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FBM KLCI Dips on Middle East Tensions
Tue, 10-Mar-2026 08:20 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI fell (-2.55%) on Monday, tracking widespread selling across regional markets as escalating tensions in the Middle East dampened investor sentiment and heightened concerns over global inflation. Market breadth was sharply negative, with 1,137 decliners outpacing 287 advancers. Sector-wise, most sectors ended in the red, except for Plantation (+2.32%) and Energy (+1.44%), which recorded gains.

Global Markets. Wall Street closed higher on Monday, with the Dow (+0.50%), Nasdaq (+1.38%) and S&P 500 (+0.83%) rebounding from earlier losses as investor sentiment improved following remarks by US President Donald Trump suggesting the conflict with Iran could be nearing its end. Meanwhile, oil prices retreated to around the low-$90s per barrel after briefly surging to nearly $120 per barrel earlier in the day (CNBC). In Europe, the STOXX 600 (-0.63%) closed lower, with most regional bourses and sectors ending in negative territory (CNBC). Asian equities closed broadly lower, led by declines in the Nikkei 225 (-5.20%), Hang Seng (-1.35%), and Shenzhen Composite (-0.74%).

Market Outlook. Global market sentiment remains sensitive to developments in the Middle East conflict, though signs of potential de-escalation have provided some relief to financial markets. US President Donald Trump indicated that the war with Iran may be nearing completion and that military progress is “far ahead” of initial projections. Oil prices, which previously surged above $120 per barrel, have moderated amid reports amid reports that the US is taking steps to ensure adequate oil supply and lower costs, including waiving certain oil-related sanctions. Meanwhile, the Group of Seven (G7) nations also discussed the possibility of coordinated strategic reserve releases, though no decision has been made for now. Against this backdrop, markets are likely to remain volatile and headline-driven as investors monitor geopolitical developments and policy responses aimed at stabilising global energy prices and inflation expectations.

Sector focus. Pivot towards export-oriented sectors amid heightened geopolitical risks and currency volatility. USD-linked exporters may benefit from ringgit weakness, supporting earnings translation. Meanwhile, banking and REITs remain attractive for their resilient earnings visibility and stable dividend yields.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI has breached its prevailing uptrend line and the key support zone of 1,685–1,690, signalling a potential shift in near-term sentiment. As a result, the index may enter a pullback phase, with downside risk towards the Fibonacci 38.2% retracement level of 1,640–1,625. That said, a decisive close back above the uptrend line today could suggest that yesterday’s breakdown was a false signal.

 

Company News (source: various)

NexG Bhd announced that its executive director Datuk Chong Loong Men has resigned effective March 8 due to personal reasons, amid a boardroom tussle following Raya Aviation Holdings emerging as the company’s largest shareholder. (The Edge)

Maju Holdings Sdn Bhd and its founder Tan Sri Abu Sahid Mohamed have filed a counterclaim seeking for CIMB Group Holdings Berhad’s investment arm and other parties to cover any liability they may face in a RM1.38b lawsuit brought by MEX II highway sukuk holders. (The Edge)

Cypark Resources Bhd will proceed with the expansion of its waste-to-energy plant in Ladang Tanah Merah, Port Dickson after securing government approval and signing a supplementary concession agreement for Phase 2 development. (The Edge)

PPB Bhd and Malayan Flour Mills Bhd units have secured leave to commence judicial reviews against fines imposed by the Malaysia Competition Commission for price-fixing, with ad interim stay orders granted pending further hearings. (The Edge)

OM Holdings Ltd declared a special dividend of one Australian cent per share following its exit from the manganese mining business in South Africa, with Bursa Malaysia shareholders receiving the equivalent of about three sen per share. (The Edge)

Velesto Energy Bhd plans to establish a sukuk wakalah programme with a combined limit of up to RM1b to support investments, capital expenditure, working capital and refinancing activities. (The Edge)

Advancecon Holdings Bhd secured a RM148.4m contract to undertake earthworks and infrastructure works for Phase 1B of the Southern Ibrahim Technopolis (IBTEC) project in Kulai, Johor. (The Edge)

ES Sunlogy Bhd’s 60% owned Singapore unit secured three electrical works contracts worth S$20.23m (RM62.5m) covering residential developments, educational facilities and building installations in Singapore. (The Edge)

Farm Fresh Bhd appointed Datuk Quaza Nizamuddin A Hassan Nizam as its new chairman with immediate effect, succeeding the previous leadership following his appointment as an independent director in September 2021. (The Edge)

Berjaya Corp Bhd founder Tan Sri Vincent Tan Chee Yioun disposed of a 5.25% stake, or 306m shares, in the group for RM79.6m through a direct business transaction, reducing his total stake to about 21%. (The Edge)

An independent adviser recommended minority shareholders of DKSH Holdings (Malaysia) Bhd to accept the proposed RM6.15 per share privatisation offer, describing the proposal as “not fair but reasonable”. (The Edge)

Timberwell Bhd’s independent adviser recommended shareholders accept the 90 sen per share takeover offer from its largest shareholder Wong Wai Foo, deeming the proposal reasonable despite being below the company’s revalued net asset value. (The Edge)
 

Sentiment: Neutral
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Market Mover
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Currency Buy Rates (RM) Sell Rates (RM)
USD 3.945191 3.976996
EUR 4.573958 4.578808
CNY 0.571807 0.572405
HKD 0.504979 0.508544
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