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Global
KLCI Starts 2026 Lower
Mon, 05-Jan-2026 07:54 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI fell 0.6% to close at 1,669.8 on Friday, the first trading day of the year, as profit-taking in selected heavyweights weighed on the market. Market breadth was negative, with 593 decliners outpacing 447 advancers. Among sectors, REIT (+1.0%), Property (+0.3%), Transportation & Logistics (+0.1%) and Utilities (+0.1%) contributed positively, while Industrial Products (-0.8%), Healthcare (-0.7%), Plantation (-0.7%) and Finance (-0.6%) were the main laggards.

 

Global Markets Review: Wall Street closed mixed, with the Dow (+0.7%) and S&P 500 (+0.2%) ending four-day losing streaks, while the Nasdaq (-0.03%) dipped slightly due to weakness in selected technology heavyweights. In Europe, stocks opened the year at record highs, led by technology and defence; the STOXX 600 rose 0.7% and the FTSE 100 briefly hit 10,000 points for the first time. In Asia, markets were mostly positive, with Hang Seng (+2.8%) and South Korea’s KOSPI (+2.3%) surging, boosted by Samsung Electronics, education stocks, and AI chip firm Shanghai Biren. Japan’s Nikkei and mainland Chinese markets remained closed for the holidays. 

 

Market Outlook. The FBM KLCI is expected to trade cautiously in the near term, supported by stable domestic fundamentals while remaining sensitive to global developments. Markets will remain focused on US monetary policy and upcoming economic data, while geopolitical risks remain elevated following recent US actions in Venezuela. With Venezuela’s oil production accounting for less than 1% of global supply, the immediate impact on energy markets should be limited, although headline-driven volatility cannot be ruled out. 

 

Sector focus. We remain positive on selected power-ancillary and renewable energy stocks, supported by consistent demand and long-term energy transition trends. We also favour certain consumer staples, underpinned by steady domestic consumption and forthcoming cash assistance by the government. Meanwhile, oil & gas counters may see some near-term volatility, tracking movements in global oil prices following recent US actions in Venezuela.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI opened 2026 lower, indicating selling interest near the resistance zone. Indicators remained positive, with the MACD line trading above the signal line and the RSI remaining above 50. The next resistance is located at 1,700, while support is envisaged around 1,640.     

 

Company News (source: various)

Pekat Group Bhd has secured a RM113.3 million contract via its 60%-owned unit, EPE Switchgear (M) Sdn Bhd, to supply 11kV motorised ring main units and related equipment to Tenaga Nasional Bhd over a two-year period.

 

ENRA Group Bhd will undertake a RM101.26 million residential development in Kulai, Johor through its unit, Hamptons Homes Sdn Bhd, under joint venture agreements, with the project expected to commence in 1Q26 and be developed over 36 months per phase.

 

Go Hub Capital Bhd has proposed a private placement to raise up to RM21.2 million, primarily to fund new railway and terminal projects, as well as working capital and related expenses.

 

Theta Edge Bhd saw a 27.28% stake change hands via an off-market transaction at a 23% premium, signalling a potential exit by its largest shareholder, Lembaga Tabung Haji, pending official disclosure.

 

Omesti Bhd has a new largest shareholder after Teguh Sedaya Sdn Bhd increased its stake to 22.57%, overtaking founder Datuk Mah Siew Kwok.

 

Suria Capital Holdings Bhd has appointed Datuk Ahmad Rizal Dahli as its new group managing director, effective Jan 1, 2026, following the expiry of the previous managing director’s contract.

 

Vetece Holdings Bhd has secured a RM12.6 million contract to provide human capital management cloud software to a local utility company, with earnings contribution expected over the four-year contract period.

Sentiment: Neutral
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