Malaysia Market Review: The FBM KLCI rose 0.29% on Monday, supported by buying interest in selected heavyweights despite the mixed regional performance. Market breadth was positive, with 611 gainers outpacing 493 losers. Sector-wise, Healthcare (+1.11%), Technology (+0.96%) and Property (+0.87%) led gains, while Industrial Products (-1.42%), Telecommunications & Media (-0.79%) and Energy (-0.72%) were the main laggards.
Global Markets. Wall Street ended lower overnight, with the Dow (-1.66%), S&P 500 (-1.04%) and Nasdaq (-1.13%) retreating as investors reassessed the global trade outlook amid lingering uncertainty over US tariff policy. Sentiment was further weighed down by renewed concerns over AI-driven disruption, which pressured technology shares and revived volatility across growth sectors. European equities also ended lower, with the STOXX 600 (-0.45%) and the FTSE 100 (-0.02%) declining as investors remained cautious amid the European parliament’s postponement of its vote on the EU-US trade deal for a second time. In Asia, mainland China market remained closed for the Chinese New Year holidays, while the Hang Seng (+2.53%) closed higher on gains in technology, finance and consumer stocks.
Market Outlook.Global sentiment turned cautious after President Trump warned trading partners against reneging on negotiated trade deals, signalling the possibility of new licence fees following the US Supreme Court’s rejection of his emergency tariff authority. The threat of alternative tariff measures under different trade laws has heightened policy uncertainty and unsettled global markets. Against this backdrop, investors are likely to remain cautious in the near term, with regional markets susceptible to shifting US trade policies. For Malaysia, the FBM KLCI is expected to trade range-bound, with investors likely to focus on assessing upcoming corporate earnings, while persistent external uncertainties may cap near-term upside.
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, banking and REITs remain attractive given their stable earnings visibility and attractive dividend yields.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI closed higher on Monday, remaining above all major moving averages. Momentum remains mixed, with the MACD line trading below the signal line and the RSI above 50. Resistance is located at 1,775, while support is envisaged around 1,720.
Company News (source: various)
United Plantations Bhd posted its highest profit in 120 years, with FY2025 net profit rising 15% YoY to RM830 million on record CPO yields and higher prices. The group declared a total dividend of RM0.81 per share this quarter, including a 30 sen special dividend.
Sunway Construction Group Bhd reported FY2025 net profit surging 93.6% to RM361.8 million as revenue recorded RM5.34 billion, driven by advanced technology facility projects. Total dividend reached a record 50.5 sen per share this year.
Petronas Chemicals Group Bhd posted a 4QFY2025 net loss of RM754 million, marking its fourth straight quarterly loss, and warned of a challenging 2026 outlook amid weak product prices and forex losses.
TSR Capital Bhd secured a RM99 million KL–Karak Highway widening contract, with works set to begin in 2Q2026.
Gadang Holdings Bhd won a RM95.1 million highway widening job, scheduled for completion in 2H2027.
Pharmaniaga Bhd saw 4Q profit more than triple to RM7.7 million on lower costs, marking its eighth straight profitable quarter, though FY2025 earnings fell sharply due to a prior-year penalty waiver.
Kossan Rubber Industries Bhd reported 4Q net profit jumping 69% YoY to RM46.7 million, supported by improved production efficiency despite weaker revenue.
Sports Toto Bhd posted a 9.2% drop in 2QFY2026 net profit due to losses at its UK luxury car unit but declared a higher interim dividend of three sen per share.
Malaysia Smelting Corporation Bhd recorded a 32% rise in 4Q net profit to RM39.9 million, supported by higher tin prices amid global supply concerns.
Pos Malaysia Bhd reported a 4Q net loss of RM77.1 million, with full-year losses widening due to higher finance costs and structural declines in traditional mail.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.874515 | 3.905813 |
| EUR | 4.587974 | 4.592881 |
| CNY | 0.564620 | 0.565245 |
| HKD | 0.495804 | 0.499311 |
| SGD | 3.062969 | 3.084769 |