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Cautious Trade as FBM KLCI Slips
Wed, 11-Feb-2026 07:50 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI pared earlier advances to close 0.21% lower, despite foreign investors recording a third consecutive day of net inflows. Market breadth was slightly positive, with 563 advancers outpacing 546 decliners. Sector-wise, Healthcare (+2.42%), Construction (+1.46%) and Telco and Media (+1.26%) led gains while Consumer (-0.86%), Utilities (-0.55%) and Industrial Products (-0.40%) were the main laggards.

 

Global Markets. US equities closed mixed on Tuesday, with the Dow rising 0.10% to a third consecutive record close above 50,000. However, the Nasdaq declined 0.59% and the S&P 500 fell 0.33%, weighed down by losses in large-cap technology names such as Nvidia and Alphabet. December retail sales were flat month-on-month, undershooting expectations and signalling a slowdown in consumer spending. The softer data increased market expectations for Federal Reserve rate cuts later in the year, with a growing majority of traders now pricing in lower rates by June. In Europe, the STOXX 600 edged down 0.07% as investors remained cautious amid ongoing political uncertainty in the UK, with Prime Minister Keir Starmer facing mounting pressure from lawmakers following policy U-turns and renewed controversy over the appointment of Peter Mandelson as US ambassador. However, Asian markets closed higher with the Nikkei 225 (+2.28%), Hang Seng Index (+0.58%) and KOSPI (+0.07%) ending in positive territory.

 

Market Outlook. Profit-taking on the FBM KLCI is likely to persist today as sentiment remains fragile amid heightened geopolitical and policy uncertainties. Domestically, attention will be on Malaysia’s unemployment data for cues on the economic outlook, while externally, focus will shift to key US releases, including non-farm payrolls and the unemployment rate, for further clarity on growth and policy direction. Nevertheless, continued foreign inflows and rotation into Asia should help limit downside, supporting large-cap defensives and earnings-visible names, particularly financials, utilities and selective technology stocks.

 

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 and REITs sector remains favourable for its stable earnings visibility and attractive dividend yields.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI closed lower, forming a bearish candlestick, suggesting a mild selling pressure. Indicators remained mixed, with the MACD line trading below the signal line while the RSI remained above 50. The next resistance is located at 1,770, while support is envisaged around 1,725.     

 

Company News (source: various)

Boustead Heavy Industries Corporation Bhd has received a RM149.59 million privatisation deal from controlling shareholder Boustead Holdings Bhd via a selective capital reduction and repayment exercise at 48 sen per share.

 

Petron Malaysia Refining & Marketing Bhd warned of a financial hit from a continuing force majeure event at its Port Dickson refinery.

 

Hartalega Holdings Bhd’s net profit for the third quarter ended Dec 31, 2025 (3QFY2026) rose 62% to RM31.64 million from RM19.51 million a year earlier, as tax credit offset a 29% year-on-year slump in revenue to RM527.25 million.

 

Hong Leong Industries Bhd’s net profit for the second quarter ended Dec 31, 2025 (2QFY2026) rose 6.1% to RM137.26 million from RM129.43 million a year earlier, supported by a stronger sales mix and lower raw material costs from a firmer ringgit.

 

Sam Engineering & Equipment (M) Bhd’s net profit for 3QFY2026 dropped 61% to RM12.21 million from RM31.34 million a year earlier, weighed down by softer demand in the semiconductor sector and unfavourable foreign exchange movements.

 

Tomei Consolidated Bhd's net profit for the financial year ended Dec 31, 2025 (FY2025) surged nearly 80% to RM106.82 million from a year earlier, amid favourable gold price movements.

 

Teo Seng Capital Bhd's net profit for 4QFY2025 nearly halved to RM33.52 million from RM64.9 million a year earlier, following the removal of the government egg subsidy.

 

Celcom Digi Bhd announced its board has confirmed the appointment of Albern Murty as the group's chief executive officer.

 

Axiata Group Bhd has appointed its current chief financial officer, Nik Rizal Kamil Nik Ibrahim Kamil, as group chief executive officer and managing director, effective June 1, 2026.

 

Iskandar Waterfront City Bhd is disposing of a parcel of vacant land measuring 16.43 acres in Plentong, Johor Bahru, to WB Southern Sdn Bhd for RM71.55 million.

 

Exsim Hospitality Bhd has proposed to diversify into construction works as well as centralised procurement of building materials and household appliances, a move that the company expects to contribute at least a quarter of its net profit in the future.

 

MISC Bhd has clinched a landmark chartering contract from ExxonMobil PNG Ltd to supply a floating storage and offloading (FSO) unit in Papua New Guinea.

 

JS Solar Holding Bhd has teamed up with independent power producer Nur Power Sdn Bhd, a 51%-owned unit of UEM Group’s green industries arm UEM Lestra Bhd, to explore a collaboration on solar rooftop renewable energy projects, including battery energy storage systems, within Kulim Hi-Tech Park in Kedah.

 

UUE Holdings Bhd has secured two subcontracts related to pipe installation for power cables valued at RM67.5 million.

 

TechStore Bhd has secured another contract worth RM54.79 million, just a day after announcing a major contract win.

 

Sentiment: Negative
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