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KLCI at Fresh High
Tue, 27-Jan-2026 07:46 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI extended its rally on Monday, surging 1.40% to close at a fresh seven-year high of 1,744.07, driven by strong buying interest in blue-chip stocks from both local institutions and foreign investors. Sectoral performance was mixed, with Finance (+1.89%) and Consumer (+1.62%) leading gains, while Technology (-1.78%) and Utilities (-0.86%) were the main laggards.

 

Global Markets. Wall Street ended higher on Monday, led by gains in the Dow (+0.64%), S&P 500 (+0.50%) and Nasdaq (+0.43%), as markets looked ahead to the Fed decision and key Big Tech earnings, supported by a softer dollar and strong haven demand that pushed gold above USD5,000/oz. In Europe, the STOXX Europe 600 rose 0.20%, as investors positioned ahead of a busy earnings week, while sentiment remained cautious amid renewed US-Canada trade tensions. Asian markets closed mixed, with China edging lower on regulatory efforts to cool the equity rally and continued weakness in technology stocks, while Japan’s Nikkei 225 fell 1.79% amid yen strength, and the KOSPI declined 0.81% ahead of the US rate decision and amid heightened geopolitical tensions involving Iran.

 

Market Outlook.Investor focus remains on the US Federal Reserve’s policy outlook on 29 January, with markets widely expecting rates to be kept unchanged at 3.50%-3.75% at the upcoming meeting, while attention centres on guidance on the timing of the next rate cut. Domestically, we expect FBM KLCI to trade with a mildly positive bias, supported by continued foreign fund inflows and a firmer ringgit, which has helped underpin overall market sentiment. Market attention will also turn to a heavy slate of Big Tech earnings, including results from Microsoft, Meta and Tesla on 28 January, followed by Apple on 29 January. Guidance from these Magnificent Seven heavyweights, particularly on AI-related spending, cloud demand and margin trends, is expected to be a key driver shaping risk appetite across regional markets.

 

Sector focus.We favour domestic-oriented defensives, particularly consumer staples, which are likely to remain in focus as a stronger ringgit helps preserve purchasing power and lower input costs, while utilities and renewable energy should continue to be supported by ongoing domestic reforms and policy tailwinds.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed a bullish candle and broke above the 1,725 resistances with solid momentum. 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)

Ekovest Bhd’s proposed RM1.2bn acquisition of a 70% stake in Credence Resources Bhd lapsed after its final extension deadline expired on Jan 26, 2026, following nine extensions since 2023. The deal involved new Ekovest shares issued at 60 sen each, with no reason disclosed for the lapse.

 

DKSH Holdings (Malaysia) Bhd will seek minority shareholders’ approval for its selective capital reduction and repayment (SCR) as part of its RM249.1m privatisation exercise. The controlling shareholder is offering RM6.15 per share to take the group private.

 

T7 Global Bhd said the KLIA Terminal 1 baggage handling system upgrade has been delayed to 4Q2028 from the original December 2025 target, citing operational constraints at a live airport. The project was awarded in 2022 under a consortium with Siemens Logistics.

 

Eco-Shop Marketing Bhd recorded a nearly 16% YoY increase in 2QFY26 net profit to RM61.9m, driven by margin expansion from higher pricing and better product mix. The group declared an unchanged dividend of 0.5 sen per share, payable on Feb 26.

 

Paradigm REIT posted a marginal QoQ increase in 4QFY2025 NPI to RM41.7m, supported by higher rental income and electricity cost savings. Revenue rose 4.4% QoQ, and a DPU of 4.1 sen was proposed.

 

PGF Capital Bhd saw 3QFY2026 net profit fall to RM4.6m despite higher revenue, mainly due to mark-to-market losses on cross-currency swaps and foreign exchange losses.

 

Malton Bhd signed an MOU with China’s Dongguan Benling Vehicle Technology to explore electric motorcycle assembly and distribution in Malaysia, marking a move into green mobility.

 

Steel Hawk Bhd proposed a one-for-two bonus issue of warrants involving up to 245.3m warrants with a five-year tenure and an exercise price of 17 sen. Full exercise could raise up to RM41.7m for working capital.

 

Industronics Bhd’s independent non-executive chairman Datuk Leong Sir Ley became a substantial shareholder after acquiring a 6.3% stake, making him the fourth-largest shareholder.

 

Coastal Contracts Bhd said a consortium led by its Mexican joint venture secured an emergency contract from Pemex to design and build a gas sweetening plant at the Ixachi Field to reduce gas flaring, with work already underway.

Sentiment: Positive
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