Malaysian Market Review: The FBM KLCI edged marginally lower (-0.03%) to 1,727.27 on Tuesday, weighed down by selling pressure on selected heavyweight stocks and lingering concerns over Malaysia’s April headline inflation. Market breadth remained negative with 541 gainers against 616 decliners. Sector-wise, Construction (+1.07%), Utilities (+0.77%) and Consumer (+0.64%) led gains, while Telecommunications & Media (-1.10%), Technology (-0.71%) and Energy (-0.50%) were the main laggards.
Global Markets: U.S. equities closed lower on Tuesday, with the Nasdaq Composite (-0.84%), S&P 500 (-0.67%) and Dow Jones Industrial Average (-0.65%) retreating as higher Treasury yields and firm crude oil prices weighed on risk appetite. Rising bond yields continued to pressure long-duration technology names, while AI-related and semiconductor stocks extended recent profit-taking amid persistent Middle East geopolitical tensions and elevated energy prices (CNBC). European equities ended modestly firmer, with the STOXX Europe 600 (+0.19%) supported by easing concerns over an immediate U.S. strike on Iran, although gains remained capped by sticky inflation and elevated energy costs (Bloomberg). Asian markets closed mostly lower, led by the Kospi (-3.25%) and Nikkei 225 (-0.44%), as investors turned cautious amid rising global yields and renewed inflation concerns linked to higher oil prices. In contrast, the Shanghai Composite (+0.92%) and Hang Seng (+0.26%) outperformed on improving sentiment surrounding U.S.-China trade developments, which helped stabilise broader regional risk appetite despite continued weakness in technology shares (CNBC).
Market Outlook. We expect near-term market sentiment to remain cautious as rising U.S. Treasury yields and elevated crude oil prices continue to tighten global financial conditions and pressure risk appetite. The U.S. 10-year Treasury yield rose to 4.69%, while the 30-year yield climbed above 5.18%, reinforcing concerns over a prolonged higher-for-longer Fed rate environment. Meanwhile, Brent crude remained above USD110/bbl and WTI near USD104/bbl amid persistent geopolitical uncertainty surrounding Iran and the Strait of Hormuz, keeping inflation concerns elevated and market volatility heightened. Against this backdrop, we expect continued rotation into defensive and value-oriented sectors, while sentiment toward technology and AI-linked names may remain fragile following recent profit-taking in semiconductor stocks. Within Asia, energy-importing markets such as Japan and Korea could remain vulnerable should oil prices and bond yields stay elevated for longer. Domestically, we expect the FBM KLCI to remain range-bound pending clearer geopolitical developments and stabilisation in global risk sentiment.
Sector focus. We favour Energy and Utilities amid elevated oil prices and ongoing data centre investments, while remaining cautious on Technology due to rising U.S. bond yields and recent AI-related profit-taking.
FBMKLCI Technical Outlook
Technical Commentary: The benchmark FBM KLCI has recently 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, price has since pulled back from the recent rally with a possible support around 1,735.
Company News
Trading in shares of property developer MKH Bhd and its 65.3%-owned plantation unit MKH Oil Palm (East Kalimantan) Bhd was suspended just before market close on Tuesday at the companies’ request, pending a material announcement. (The Edge)
Capital A Bhd will be uplifted from its financially distressed status, Practice Note 17 (PN17), effective Wednesday (May 20), ending its over four-year stint in the category. (The Edge)
PETRONAS Gas Bhd posted a net profit for the quarter ended March 31, 2026 (1QFY2026) to RM438.69 million from RM468.8 million a year earlier, while revenue dipped 0.6% to RM1.59 billion. (The Edge)
Maxis Bhd’s wholly-owned unit Maxis Broadband Sdn Bhd has issued RM1 billion in sukuk murabahah under its existing RM10 billion unrated programmes.(The Edge)
Velesto Energy Bhd’s net profit for the first quarter ended March 31, 2026 (1QFY2026) almost halved on lower average daily charter rates. (The Edge)
Malayan Flour Mills Bhd (MFM) saw stronger contributions from its joint ventures in the first quarter ended March 31, 2026 (1QFY2026), as it logged a 28.4% rise in net profit for the quarter. (The Edge)
Heineken Malaysia Bhd reported lower first-quarter earnings amid a softer operating environment as the group's net profit fell 14.5% to RM104.46 million from RM122.15 million a year earlier. (The Edge)
Dutch Lady Milk Industries Bhd warned that input costs may rise significantly from July onwards after the dairy company dodged the fallout from the Iran war with record revenue. (The Edge)
Kerjaya Prospek Group Bhd has won a contract worth RM174.2 million from IJM Land Bhd’s subsidiary to build a high-rise residential development in Seremban, Negeri Sembilan. (The Edge)
Fiamma Holdings Bhd’s net profit for the quarter ended March 31, 2026 (1QFY2026) fell to RM10.75 million from RM36.19 million a year earlier, mainly due to the absence of a large one-off gain recorded in the same period last year. (The Edge)
Samaiden Group Bhd reported its highest-ever quarterly net profit, driven by stronger margins from newly commenced projects as well as improved supply chain and cost management. (The Edge)
Leong Hup International Bhd’s 1QFY2026 net profit rose to RM115.03 million from RM101.8 million a year earlier, as revenue grew 2.4% to RM2.26 billion from RM2.21 billion. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.962260 | 3.990045 |
| EUR | 4.617365 | 4.622196 |
| CNY | 0.583589 | 0.584198 |
| HKD | 0.505816 | 0.509379 |
| SGD | 3.092488 | 3.114353 |