Malaysian Market Review: The FBMKLCI edged lower (-0.72%) to 1,727.71 on Monday, reversing earlier gains as late-session selling pressure and weaker regional market sentiment weighed on investor risk appetite. Market breadth remained negative with 421 gainers against 840 decliners. Sector wise, Healthcare (+0.45%) and Plantation (+0.26%) led gains, while Consumer (-1.59%) and Construction (-1.45%) were the main laggards.
Global Markets: U.S. equities closed mixed on Monday, with the Nasdaq Composite (-0.51%) and S&P 500 (-0.07%) ending lower amid continued weakness in technology stocks, as investors monitored oil prices and U.S. Treasury yields against escalating Middle East tensions. Meanwhile, the Dow Jones Industrial Average (+0.32%) edged higher, supported by gains in defensive and value-oriented names (CNBC). European equities closed firmer, with the STOXX Europe 600 (+0.54%) rising as investors assessed the latest developments surrounding the U.S.–Iran conflict despite rising oil prices and rising global bond yields (CNBC). Asian markets closed mostly lower, led by the Nikkei 225 (-0.97%) and Shanghai Composite (-0.09%), amid concerns over rising bond yields and energy-driven inflation. Meanwhile, the Kospi (+0.31%) outperformed following reports that South Korean authorities reiterated readiness to stabilise markets amid heightened volatility (CNBC).
Market Outlook. We expect market sentiment to remain cautious in the near term amid escalating geopolitical tensions, elevated oil prices and weakening global growth expectations. Sentiment was further pressured after the European Union lowered its growth outlook, while uncertainty surrounding U.S.–Iran negotiations and the Strait of Hormuz continued supporting Brent crude above USD112/bbl, raising concerns over sticky inflation and a prolonged higher-for-longer rate environment. Meanwhile, President Donald Trump’s renewed tariff rhetoric and tougher stance on Iran added to broader macro uncertainty. Against this backdrop, we expect global equities to remain volatile amid elevated U.S. Treasury yields and persistent profit-taking in technology stocks. Domestically, the FBMKLCI is likely to remain range-bound pending clearer geopolitical developments and stabilisation in global risk sentiment.
Sector focus. We favour defensive and commodity-linked sectors such as Energy and Utilities amid elevated oil prices and rising geopolitical tensions. Meanwhile, Utilities should continue benefiting from resilient earnings visibility driven by ongoing data centre expansion and stable domestic demand.
FBMKLCI Technical Outlook
Technical Commentary: The benchmark FBM KLCI has broken above its Symmetrical Triangle formation, signalling potential upside towards the 1,777 level 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 the index may experience near-term pullback or profit-taking activity after the recent rally. Immediate support is pegged at 1,735.
Company News
Affin Bank Bhd reported that its net profit grew 9% in the first quarter ended March 31, 2026 (1QFY2026) to RM135.5 million from RM124.09 million in the year-ago period, driven by a surge in non-interest income and higher interest income. (The Edge)
AEON Co (M) Bhd’s net profit for 1QFY2026 surged 23% to RM83.7 million from RM68.1 million in the year-ago period, the highest in more than 13 years while revenue was flat at RM1.24 billion. (The Edge)
Cuckoo International (MAL) Bhd’s 1QFY2026 net profit fell to RM25.03 million compared with RM27.86 million (1QFY2025). (The Edge)
Sunway Construction Group Bhd kicked off the financial year ending Dec 31, 2026 (FY2026) on a strong footing, with higher contributions across all operating segments driving a sharp increase in first-quarter earnings, while the group rewarded shareholders with total dividends of 22.8 sen per share. (The Edge)
Pharmaniaga Bhd reported a 6.4% increase in 1QFY2026 net profit to RM31.5 million from RM30.25 million a year ago, driven by stronger demand for in-house manufactured products from government hospitals. (The Edge)
Sports Toto Bhd reported a 44.1% decline in 3QFY2026 net profit to RM59.1 million from RM105.7 million last year. (The Edge)
99 Speed Mart Retail Holdings Bhd’s net profit for 1QFY2026 rose 30.1% year-on-year to a record high of RM188.56 million, driven by higher sales coupled with a more favourable non-essential product mix. (The Edge)
Tan Sri Syed Mokhtar Albukhary has acquired a substantial stake in Eco World Development Group Bhd and its sister company, expanding the tycoon’s portfolio of developers. (The Edge)
Southern Score Builders Bhd said a 51%-owned unit has secured a subcontract worth RM47.52 million for infrastructure work on a data centre project. (The Edge)
Pos Malaysia Bhd posted a net loss of RM19.5 million for 1QFY2026, compared with RM41.5 million the year before. (The Edge)
Capital A Bhd posted a net profit of RM22.45 million for the first quarter, marking its sixth consecutive quarter in the black. (The Edge)
Malakoff Corporation Bhd has secured operational extensions for two of its gas-fired power plants in Lumut, Perak, that have a combined capacity of 1,732MW. (The Edge)
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.961158 | 3.992051 |
| EUR | 4.624816 | 4.628475 |
| CNY | 0.584313 | 0.584780 |
| HKD | 0.506067 | 0.509508 |
| SGD | 3.096608 | 3.117662 |