto Energy Bhd will sell its jack-up rig Naga 3 for US$63.0m (RM258.4m) as part of a fleet optimisation exercise, booking a pro forma gain of RM17.1m. Of the proceeds, RM251.1m will be allocated for shareholder distribution, corporate purposes and working capital, with utilisation targeted by Dec 2026.
Genting Malaysia Bhd has been awarded a casino licence by the New York State Gaming Commission, alongside Bally’s Bronx and Hard Rock Metropolitan Park, following a unanimous vote. The approval concludes a decade-long process, with projects required to meet community commitments.
UWC Bhd reported 1QFY26 net profit of RM17.1m, more than double YoY, driven by a 35.1% increase in revenue to a record RM120.8m on stronger semiconductor orders and contributions from subsidiaries.
Apollo Food Holdings Bhd posted a 30.0% YoY decline in 2QFY26 net profit to RM7.5m, due to weaker sales and higher costs, while revenue slipped 2.7% YoY to RM75.3m.
Cypark Resources Bhd recorded a 2QFY26 net loss of RM15.5m, compared with a profit a year earlier, as weaker construction contributions weighed on results.
PTT Synergy Group Bhd secured a RM35.9m earthworks and ancillary works contract from Sime Darby Property Bhd for the Bandar Bukit Raja Business Park in Klang. The project will commence in Jan 2026 and is targeted for completion by Sept 2027.
Carimin Petroleum Bhd won a RM34.0m contract from Petronas Gas Bhd to replace a gas pipeline linked to the Putra Heights explosion.
Mesiniaga Bhd secured a RM19.8m contract from the Ministry of Education to lease IT equipment for schools in northern Sarawak. The 65-month lease-to-use contract runs from Jan 2026 to May 2031, with no automatic renewal.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.073855 | 4.107406 |
| EUR | 4.789363 | 4.795370 |
| CNY | 0.580525 | 0.581256 |
| HKD | 0.523855 | 0.527658 |
| SGD | 3.153953 | 3.176981 |