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Thu, 21-May-2026 07:21 am
by Research Team • Apex Research

Malaysian Market Review: The FBM KLCI extended its losing streak to six consecutive sessions, (-0.55%) to 1,717.69 on Wednesday amid cautious global risk sentiment and lingering geopolitical uncertainties. Market breadth remained negative with 374 gainers against 832 decliners. Sector-wise, Plantation (+0.46%) and Industrial products (+0.21%) led gains, while Telecommunications & Media (-1.96%) and Utilities (-1.61%) were the main laggards.

 

Global Markets: U.S. equities closed higher on Wednesday, with the Nasdaq Composite (+1.54%), Dow Jones Industrial Average (+1.31%) and S&P 500 (+1.08%) advancing as oil prices and U.S. Treasury yields eased amid optimism over a potential de-escalation in Middle East tensions, while investors positioned ahead of Nvidia’s earnings release (CNBC). European equities also ended higher, with the STOXX Europe 600 (+1.46%) supported by easing yields and softer-than-expected U.K. inflation, which came in at 2.8% in April (CNBC). Meanwhile, Asian markets closed broadly lower, led by the Nikkei 225 (-1.23%), as elevated bond yields and oil prices continued to fuel inflation concerns, while profit-taking in technology stocks weighed on the Kospi (-0.86%) and Hang Seng Index (-0.57%) ahead of Nvidia’s earnings. The Shanghai Composite (-0.18%) was relatively resilient compared to regional peers (CNBC).

 

Market Outlook. We expect near-term market sentiment to remain cautiously constructive following the pullback in U.S. Treasury yields and easing concerns over Middle East tensions. The U.S. 10-year Treasury yield eased towards 4.58%, while the 30-year yield retreated closer to 5.0%, providing temporary relief to global equities. Meanwhile, U.K. inflation moderated to 2.8% in April, below expectations, reinforcing hopes for a more flexible monetary policy outlook in Europe. However, market volatility could persist despite easing oil prices, with Brent crude settling at USD105.02/bbl and WTI at USD98.26/bbl following optimism surrounding potential U.S.-Iran negotiations. Against this backdrop, we expect rotational trading into defensive and commodity-linked sectors to persist, while technology sentiment may remain volatile ahead of further clarity on earnings and bond yield direction. Domestically, we expect the FBM KLCI to remain range-bound amid cautious regional sentiment and mixed foreign fund flows.

 

Sector focus. We continue to favour Energy and Utilities, supported by resilient crude oil prices and ongoing data centre-related investments, while remaining selective on Technology amid continued volatility and profit-taking in AI-linked stocks. 

 

FBMKLCI Technical Outlook

Technical Commentary: The benchmark FBM KLCI has recently broken above its Symmetrical Triangle formation, 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 1,700.

 

Company News 

Batu Kawan Bhd, through its wholly-owned subsidiary Whitmore Holdings Sdn Bhd, has agreed to acquire a combined 47.7% stake in MKH Bhd for RM549.8 million, or RM2 a share, from the Chen family. (The Edge)

 

Mr DIY Group (M) Bhd’s net profit for the first quarter ended March 31, 2026 (1QFY2026) rose 10.3% y-o-y to a record high of RM192.02 million from RM174.15 million a year earlier, as stronger margins, festive spending and a larger store network lifted earnings. (The Edge)

 

IGB Bhd’s net profit for 1QFY2026 surged more than fivefold to RM501.98 million from RM89.07 million a year ago, thanks mainly to a one-off disposal of the group's UK-based assets in the hotel segment. (The Edge)

 

Genting Plantations Bhd’s net profit for 1QFY2026 rose 11% to RM68.1 million from RM61.3 million a year earlier, supported by stronger fresh fruit bunch (FFB) output and improved contribution from its property division. (The Edge)

 

UEM Sunrise Bhd’s net profit for 1QFY2026 dropped 20.9% RM16.2 million from RM20.49 million a year earlier, mainly due to lower land sales. (The Edge)

 

S P Setia Bhd’s net profit for 1QFY2026 more than halved to RM31.12 million — its lowest since 3QFY2021 — dragged by higher foreign exchange losses despite logging higher revenue. (The Edge)

 

VSTECS Bhd’s net profit for 1QFY2026 rose 28.9% to RM22.88 million from RM17.75 million a year earlier, driven by stronger demand for AI-related data centre infrastructure projects and higher purchases ahead of anticipated price increases. (The Edge)

 

Sarawak Plantation Bhd’s net profit for 1QFY2026 rose 2.05% to RM23.09 million from RM22.63 million a year earlier, despite lower earnings from its oil palm operations, thanks to a higher gain from change in the fair value of biological assets. (The Edge)

 

Solarvest Holdings Bhd posted its best full-year performance since listing, as net profit surged 53.7% y-o-y to RM79.81 million for the financial year ended March 31, 2026 (FY2026), driven by stronger utility-scale solar project contributions and higher profit sharing from associates. (The Edge)

 

Gamuda Bhd has secured contracts worth over RM3 billion to build two solar power plants in Australia. (The Edge)

 

Bina Darulaman Bhd’s wholly-owned unit, BDB Infra Sdn Bhd, has bagged a RM251.7 million road maintenance project from the Kedah state government. (The Edge)

 

Kerjaya Prospek Group Bhd has secured two contracts worth RM102.6 million for construction works at Andaman Island, Penang. (The Edge)

 

Bumi Armada Bhd has secured full operating interest in the Jalu Working Area in the North Sumatra Basin, Indonesia. (The Edge)

 

ITMAX System Bhd’s 65%-owned subsidiary Southmax Sdn Bhd has bagged a RM79.9 million variation order to undertake the deployment of additional smart traffic light controllers across the Iskandar Puteri area. (The Edge)

 

EXSIM Hospitality Bhd has secured a RM45 million contract from AmFIRST Real Estate Investment Trust to redevelop Summit Hotel USJ in UEP Subang Jaya, Selangor, into a 17-storey hotel with three basement levels. (The Edge)

 

Matrix Concepts Holdings Bhd has concluded an industrial land sale to Golog Holdings Sdn Bhd to incorporate cold chain infrastructure into its MVV City development within the Malaysia Vision Valley 2.0 corridor. (The Edge)

 

Insas Bhd said its wholly-owned units, Insas Plaza Sdn Bhd and Insas Technology Bhd, have sold 100 million shares in Inari Amertron Bhd for RM186 million, trimming the investment group’s stake in the outsourced semiconductor assembly and test provider to 9.67%. (The Edge)

 

Meta Bright Group Bhd said it is acquiring a 70% stake in TTOP Industrial & Engineering Sdn Bhd for RM9.29 million, marking the group’s expansion into higher-margin electrical engineering work.(The Edge)

 

Telekom Malaysia Bhd said three former employees at its US subsidiary, Telekom Malaysia (USA) Inc, who were charged by the US Department of Justice over an alleged fraud scheme involving about US$20 million (RM79.5 million), had been dismissed in February for breaches of integrity and business ethics.(The Edge)

Sentiment: Neutral
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Market Mover
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Currency Buy Rates (RM) Sell Rates (RM)
USD 3.953306 3.984027
EUR 4.594538 4.602818
CNY 0.582675 0.583138
HKD 0.504615 0.508560
SGD 3.085501 3.109763