Malaysian Market Review: The FBMKLCI fell -0.29% on Wednesday, breaking its 4 days winning streak as regional investors took a breather. Market breadth was negative, with 584 decliners outpacing 565 advancers. Sector wise, Energy (+1.89%), Plantation (+0.85%) and Healthcare (+0.64%) led gains, whilst Finance (-0.84%), Consumer (-0.50%) and Telecommunications & Media (-0.32%) lagged.
Global Markets: U.S. equities rallied sharply, with the S&P 500 (+1.05%) and Nasdaq Composite (+1.64%) closing at record highs, while the Dow Jones Industrial Average (+0.69%) also advanced, as sentiment improved following Donald Trump’s decision to extend the U.S.–Iran ceasefire alongside continued strength in corporate earnings. Despite ongoing geopolitical tensions, including disruptions in the Strait of Hormuz, investors looked past near-term risks, supported by resilient fundamentals and strong earnings delivery, with over 80% of companies beating expectations. The Communication Services and Information Technology sectors are driving market momentum with massive earnings surprises of 61.2% and 19.4%, respectively. Oil prices climbed, with Brent crude surpassing $100/bbl amid supply concerns, though market focus remained firmly on earnings momentum. European markets continued to edge lower, with the Stoxx 600 down 0.35% as investors weighed the ceasefire extension against persistent geopolitical risks and rising inflationary pressures, particularly in Germany and the U.K. Meanwhile, Asian markets were mixed, with gains in the Shenzhen Composite Index (+1.30%) and Nikkei 225 (+0.40%) offset by declines in the Hang Seng Index and SET Index, reflecting a more cautious regional tone.
Market Outlook. We expect the FBM KLCI to trade on a cautious, range-bound footing in the near term, as yesterday’s pullback and negative market breadth signal a pause in momentum despite resilience in energy and plantation stocks. While elevated Brent crude may continue to support energy-related counters, weakness in financials and consumer names could cap broader index upside. Externally, sentiment remains mixed, with strong gains in U.S. markets led by the S&P 500 and Nasdaq Composite underpinned by robust earnings, offset by lingering geopolitical risks in the Strait of Hormuz and softer European performance. As such, we expect local equity market to remain selective, with potential rotation into defensives and commodity-linked plays, while overall sentiment stays headline-driven in the near term.
Sector focus. We favour Technology in the near term, supported by improving risk appetite, regional tech strength and sustained digitalisation trends, with momentum likely to remain intact given their recent outperformance. Utilities may also continue to see interest as a defensive play amid heightened geopolitical uncertainty, offering earnings visibility and stability. Conversely, Transportation & Logistics could remain under pressure amid rising fuel costs linked to firmer Brent crude, while Industrial Products and Healthcare may trade more sideways as investors rotate towards sectors with clearer earnings momentum. Overall, we expect sector rotation to persist, with investors favouring large-cap, earnings-supported and defensive names, while remaining selective amid external volatility and evolving geopolitical developments.
FBMKLCI Technical Outlook
Source: Bloomberg
Technical Commentary: The FBM KLCI has moved back above its uptrend line, indicating a potential recovery in trend. The bullish bias is expected to persist as long as the index holds above this level. Conversely, failure to sustain could lead to renewed selling pressure. Key support is seen at 1,700, with a break below likely to reinforce bearish momentum.
Company News
PETRONAS Chemicals Group Bhd said it will prioritise domestic customers over export markets in 2026, as the petrochemicals producer moves to safeguard local supply amid volatility from the West Asia conflict and another year of challenging operating conditions. (The Edge)
Rising costs are weighing on margins even as higher palm oil prices offer some relief, United Plantations Bhd flagged after reporting a weaker first quarter. (The Edge)
JAG Capital Bhd, formerly KUB Malaysia Bhd, is divesting its entire 30% equity interest in Sarawak-based oil palm operator Sinong Sepadu Sdn Bhd for RM44.3 million, citing strategic differences with its joint venture partner. (The Edge)
Samchem Holdings Bhd, an integrated chemicals and lubricants distributor, is leasing industrial land in Johor Bahru to build a bulk liquid storage terminal to expand capacity. (The Edge)
Kumpulan Jetson Bhd is disposing of its adhesives and healthcare trading businesses for RM15.8 million, as the group presses ahead with a portfolio rationalisation plan to sharpen its focus on its core automotive anti-vibration parts operations. (The Edge)
Willowglen MSC Bhd has secured a maintenance contract worth RM12 million from Singapore-based SP PowerAssets Ltd. (The Edge)
CapitaLand Malaysia Trust posted a 14.7% year-on-year rise in its first-quarter net property income (NPI), driven by contributions from industrial and logistics assets acquired in 2025, stronger performance across selected retail properties and lower operating costs. (The Edge)
AmFirst Real Estate Investment Trust (REIT) is positive on weathering pressures ahead, after it posted a 5% year-on-year (y-o-y) rise in net property income (NPI) for its latest closed fiscal year. (The Edge)
AME Real Estate Investment Trust reported a 28.9% increase in net property income (NPI) for the fourth quarter, driven by contributions from newly acquired properties and higher rental rates from tenancy renewals. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.937236 | 3.968982 |
| EUR | 4.641226 | 4.646163 |
| CNY | 0.578698 | 0.579317 |
| HKD | 0.502965 | 0.506516 |
| SGD | 3.093620 | 3.115441 |