Opening Daily Highlight
Local
Risk Rotation
Thu, 29-Jan-2026 07:28 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI retreated on Wednesday, easing 0.83% to close at 1,756.49, as investors engaged in profit-taking following a 4.25% cumulative gain over the past five sessions, ahead of the US Federal Reserve’s policy decision. Most sectors closed lower, led by Technology (-2.37%) and Energy (-1.44%), while Healthcare (+1.95%) emerged as the biggest gainer for the day.

 

Global Markets. Wall Street closed mixed overnight, with the S&P 500 edging lower (-0.01%) from record highs and the Dow Jones flat (+0.02%), as investors digested the Fed’s decision to keep rates unchanged and awaited guidance from Chair Jerome Powell. In contrast, the Nasdaq rose 0.17%, supported by AI-led tech strength ahead of key megacap earnings, while gold climbed to fresh record highs amid dollar weakness and expectations of future rate cuts. In Europe, the STOXX Europe 600 fell 0.75%, snapping a two-day winning streak. Asian equities closed mixed, with South Korea hitting a fresh record high on strong gains in chip and battery stocks and improved trade sentiment, while China and Hong Kong advanced on firmer commodity and energy prices. Japan was mixed, weighed by a stronger yen and selective sector selling.

 

Market Outlook. We expect the FBM KLCI to trade with a positive bias, supported by regional fund rotation as outflows from Indonesia reallocate into alternative ASEAN markets, with Malaysia emerging as a key beneficiary given its clearer regulatory framework. While foreign investors were net sellers in the previous session, selling pressure has moderated, with foreign flows turning positive over the past three weeks, a marked improvement from RM22.3bn net outflows in 2025. We believe this trend is likely to continue, supported by stronger market transparency, earnings growth expectations and valuations below historical levels. That said, sentiment may remain measured as investors await Fed Chair Jerome Powell’s guidance on the timing of future rate cuts. While AI-led strength in US technology stocks and record gold prices point to expectations of eventual easing, markets are digesting Apple’s earnings released overnight, which may influence broader global risk appetite and spill over into local market direction.

 

Sector focus.We like MYR-denominated Consumer Products and Services, supported by a strengthening ringgit that boosts domestic purchasing power. We also like utilities and renewable energy, underpinned by the ongoing clean energy transition and structural AI-driven demand for power infrastructure.

Sentiment: Negative
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 3.933829 3.961479
EUR 4.698393 4.703614
CNY 0.567464 0.568085
HKD 0.503784 0.507349
SGD 3.099708 3.121871