Malaysia Market Review: The FBM KLCI fell 0.53% on last Thursday, due to late selling in selected heavyweights and was also in sync with regional market weakness amid elevated geopolitical uncertainty and firm oil prices. Market breadth was negative, with 679 decliners outpacing 470 advancers. Sector-wise, Industrial Products (+1.41%) and Energy (+1.28%) led gains. REITs (- 3.45%) and Utilities (-1.92%) were the main laggards with the REIT sector recently being hit by the withdrawal of a preferential withholding tax rate.
Global Markets. U.S. equities closed higher on Monday, with the Dow (+1.38%), S&P 500 (+1.15%) and Nasdaq (+1.38%) advancing as oil prices fell after President Donald Trump said he had ordered the military to postpone strikes against Iranian power plants following "productive conversations" with Tehran. However, Iran's Parliamentary Speaker had said that no talks had been held with the U.S., contradicting Trump's announcement that there were talks between the United States and Iran in the past day in which the two sides had "major points of agreement" and that a deal could be done soon to settle the war. In Europe, the STOXX 600 rose 0.60% after President Donald Trump’s statement, snapping a three-day losing streak. Earlier in the session, the stock index had fallen as much as 2.5% (Reuters). Prior to President Donald Trump’s statement, Asian markets closed lower on deepened worries over the Strait of Hormuz, with the Nikkei 225 (-3.5%), Hang Seng (-3.5%) and Shenzhen Composite (-3.76%) declining (CNBC).
Market Outlook. US equities rebounded Monday after Trump announced a 5-day pause on attacks targeting energy infrastructure, citing “talks” with Iran, following earlier threats of strikes on Iranian power plants if the Strait of Hormuz was not reopened; Iran’s Foreign Ministry denied any negotiations and maintained its stance against talks, but markets appear to be looking past the denial and focusing on near-term de-escalation. While volatility may persist, peak risk is likely behind us as markets typically price in worst-case scenarios early; in this context, Trump’s negotiation pattern—escalation, pressure, de-escalation, and eventual deal—suggests we are now in stage 3 (de-escalation/engagement). Domestically, Malaysia was shielded by the extended Hari Raya holiday, avoiding the recent global sell-off; despite ongoing external uncertainties, the local market may see near-term strength as it reopens and catches up.
Sector focus. We favour the export-oriented sectors amid current geopolitical tensions and currency volatility. Higher oil prices could support the energy and plantation sectors, while defensive yield plays such as utilities remain attractive as investors seek stability in a volatile environment.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI continues to trade above its prevailing uptrend line. This suggests that the broader bullish structure remains intact for now. As long as the index holds above the 1,695–1,700 support zone, the prevailing uptrend is likely to remain intact. A decisive break below this level would weaken the technical structure and may signal a deeper corrective phase.
Company News
Berjaya Property Bhd has appointed Johor princess Tunku Tun Aminah Sultan Ibrahim as its new non-independent non-executive chairman, filling a role that had been vacant for more than two years. (The Edge)
Yinson Holdings Bhd's net profit for the fourth quarter ended Jan 31, 2026 (4QFY2026) declined 64.5% year-on-year (y-o-y) to RM228 million, mainly on the absence of one-off gains and tax credit. (The Edge)
Poh Kong Holdings Bhd’s net profit for the second quarter ended Jan 31, 2026 (2QFY2026) surged 60.6% y-o-y to RM47.54 million, driven by stronger demand for gold investment products amid a sustained rally in global gold prices. (The Edge)
Cypark Resources Bhd’s net loss streak extended to three consecutive quarters, after it posted a net loss of RM17 million in the third quarter ended Jan 31, 2026 (3QFY2026), as compared to a net profit of RM8.76 million a year earlier. (The Edge)
Malayan Banking Bhd has disposed of its entire 19.16% stake in Alam Maritim Resources Bhd, which the lender acquired under a scheme of arrangement in September last year. (The Edge)
Maybulk Bhd, Eonmetall Group Bhd and Leader Steel Holdings Bhd are selling three adjoining parcels of industrial land in Klang, Selangor, to WG Malaysia VIII Sdn Bhd for a combined RM687.89 million. (The Edge)
Mieco Chipboard Bhd is selling 16.9 acres of land with an office, factory and warehouse in Semenyih, Selangor, to hamper services provider Jin Ye Ye Sdn Bhd for RM57 million. (The Edge)
Kenanga Investment Bank Bhd has increased its stake in digital asset exchange Kinetic DAX Sdn Bhd (KDX) to 81.7% from 19%. (The Edge)
Perdana Petroleum Bhd has proposed a RM600 million share capital reduction to eliminate the group's RM195.36 million in accumulated losses. (The Edge)
Rivertree STF Synergies Bhd plans to diversify into the management of centralised labour quarters to reduce overall earnings volatility. (The Edge)
Sorento Capital Bhd, which debuted on the ACE Market of Bursa Malaysia in October 2024, has proposed transfer its listing to the Main Market. (The Edge)
Steel Hawk Bhd has secured a call-out contract for maintenance of workshop machining for PRPC Utilities and Facilities Sdn Bhd. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.941293 | 3.973014 |
| EUR | 4.585536 | 4.590354 |
| CNY | 0.573718 | 0.574331 |
| HKD | 0.503587 | 0.507145 |
| SGD | 3.083116 | 3.104955 |