Opening Daily Highlight
Global
Markets Slide on Global Jitters
Thu, 22-Jan-2026 11:22 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: Risk-off sentiment persisted on the FBM KLCI, which declined 0.77%, as foreign investors turned net sellers following a seven-day buying streak. Market breadth was broadly negative, with 782 decliners overwhelming 301 advancers, while lower liners also ended firmly in the red. Sectoral performance was uniformly weak, led by declines in Finance (-1.78%), Technology (-1.06%) and Healthcare (-0.89%), driven largely by weakness in heavyweight names such as Hong Leong Financial Group, Hong Leong Bank and Alliance Bank.

 

Global Markets. US equities suffered their sharpest decline since October on Tuesday, with the Nasdaq plunging 2.39%, the S&P 500 falling 2.06% and the Dow Jones retreating 1.76%. Risk sentiment deteriorated after President Trump reignited trade tensions with Europe, threatening to impose a 200% tariff on French wine and champagne following French President Emmanuel Macron’s rejection of Washington’s invitation to join Trump’s proposed “Board of Peace” over Greenland. Adding to the pressure, U.S. Treasury yields surged to four-month highs amid a global bond sell-off, partly driven by weakness in Japanese government bonds. The risk-off move spilled over into Europe, where the STOXX 600 declined 0.70%, as targeted countries weighed retaliatory measures under the EU’s “Anti-Coercion Instrument,” which could restrict US access to public tenders or limit services trade where the US runs a surplus. Asian markets also closed broadly lower, with the Nikkei 225 (-1.11%), Shenzhen Composite (-0.97%) and KOSPI (-0.39%) ending in negative territory.

 

Market Outlook. Profit-taking is expected to persist on the FBM KLCI today as market sentiment remains fragile amid elevated geopolitical and policy uncertainties. Nonetheless, downside may be cushioned by a positive surprise in Malaysia’s trade balance and a benign inflation backdrop. Investors will be closely watching ECB President Christine Lagarde’s speech and the UK inflation print today for clearer signals on Europe’s economic and policy direction amid an increasingly tense global environment. Any shift in tone or data surprise could influence global risk appetite and, in turn, near-term trading sentiment on the local bourse.

Sector focus. We favour domestic-oriented and defensive sectors such as consumer, power related and renewable energy plays, which offer more resilient earnings backed by government initiatives supporting the clean energy transition and rising data centre development.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI closed higher with a bullish marubozu candlestick after three consecutive sessions of losses, suggesting renewed buying interest. Indicators remained positive, with the MACD line trading above the signal line while the RSI remained above 50. The next resistance is located at 1,750, while support is envisaged around 1,685.     

 

Company News (source: various)

Malayan Banking Bhd has set a return on equity target of 13-14% by 2030, from 11.5% currently under its new five-year plan ROAR30. 

IJM Corp Bhd refuted money laundering allegations and denied that it is being probed by the UK authorities, as the Malaysian Anti-Corruption Commission (MACC) launched investigations into allegations of a RM2.5 billion money laundering scheme involving the group. 

KKB Engineering Bhd has secured six contracts worth a total of RM80 million to supply steel pipes, fittings, poles and galvanised structural components. 

ICT Zone Asia Bhd has received a RM17.29 million purchase order to lease information and communication technology (ICT) hardware and software for a five-year period. 

Dayang Enterprise Holdings Bhd has contracted a unit of Shin Yang Group Bhd to build a maintenance work boat for RM117.7 million. 

Reservoir Link Energy Bhd has secured multiple work orders from Roc Oil (Sarawak) Sdn Bhd from 2025 until 2029. Mitrajaya Holdings Bhd said the contract awarded by the Malaysian unit of Australia’s NEXTDC Ltd has been increased to RM844.66 million from RM801.8 million announced in September last year, following a latest variation order. 

PJBumi Bhd has entered into a contract to purchase five drilling rigs as the group prepares for its upcoming oil and gas integrated project management (IPM) drilling work in Indonesia. 

LFE Corp Bhd has pulled out of a proposed subcontract worth RM11.5 million from a subsidiary of Sunway Construction Group Bhd, after both parties failed to finalise terms for a formal letter of award. 

Ancom Nylex Bhd, which produces industrial and agricultural chemicals, saw its net profit for the second quarter rise 18.94% from a year ago, even as revenue dipped to its lowest level in four years.

Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.031003 4.062281
EUR 4.731470 4.739970
CNY 0.581107 0.581571
HKD 0.516925 0.520950
SGD 3.139226 3.163884