Malaysian Market Review: The FBM KLCI closed marginally higher by 0.11% to 1,758 on Thursday, supported by banking heavyweights after Bank Negara Malaysia maintained the overnight policy rate (OPR) at 2.75%. Market breadth was positive with 678 gainers against 566 decliners. Sector wise, Finance (+1.17%), Consumer (+0.97%) and Technology (+0.64%) led gains, while Energy (-2.40%), Industrial products (-1.57%) and Construction (-1.21%) were the main laggards.
Global Markets: U.S. equities closed lower overnight, with the Nasdaq Composite (-0.13%) and S&P 500 (-0.38%) retreating from intraday record highs, while the Dow fell 0.63%, as investors locked in gains following the recent AI-led rally while sentiment turned cautious amid renewed uncertainty surrounding U.S.–Iran negotiations and volatile oil prices (CNBC). Oil prices eased, with Brent crude (-1.19%) to USD100.1/bbl and WTI crude (-0.28%) to USD94.8/bbl, after reports that Saudi Arabia and Kuwait had lifted restrictions on U.S. military access, raising expectations of improved commercial shipping security through the Strait of Hormuz (Reuters). European equities also finished lower, with the STOXX 600 declining 1.10% amid profit taking following the previous session’s sharp rally, as investors continued to assess developments surrounding a potential U.S.–Iran peace agreement that pressured crude prices lower (CNBC). Meanwhile, Asian markets closed broadly higher, led by the Nikkei 225 (+5.58%), Hang Seng (+1.57%) and South Korea’s Kospi (+1.15%), supported by optimism over potential U.S.–Iran peace talks alongside renewed strength in global technology stocks (Reuters).
Market Outlook. The near-term market outlook is turning more constructive, supported by easing geopolitical tensions and improving risk appetite. Reports suggesting progress toward a potential U.S.–Iran agreement have helped reduce concerns over broader instability around the Strait of Hormuz, while the Wall Street Journal reported that Saudi Arabia and Kuwait had lifted restrictions on U.S. military access, raising expectations of improved commercial shipping security in the region. Nonetheless, geopolitical risks remain elevated after three U.S. Navy destroyers reportedly came under missile and drone attacks while transiting the Strait of Hormuz, although U.S. officials confirmed that no American assets were damaged, while President Donald Trump warned that military action could intensify should negotiations fail. Meanwhile, oil prices have retreated from recent highs, helping to ease energy-driven inflation concerns and potentially reducing pressure on the Federal Reserve’s higher-for-longer policy stance. Overall, the FBM KLCI is expected to remain supported in the near term, although sentiment will continue to track geopolitical developments, oil price movements and earnings sustainability.
Sector focus. We favour Technology in the near term, supported by sustained AI-driven demand and renewed strength in semiconductor stocks. Energy may continue to see trading interest amid ongoing crude oil volatility linked to Strait of Hormuz developments, while Plantation remains supported by firmer CPO prices and improving biofuel-linked demand.
FBMKLCI Technical Outlook
Technical Commentary: The benchmark KLCI index has staged a breakout above its symmetrical triangle formation, signalling further upside towards 1,777 and confirming a continuation of the broader uptrend following a three-month consolidation phase. However, the formation of an inverted hammer candlestick near the recent high suggests that the index may experience a near term pullback or profit-taking activity after the recent rally. Immediate support is pegged at 1,735.
Company News
SD Guthrie Bhd saw its net profit for the first quarter ended March 31, 2026 (1QFY2026) slip to RM560 million from RM567 million a year earlier amid weaker earnings from its upstream plantation business. (The Edge)
Datuk Abdul Rahman Ahmad has returned to Sime Darby Bhd as its non-independent nonexecutive chairman, effective immediately. (The Edge)
CIMB Group Holdings Bhd has appointed outgoing Standard Chartered Malaysia chief executive officer Mak Joon Nien as the regional lender’s CEO of growth markets and CIMB Singapore, subject to regulatory approval. (The Edge)
AirAsia X Bhd has signed a firm order with Airbus Canada Ltd Partnership valued at roughly US$19 billion (RM74.3 billion) at list prices for 150 A220-300 aircraft. (The Edge)
Lotte Chemical Titan Holding Bhd narrowed its net loss to RM122.7 million for the first quarter ended March 31, 2026 (1QFY2026) compared with RM125.7 million a year earlier, supported by improved margins in its olefins and derivatives segment, coupled with higher reversal of inventory write-downs to net realisable value. (The Edge)
Pavilion Real Estate Investment Trust reported an 11.3% rise in net property income (NPI) to RM158.93 million in 1QFY2026 from RM142.75 million a year earlier, driven by contributions from newly acquired hotel assets and stronger performance of its retail properties. (The Edge)
Pentamaster Corp Bhd saw its net profit for 1QFY2026 climb 37.28% to RM17.94 million from RM13.07 million in the same period a year ago, thanks to a surge in revenue at its factory automation solutions business. (The Edge)
Hard disk drive (HDD) component maker Dufu Technology Corp Bhd reported a 9.44% increase in first-quarter net profit, attributed to higher sales as a stronger ringgit squeezed margins. (The
Edge)
Maybulk Bhd swung to a net loss of RM52.92 million in 1QFY2026 from a net profit of RM3.16 million a year earlier, mainly due to a RM54.03 million currency translation loss arising from the liquidation of a foreign subsidiary. (The Edge)
GuocoLand (Malaysia) Bhd posted a net loss of RM6.21 million for its third quarter ended March 31, 2026 (3QFY2026) — its first quarterly net loss in four years — compared to a net profit of RM1.83 million a year earlier, mainly due to a RM7.2 million inventory write-down for its PJ City project. (The Edge)
Gold miner Niche Capital Emas Holdings Bhd is exploring a partnership with local rare earth firm Greensnow Consolidated Bhd to build a full rare earth supply chain covering mining, processing and infrastructure development. (The Edge)
Practice Note 17 (PN17) company Reneuco Bhd will be delisted from the Main Market of Bursa Malaysia on May 12 after the regulator dismissed its appeal for more time to submit a regularisation plan. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.893647 | 3.925131 |
| EUR | 4.598352 | 4.603288 |
| CNY | 0.574671 | 0.575299 |
| HKD | 0.497318 | 0.500839 |
| SGD | 3.076865 | 3.098931 |