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KLCI Tracks Regional Weakness
Fri, 09-Jan-2026 07:41 am
by Research Team • Apex Research

 

Market Review & Outlook

Malaysia Market Review: The FBM KLCI fell 0.43% to close at 1,669.57 on Thursday, tracking weaker regional cues, with pockets of buying interest in selected blue-chip stocks. Market breadth was positive, with 580 advancers outpacing 489 decliners. Sector-wise, Property (+1.22%), Technology (+0.77%) and Construction (+0.59%) outperformed, while Industrial Products (-0.32%), Consumer (-0.29%) and Transportation & Logistics (-0.20%) lagged.

 

Global Markets. Wall Street closed mixed overnight, with the Dow (+0.55%) posting gains, the S&P 500 (+0.01%) finishing flat, and the Nasdaq (-0.44%) retreating. The Dow advanced on defence stocks following President Trump’s call for a 50% increase in military spending, whereas the Nasdaq fell amid caution over labour market data, profit-taking in megacap technology stocks and geopolitical uncertainty. In Europe, the Stoxx 600 (-0.19%) and FTSE 100 (-0.04%) closed lower, dragged down by losses in oil despite gains in defence stocks. In Asia, markets were mixed, with the Nikkei 225 (-1.63%) and Hang Seng (-1.17%) closing lower, weighed down by technology and materials stocks, while the Kospi (+0.03%) finished flat. 

 

Market Outlook. We expect the FBM KLCI to trade cautiously, as investors remain selective amid mixed global cues. Investors will continue to monitor global geopolitical developments, including US strategies on Venezuela and Greenland, as well as the upcoming Supreme Court ruling on Trump’s tariffs, which may contribute to market volatility. Attention will remain on Friday’s US nonfarm payrolls for clues on the Fed’s rate-cut trajectory, while mixed US labour market updates, including continued low layoffs but cooling job openings, add to the cautious sentiment.

 

Sector focus. We maintain a positive outlook on power-ancillary and renewable energy stocks, supported by stable demand and long-term energy transition initiatives. Technology stocks remain constructive, driven by global demand for AI-related solutions and ongoing digitalisation trends, although some profit-taking may occur following recent rallies. In periods of global uncertainty, we favour defensive sectors such as REITs.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI eased from its early session levels to finish lower.  Indicators turned mixed, with the MACD line trading below 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 Malaysia’s rejection of its extension request to complete the AirAsia X Bhd share distribution will not materially affect its corporate exercises, with its overall strategy unchanged and only a slight adjustment to the completion timeline.

 

Kinergy Advancement Bhd announced that a KAB-led consortium has signed an equipment supply agreement for a planned 1.5GW combined cycle gas turbine power plant in Perlis. Consortium partners include Sirage Holdings Sdn Bhd and B.Grimm Power.

 

Sunway Bhd’s unit, Sunway Treasury Sdn Bhd, has proposed a sukuk wakalah programme of up to RM10 billion to fund working capital and refinance borrowings. The programme will have a perpetual tenure, with the first issuance guaranteed by Sunway.

 

Orkim Bhd has secured a two-year marine transportation contract from Boustead Petroleum Marketing Sdn Bhd (BHPetrol), with an option for a one-year extension. The contract value was not disclosed as it depends on cargo nominations and agreed rates.

 

T7 Global Bhd has secured a work order from PETRONAS Carigali Sdn Bhd to provide integrated well plug and abandonment services and project management for the Zuhal East well. The contract runs from Nov 17, 2025 to Mar 31, 2026.

 

Insights Analytics Berhad has secured a RM58.4 million sub-contract from Bumia Sdn Bhd for pipeline, mechanical, electrical and infrastructure works for the Betong–Pusa Regional Water Supply Grid in Sarawak. The project is scheduled to run from Jan 12, 2026 to Jul 11, 2028.

 

Alam Maritim Resources Bhd has secured a RM29 million contract from Vestigo Petroleum Sdn Bhd to carry out free-span rectification works on the 60km Tembikai Non-Associated Gas pipeline offshore Terengganu.

Sentiment: Neutral
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