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Risk-On Rally Emerges
Tue, 10-Feb-2026 07:51 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI started the week on a strong note, surging 1.07% on broad-based strength, in line with the positive performance of regional peers. Market breadth was positive, with 812 advancers outpacing 343 decliners as lower liners followed suit. Sector-wise, Technology (+3.70%), Industrial Products (+1.46%) and Consumer (+1.44%) led gains while Construction (-0.52%) and Telecommunications (-0.17%) were the only laggards.

 

Global Markets. US equities extended their rebound on Monday following a volatile prior week, with the Dow (+0.04%) staying above the 50,000 mark. The S&P 500 rose 0.47%, while the Nasdaq gained 0.90%, supported by a recovery in select technology names. Upcoming earnings from major corporates, including Coca-Cola and Ford, are expected to further shape near-term market rotation and sentiment across sectors. In Europe, the STOXX 600 rose 0.70%. Risk-on sentiment spilled over into Asian equities, with the Nikkei 225 (+3.89%), Thailand’s SET (+3.46%) and the Shenzhen Composite (+2.17%) closing firmly higher. 

 

Market Outlook. We expect the FBM KLCI to trade on a firmer footing today, supported by positive sentiment in line with firm domestic growth momentum. Investor focus will turn to this week’s 4Q25 GDP data for further insights into the strength of the economy and the policy outlook. Externally, attention will also be on a series of key US macro releases, including non-farm payrolls, the unemployment rate and the core CPI index, which could offer greater clarity on the Federal Reserve’s policy trajectory. Continued foreign inflows, alongside sustained positive sentiment, should underpin demand for large-cap defensives and earnings-visible names, particularly within the financials, utilities and selected technology sectors.

 

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 closed higher to maintain its momentum above all moving averages. Indicators remained mixed, with the MACD line trading below the signal line while the RSI remained above 50. The next resistance is located at 1,800, while support is envisaged around 1,685.     

 

 

Company News (source: various)

Malaysian Pacific Industries Bhd’s net profit for the quarter ended Dec 31, 2025 (2QFY2026) rose by 42.6% to RM57.09 million versus RM40.03 million a year earlier, due to higher sales volume of its high-value semiconductor products and better margins.

 

CSC Steel Holdings Bhd doubled its net profit for the full year ended Dec 31, 2025 (FY2025) to RM69.44 million from a year earlier, on the back of lower raw material costs and favourable exchange rates.

 

Kinergy Advancement Bhd has entered into a long-term virtual power purchase agreement with Safran Landing Systems Malaysia Sdn Bhd, a unit of France-based Safran Group.

 

Insights Analytics Bhd has signed a memorandum of understanding with Hong Kong-listed 51WORLD Digital Twin Technology Co Ltd to adopt its technology solutions.

 

Lithuanian artist Ernest Zacharevic is suing AirAsia, and its investment holding company Capital A Bhd, for copyright infringement over the unauthorised use of his famous artwork, Kids on Bicycle, on the company’s aircraft.

 

TMC Life Sciences Bhd logged a net profit of RM6.56 for 2QFY2026 versus net loss of RM947,000 a year earlier.

 

Foodie Media Bhd is collaborating with WTM Media Sdn Bhd to co-develop and commercialise next-generation digital and e-sports media content, effective Feb 9 for an initial one-year term with an option to extend.

 

Boustead Heavy Industries Corporation Bhd's shares have been suspended from trading on Monday until 5pm on Tuesday (Feb 10), pending a material announcement to Bursa Malaysia.

 

British American Tobacco (M) Bhd’s net profit for the fourth quarter ended Dec 31, 2025 (4QFY2025) more than doubled to RM121.2 million from RM48.97 million a year earlier, on the back of the retail price hike of its cigarette brands and higher shipment volumes.

 

 

Sentiment: Positive
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