Market Review & Outlook
Malaysia Market Review: The FBM KLCI to closed 0.32% lower, due to profit taking activities in heavyweight counters such as CDB, Maybank and HLFG. Market breadth was slightly negative, with 562 decliners outpacing 520 advancers. Sector-wise, Transportation & Logistics (+1.21%), REIT (+0.39%) and Property (+0.33%) led gains while Telco & Media (-1.18%), Healthcare (-0.63%) and Finance (-0.49%) were the main laggards.
Global Markets. Wall Street ended lower as the Nasdaq dropped 2.03%, the S&P 500 slid 1.57% and the Dow fell 1.34%, led by steep losses in large-cap tech and software names. Heavyweights like Apple and Cisco led the decline, with Cisco tumbling 12% on a gloomy profit outlook, while broader sentiment was further pressured by a resilient labour market that has dampened hopes for near-term Federal Reserve rate cuts. European equities closed modestly lower, with the STOXX 600 declining 0.49%, as the UK economy expanded by a subdued 0.1% in 4Q2025, constrained by weaker business investment and soft consumer spending. Asian markets were mixed with South Korea’s KOSPI surging 3.13% and the Shenzhen Composite Index gaining 0.86%, while Japan’s Nikkei 225 edged down 0.02% following a three-day rally.
Market Outlook. Profit-taking on the FBM KLCI is likely to persist today as sentiment remains fragile amid elevated external volatility and policy uncertainty. However, downside risks should be contained by a resilient labour market, with US initial jobless claims easing by 5,000 week-on-week to 227,000, slightly above market expectations of 222,000. Domestically, attention will turn to Malaysia’s 4Q2025 GDP growth print, while externally, markets will closely monitor the US Core CPI release for clearer signals on the monetary policy path. Meanwhile, sustained foreign inflows and continued rotation into Asian markets should help cushion weakness, supporting large-cap defensives and earnings-visible names, particularly within 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 1,775, while support is envisaged around 1,725.
Company News (source: various)
Maxis Bhd’s net profit for the fourth quarter ended Dec 31, 2025 (4QFY2025) grew 18% year-on-year (y-o-y) to RM380 million, thanks to higher service revenue and cost control. Revenue for the quarter rose 3.8% y-o-y to RM2.88 billion.
Johor Plantations Group Bhd’s net profit for 4QFY2025 rose 9.1% y-o-y to RM87.86 million, while quarterly revenue grew 5.4% to RM489.82 million, as a dip in crude palm oil (CPO) prices moderated earnings growth.
SKP Resources Bhd's net profit for the third quarter ended Dec 31, 2025 (3QFY2026) fell 37% to RM16.13 million, on softer sales volumes.
CI Holdings Bhd’s net profit for the second quarter ended Dec 31, 2025 (2QFY2026) dropped 72% y-o-y to RM9.62 million, weighed by adverse foreign exchange and lower palm olein prices.
Hextar Industries Bhd is acquiring a 51% stake in Woodpeckers Group, the master franchisee of the llaollao frozen yogurt chain in Malaysia, for RM177.5 million cash.
GDB Holdings Bhd said its wholly owned subsidiary Grand Dynamic Builders Sdn Bhd has obtained a favourable High Court judgment against KSK Land Sdn Bhd, which is in liquidation, to recover amounts owed for works on the 8 Conlay project.
Malayan Flour Mills Bhd’s partly-owned Dindings Poultry Development Centre Sdn Bhd will seek a judicial review at the High Court after the Competition Appeal Tribunal dismissed its appeal against a RM70 million fine by Malaysia Competition Commission (MyCC) for its involvement in a chicken feed cartel.
Steel Hawk Bhd has bagged a three-year underwater services contract from PETRONAS Chemicals Methanol Sdn Bhd.
Critical Holdings Bhd has secured a RM34.97 million contract to build a cleanroom production floor at a manufacturing plant in the Batu Kawan Industrial Zone, Penang, for an undisclosed US-based multinational corporation.
Disclaimer
The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.
Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.
| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.886963 | 3.918421 |
| EUR | 4.635698 | 4.640805 |
| CNY | 0.565163 | 0.565876 |
| HKD | 0.497416 | 0.500985 |
| SGD | 3.083888 | 3.106101 |