Market Review & Outlook
Malaysia Market Review: The FBM KLCI eased 0.31% on Wednesday on profit-taking, as investors stayed cautious amid mixed regional cues. Meanwhile, lower liners closed mixed. Sector wise, gains were led by Energy (+0.78%) and Consumer (+0.73%), while Technology (-1.44%) and Telecommunications & Media (-0.85%) were the main laggards.
Global Markets. US equities mostly declined on Wednesday, with the S&P 500 (-0.51%) and Nasdaq (-1.51%) pressured by an intensified sell-off in technology stocks, while the Dow (+0.53%) managed modest gains. Meanwhile, European equities edged higher, supported by gains in telecom and consumer stocks, which offset weakness in software shares and a healthcare-led sell-off following Novo Nordisk’s disappointing outlook. Asian markets were largely firmer. The Shanghai Composite (+0.85%) was lifted by gains in coal, airline and defence stocks alongside firmer services data, while the Hang Seng (+0.05%) saw muted upside as tech weakness offset financials strength. In contrast, Japan’s Nikkei 225 fell 0.78%, dragged lower by technology-related stocks.
Market Outlook. Global equities remain on shaky footing as persistent AI-related disruption fears continue to pressure technology stocks, triggering a rotation into value sectors and spilling over into broader markets across Europe and Asia. Sentiment has also turned cautious following softer-than-expected US private payroll data and the delay of the official January jobs report, leaving investors in wait-and-see mode on the US interest rate outlook. Against this backdrop, the FBM KLCI is likely to trade cautiously in the near term as global risk aversion continues to drive intermittent profit-taking despite limited direct exposure to global tech weakness. Nonetheless, recent consolidation could help the market build a firmer base, with the index expected to fluctuate within the 1,730–1,760 range while investors monitor external cues and macro developments.
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: The FBM KLCI gave up early advances to end in negative territory. 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 Real Estate Investment Trust reported a 23% year-on-year increase in net property income (NPI) to RM14.4 million for the third quarter ended Dec 31, 2025 (3QFY2026), from RM11.71 million a year ago, thanks to higher rental income from newly acquired properties and positive rental reversions.
Binastra Corp Bhd has secured a RM503 million contract for the proposed development of a data centre in Jalan Sri Permaisuri, Kuala Lumpur.
Fraser & Neave Holdings Bhd’s (F&N) net profit fell by one-third to RM112.2 million in the first quarter ended Dec 31, 2025 (1QFY2026), from RM169.02 million a year ago, as a weaker US dollar weighed on its operating performance, compounded by reduced finance income and a higher effective tax rate.
IOI Properties Group Bhd said it has signed a deal to sell 136 acres of land at its industrial park in Banting, Selangor to a data centre developer for RM740.68 million.
Southern Cable Group Bhd has secured an additional RM121.1 million in variation orders from Tenaga Nasional Bhd for the supply of underground power cables and conductors, raising the total value of its ongoing contract to RM524.6 million.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.918368 | 3.945933 |
| EUR | 4.642443 | 4.647936 |
| CNY | 0.566283 | 0.566897 |
| HKD | 0.501418 | 0.504963 |
| SGD | 3.081306 | 3.103266 |