Market Review & Outlook
Malaysia Market Review: The FBM KLCI fell 0.68% on Thursday as risk-off sentiment weighed on market, with 909 counters declining as the index extending losses for a second consecutive session. Lower liners also closed broadly weaker. Sector-wise, REITs (+0.30%) were the sole gainer, while Technology (-3.78%) and Energy (-2.02%) led the declines.
Global Markets. Wall Street extended its decline on Thursday, with the Dow (-1.20%), S&P 500
(-1.23%) and Nasdaq (-1.59%) pressured by a tech sell-off and softer labour market signals. European equities also closed lower as investors digested regional earnings. Asian markets were mostly weaker, with the Nikkei 225 (-0.88%) and Shanghai Composite (-0.64%) falling amid a global tech and metals rout, while the Hang Seng (+0.14%) edged higher, supported by gains in property, tech and consumer stocks after China’s tax authorities dismissed speculation over potential industry-wide tax adjustments.
Market Outlook. Global sentiment remains cautious as signs of labour market softening in the US, including 108,435 layoffs announced in January and job openings falling to their lowest level since 2020, have reinforced expectations of potential Fed rate cuts, while the ongoing tech sell-off tied to AI valuation concerns continues to drive equity volatility. This has spilled into regional markets and weighed on local sentiment, prompting sector rotation and profit-taking following the recent rally, with selling seen across utilities, industrials, healthcare, construction and energy, while financials remain relatively resilient and selective yield plays provide some support. Against this backdrop, the FBM KLCI is expected to trade range-bound, with the 1,730 level likely to serve as a near-term psychological anchor.
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: Selling pressure intensified as the FBM KLCI recorded its second consecutive daily decline while forming a bearish marubozu candlestick. Indicators turned mixed, with the MACD line trading below 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)
Berjaya Food Bhd reduced its net loss by two-thirds to RM11.98 million for its second quarter ended Dec 31, 2026 (2QFY2026), from a net loss of RM35.33 million a year ago.
Farm Price Holdings Bhd, which debuted on the ACE Market less than two years ago, is now eyeing a transfer to the Main Market of Bursa Malaysia.
Haily Group Bhd has secured a RM48.21 million contract to build double-storey houses in Taman Impian Emas, Skudai, Johor.
HI Mobility Bhd has secured a contract worth over RM78 million for intracity bus services in Johor.
Keyfield International Bhd has signed an US$18 million (RM70.7 million) shipbuilding contract for a new dynamic positioning anchor-handling tug supply (AHTS) vessel.
KJTS Group Bhd said its proposed acquisition of Malakoff Utilities Sdn Bhd (MUSB), announced a year ago, has fallen through. The acquisition of the energy-efficient cooling unit of Malakoff Corp Bhd officially lapsed after two conditions precedent were not fulfilled by the extended long stop date of Feb 3.
Sunview Group Bhd has proposed a diversification of its principal activities to include solar power generation, a sector it expects to account for over 25% of its future net profit.
Timberwell Bhd's new largest shareholder Wong Wai Foo has triggered a conditional mandatory takeover offer at 90 sen per share after acquiring an additional 7.9% in the timber group.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.936531 | 3.964160 |
| EUR | 4.650602 | 4.655557 |
| CNY | 0.568745 | 0.569356 |
| HKD | 0.503871 | 0.507428 |
| SGD | 3.087824 | 3.109854 |