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FBM KLCI Firms Amid Wall Street Tech Weakness
Wed, 04-Feb-2026 08:30 am
by Research Team • Apex Research

Market Review & Outlook
Malaysia Market Review: The FBM KLCI advanced 0.42% on Tuesday as bargain hunting extended the market’s recovery from last week’s pullback, though upside momentum tapered off after an early high. Meanwhile, lower liners closed mixed. Sector wise, gains were led by Technology (+1.08%) and Industrial Products (+1.07%), while Construction (-2.02%) and Property (-1.20%) were the main laggards.

Global Markets. Wall Street closed lower on Tuesday, with the Dow (-0.34%), S&P 500 (-0.84%) and Nasdaq (-1.43%) retreating as investors pared exposure to technology stocks after digesting earnings. While Palantir’s stronger-than-expected results initially lifted AI sentiment, the optimism faded as tech heavyweights slid, led by Nvidia amid reports of cooling ties with OpenAI, after dissatisfaction over Nvidia’s latest AI chips stalled potential investment talks of up to USD100bn. Meanwhile, European equities edged higher as gains in commodity-linked stocks were largely offset by a sharp selloff in software and advertising names. Asian markets also ended mostly higher, led by strong gains in KOSPI (+6.84%) and Nikkei 225 (+3.92%) amid a rally in AI-related shares.

Market Outlook. Global markets remain cautious amid expectations that Kevin Warsh, President Trump’s nominee for the next Fed Chair, would avoid aggressive rate cuts. Nonetheless, President Trump’s signing of a spending bill ending the partial US government shutdown may help lift sentiment. Meanwhile, attention will turn to key earnings this week from Amazon and Alphabet. Locally, sentiment remains positive on steady buying interest and improving confidence, although risk appetite stays measured as investors monitor global monetary policy signals ahead of upcoming Purchasing Managers’ Index releases and key US macro data later in the week. We expect the FBM KLCI to trade range-bound within 1,730–1,760, with near-term consolidation likely as markets await fresh catalysts.

Sector focus. We favour the consumer sector, supported by ringgit strength that should ease imported cost pressures, alongside a tourism rebound under Visit Malaysia 2026 that is expected to lift domestic spending. Meanwhile, the banking sector remains attractive for its stable earnings visibility and resilient dividend yields.
 

FBMKLCI Technical Outlook

Technical Commentary: Early gains in the FBM KLCI were pared, though the index ended in the green. 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)
AME Elite Consortium Bhd has secured a RM214.1 million contract from KLIA Aeropolis Sdn Bhd, a subsidiary of Malaysia Airports Holdings Bhd, to build the first phase of a specialised test cell facility in Sepang.

GDEX Bhd said it is considering potential acquisitions to expand its technology services segment that has emerged as a key growth driver for the loss-making company.

GuocoLand (Malaysia) Bhd's controlling shareholder GLL (Malaysia) Pte Ltd (GLLM) has submitted a proposal to the board to privatise the property arm of the Tan Sri Quek Leng Chan-controlled Hong Leong Group via a selective capital reduction and capital repayment exercise at RM1.10 per share.

Lembaga Tabung Haji has emerged as a substantial shareholder in newly listed Orkim Bhd, further increasing institutional participation in the clean tanker operator.

MISC Bhd said it has secured a 20-year charter contract from PETRONAS LNG Ltd for three newly built liquefied natural gas (LNG) carriers.

MSM Malaysia Holdings Bhd announced on Tuesday the return of Dr Mazatul 'Aini Shahar Abdul Malek Shahar as its new group chief executive officer, effective Wednesday, Feb 4. Mazatul 'Aini, 53, previously served as MSM’s chief financial officer from December 2022 until Aug 12, 2024, before resigning to take up a CFO position at a financial institution.

Mudajaya Group Bhd said the High Court has allowed its winding-up petition against THB Power Sdn Bhd after the independent power producer again failed to make the final tranche of payment totalling RM27.9 million with interest.

Piling and foundation specialist Pintaras Jaya Bhd said it has secured a RM35.5 million subcontract to undertake construction works for a proposed bridge project in Kuching, Sarawak.

PTT Synergy Group Bhd said it has secured a RM34.05 million contract from Sime Darby Property Bhd for earthworks and ancillary works at the Bandar Bukit Raja development in Klang, Selangor.

Reservoir Link Energy Bhd has signed an initial pact with a Sabah state agency and an engineering services firm to explore development of a gas-fired power plant. 
 

Sentiment: Positive
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