Opening Daily Highlight
Local
KLCI Tempered by Profit-Taking
Wed, 07-Jan-2026 07:47 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI declined 0.47% to close at 1,672.35 on Tuesday amid profit-taking, despite firm regional cues. However, market breadth remained positive, with 625 gainers outpacing 504 decliners. On a sectoral basis, Technology (+1.27%), Property (+1.23%) and Construction (+1.07%) outperformed, while Industrial Products (-0.76%), Healthcare (-0.45%) and Telecommunications & Media (-0.37%) were the main laggards.

 

Global Markets Review: Wall Street closed higher overnight, with the Dow (+0.99%), S&P 500 (+0.62%) and Nasdaq (+0.65%) extending the bullish start to 2026. Tech stocks led the gains, supported by AI-related rollout at CES in Las Vegas, including Nvidia’s Vera Rubin superchip and AMD’s Helios system. Amazon, Micron and Broadcom were among the notable winners. In Europe, STOXX 600 (+0.58%) and FTSE 100 (+1.18%) closed higher, led by InPost (+26.8%) on an acquisition proposal, while semiconductor, defence and pharmaceutical stocks supported the broader market. Asian markets were mixed, with Japan’s Nikkei (+1.32%) and South Korea’s Kospi (+1.52%) rising on defence sector gains amid geopolitical tensions, while Hong Kong’s Hang Seng advanced (+1.38%) on broad-based buying.

 

Market Outlook. We expect the FBM KLCI to trade with a mild positive bias following the previous session’s profit-taking, supported by positive momentum from US markets. Investor focus remains on US monetary policy expectations and the upcoming US nonfarm payrolls report on Friday, which could influence global risk sentiment. Buying interest in the local market is likely to be guided by supportive global cues, recent geopolitical developments in Venezuela, and continued optimism in selected sectors, particularly technology.

 

Sector focus. We maintain a positive view on selected power-ancillary and renewable energy stocks, underpinned by stable demand and long-term energy transition initiatives. Consumer staples continue to offer defensiveness, supported by resilient domestic consumption and upcoming government financial assistance. We are also constructive on technology stocks, driven by sustained global demand for AI-related solutions and digitalisation trends. 

 

FBMKLCI Technical Outlook

 

Technical Commentary: The FBM KLCI retreated as profit-taking emerged near key resistance levels. 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)

Capital A Bhd said Bursa rejected its request for more time to distribute AirAsia X Bhd shares, but the group plans to do so alongside AAX’s private placement, which has been extended until Jan 19 to complete the placement, acquire AirAsia Aviation Group Ltd, and grant subscription options.

 

AirAsia X Bhd saw Tune Group Sdn Bhd sell 66.8 million shares, or nearly a 15% stake, to Nuodingyan Travel Service Sdn Bhd at RM1.80 per share, reducing its holding below 33% to avoid triggering mandatory takeover obligations.

 

Theta Edge Bhd’s largest shareholder, Lembaga Tabung Haji, sold its entire 27.28% stake to Stealth Solutions Sdn Bhd at a 23.3% premium to the previous close, marking its exit from the ICT solutions firm.

 

HSS Engineers Bhd confirmed that its 30%-owned associate, HSS Integrated Sdn Bhd, is being sued by MEX II sukuk holders for alleged breaches of duty in approving interim payment certificates, with claims for liability, damages, interest, and legal costs.

 

IGB Bhd has proposed a one-for-two bonus issue of up to 679.07 million new shares, with the entitlement date to be determined and completion expected in the first quarter of 2026 once all necessary approvals are obtained.

 

Mega Fortris Bhd has decided to drop its plans for a new playing card plant in Macau and will instead expand its existing Shah Alam facility with a second production line, reallocating RM45 million of IPO proceeds for the new line, a Macau warehouse, and working capital.

 

Master Tec Group Bhd announced that Tenaga Nasional Bhd has exercised an option to increase the value of its existing cable supply contract by RM32.86 million, raising the total contract value to RM142.4 million.

 

ICT Zone Asia Bhd’s unit has secured a RM27.8 million purchase order to lease ICT hardware and software, including laptops, printers, projectors, and other devices, to a government agency over a 60-month period.

 

Destini Bhd has redesignated Datuk Seri Dr Shahril Mokhtar as group managing director, effective immediately, just a month after he joined the board as an executive director.

Sentiment: Neutral
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