Malaysian Market Review: The FBM KLCI fell (-0.50%) to 1,708.36 on Thursday, extending its losing streak to seven sessions amid cautious sentiment and continued foreign outflows. Market breadth remained negative with 512 gainers against 652 decliners. Sector-wise, Technology (+3.09%) and Utilities (+0.53%) led gains, while Energy (-1.97%) and Telecommunications & Media (-1.62%) were the main laggards.
Global Markets: U.S. equities closed marginally higher on Wednesday, with the Dow Jones Industrial Average (+0.55%) hitting a record high, while the S&P 500 (+0.17%) and Nasdaq Composite (+0.09%) edged higher amid optimism over potential US-Iran de-escalation and support from Nvidia’s earnings (Yahoo. Finance). European equities were broadly flat, with the STOXX Europe 600 (+0.04%) weighed by inflation and geopolitical concerns. (CNBC). Meanwhile, Asian markets closed mixed, led by gains in the Nikkei 225 (+3.14%) and Kospi (+8.42%), while the Hang Seng Index (-1.03%) and Shanghai Composite (-2.04%) lagged on lingering China growth concerns (Reuters).
Market Outlook. We expect near-term market sentiment to remain cautious amid elevated geopolitical uncertainties and still-elevated bond yields, although easing oil prices and improving optimism surrounding potential U.S.-Iran negotiations may provide some support to risk appetite. Brent crude and WTI eased to USD103/bbl and USD98/bbl, respectively, following reports of potential progress in negotiations through Pakistani mediation, while Secretary of State Marco Rubio also cited “some good signs” towards a possible resolution. Nonetheless, market volatility may persist given lingering inflationary and geopolitical risks. Against this backdrop, we expect rotational interest into defensive and yield-driven sectors to continue, while technology sentiment may remain selective amid ongoing AI-related volatility. Domestically, we expect the FBM KLCI to remain range-bound amid cautious regional sentiment and continued foreign fund outflows.
Sector focus. We favour Utilities on continued data centre-related investments, while remaining selective on Technology amid ongoing AI-related volatility. Meanwhile, Energy sentiment may soften following the recent pullback in crude oil prices.
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
PETRONAS Chemicals Group Bhd swung to a profit after four straight quarters in the red. (The Edge)
Genting Bhd's net profit jumped more than 20-fold to RM101.1 million in 1QFY2026 from RM4.6 million in 1QFY2025, driven by lower impairment losses and a swing in share of results from joint ventures and associates. (The Edge)
Telekom Malaysia Bhd’s net profit fell 19.87% to RM321.51 million for 1QFY2026 from RM401.26 million a year earlier, weighed down by a one-off writedown of RM127.3 million for unutilised prepaid 5G capacity. (The Edge)
DRB-Hicom Bhd’s net profit more than doubled to RM45 million in 1QFY2026 from RM17.72 million a year earlier, driven by stronger contributions from its mobility, postal and banking segments, underpinned by higher sales and improved cost efficiency. (The Edge)
MNRB Holdings Bhd, the national reinsurer and takaful firm, posted new all-time high earnings in the recently ended financial year thanks to record revenue and lower claims. (The Edge)
Kossan Rubber Industries Bhd’s net profit rose 11% to RM39.53 million in 1QFY2026 from RM35.62 million a year earlier, as lower tax expenses offset a decline in revenue. (The Edge)
Petron Malaysia Refining & Marketing Bhd said its Port Dickson refinery, which has been shut since the collapse of its product jetty during Tropical Storm Senyar in November last year, is expected to resume full operations by the first quarter of 2027 upon completion of a new jetty. (The Edge)
Bumi Armada Bhd’s net profit fell 78% to RM40.1 million from RM182.77 million, dragged by lower contributions from two floating production storage offloading (FPSO) vessels, including the Armada Kraken. (The Edge)
Dayang Enterprise Holdings Bhd expects stronger financial and operational performance in the coming quarters after posting a 74.8% jump in first-quarter earnings, supported by higher vessel utilisation and more intensive offshore activity execution. (The Edge)
Dagang NeXchange Bhd swung back to profitability in 1QFY2026 to RM12.78 million, versus a net loss of RM79.04 million a year earlier, driven mainly by a turnaround in its semiconductor division and improved earnings from its information technology (IT) segment. (The Edge)
Mi Technovation Bhd’s net profit climbed 74% to RM30.98 million for 1QFY2026 from RM17.8 million a year ago, thanks to cost control and sale of higher-margin products. (The Edge)
Convenience store chain operator 7-Eleven Malaysia Holdings Bhd’s 1QFY2026 net profit more than halved to RM4.72 million from RM10.63 million a year ago, as it incurred higher costs due to business expansion that offset the revenue growth seen from its new store openings. (The Edge)
KPJ Healthcare Bhd’s net profit rose 22.1% to RM69.6 million in 1QFY2026 from RM57.1 million a year ago, boosted by higher patient visits and surgeries as well as an improved after-tax share of profits from associates.(The Edge)
Kerjaya Prospek Group Bhd’s net profit rose 24% to RM57.34 million in 1QFY2026 compared to RM46.07 million a year earlier, as higher property sales offset lower construction billings. (The Edge)
Duopharma Biotech Bhd is seeking alternative sources of inputs to reduce concentration risks amid ongoing supply chain disruptions linked to the Iran war. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.944524 | 3.976284 |
| EUR | 4.601627 | 4.606454 |
| CNY | 0.581937 | 0.582543 |
| HKD | 0.503652 | 0.507204 |
| SGD | 3.085855 | 3.107667 |