Malaysian Market Review: The FBM KLCI fell (-0.24%) to 1,708.50 on Monday as investors stayed cautious heading into the final stretch of the corporate earnings season. Market breadth was also negative with 630 decliners against 442 advancers. Sector-wise, Technology (+1.37%), Transportation & Logistics (+0.16%), and Finance (+0.07%) led gains, while Industrial Products (-1.45%), REIT (-1.01%) and Telecommunications & Media (-0.96%) were the main laggards.
Global Markets: Wall Street was closed on Monday in observance of Memorial Day. Meanwhile, Europe’s STOXX Europe 600 Index rose 1.04% to close at its highest level in more than two months, fully recovering losses since the onset of the Middle East conflict, supported by growing expectations of a potential US-Iran peace deal and continued enthusiasm surrounding AI-related stocks (Reuters). In Asia, the Hang Seng Index and KOSPI were closed for Vesak Day, although regional markets generally ended higher with the Nikkei 225 rising 2.87% and the Shenzhen Component Index gaining 1.66% as optimism over a potential resolution to the Iran conflict boosted overall risk appetite (The Star).
Market Outlook. Global sentiment turned cautiously positive after crude oil prices fell 7.6% on Monday to USD96.30 amid signs of progress in US-Iran negotiations, raising hopes for an eventual end to the three-month conflict and the reopening of the Strait of Hormuz. Supporting sentiment further, US President Donald Trump said on Monday that he had urged Saudi Arabia, Qatar, Pakistan, Turkey, Egypt and Jordan to join the Abraham Accords as part of broader peace negotiations in the Middle East, while adding that discussions with Iran were “proceeding nicely” and that “It will only be a Great Deal for all or, no Deal at all.” However, uncertainty surrounding the negotiations remained elevated as Trump also warned that military action could resume should talks collapse. Investors are also expected to remain cautious ahead of the upcoming US Core PCE data, as stronger-than-expected inflation could reduce expectations for near-term Federal Reserve rate cuts. Locally, the FBM KLCI is expected to trade firmer on Tuesday in line with improved regional sentiment and lower oil prices. Investor attention is also likely to remain focused on upcoming first-quarter earnings from major Malaysian banks for clearer signals on domestic credit growth, margin resilience and consumer spending trends, while the ongoing AI-driven rally in global equities could continue to support technology-related stocks.
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: Although the FBM KLCI has retreated in recent sessions amid cautious market sentiment, we continue to view the index positively as its broader upward trend remains intact. From a technical standpoint, the recent pullback and formation of several bearish candlesticks may pave the way for a Bullish Harami pattern, suggesting that selling pressure could be easing. This may provide an early signal of a potential near-term rebound in the benchmark index.
Company News
Allianz Malaysia Bhd’s net profit rose 6.72% in the first quarter, driven by improved performance across both its general and life insurance segments. Net profit for the quarter ended March 31, 2026 increased to RM227.35 million from RM213.04 million a year earlier. (The Edge)
Axiata Group Bhd reported a 71% surge in net profit for the first quarter from a year earlier as lower costs offset a decline in revenue. (The Edge)
Bank Islam Malaysia Bhd posted an 8.9% decline in net profit for the first quarter, weighed by higher operating overheads, increased finance costs and weaker non-fund-based income.
British American Tobacco (Malaysia) Bhd posted a net loss of RM35.15 million for the first quarter ended March 31, 2026, compared with a net profit of RM23.27 million a year earlier, as revenue halved to RM160.3 million from RM322 million.
Cahya Mata Sarawak Bhd reported a 5% year-on-year decline in first quarter net profit, mainly due to the inclusion of a one-off tax credit of RM7.3 million previously.
Censof Holdings Bhd announced it has secured two contracts from the Inland Revenue Board worth a combined RM19.9 million, involving the development and enhancement of tax-related systems.
Gamuda Bhd’s proposed Weasel Solar Farm and Cellars Hill Wind Farm projects in Tasmania have been selected under Australia’s Capacity Investment Scheme, which reduces investment risk by providing a government-backed revenue safety net for up to 15 years.
IJM Land Bhd, a unit of IJM Corp Bhd, has signed a joint venture to develop a 307.17-acre industrial and commercial project in Sedenak, Johor, within the Johor-Singapore Special Economic Zone, with an estimated gross development value of RM1.96 billion.
Inari Amertron Bhd’s third quarter net profit almost halved as the group saw weaker loading volumes in its radio frequency (RF) segment and realised foreign exchange losses.
ITMAX System Bhd posted a 24.2% increase in net profit for the first quarter ended March 31, 2026, supported by stronger contributions from its digital infrastructure solutions business and improving margins amid ongoing smart city infrastructure rollouts.
Karex Bhd slipped into the red in the recently-ended quarter, as the world’s largest condom maker was hurt by US reciprocal tariffs and declining export receipts.
Kelington Group Bhd posted a 14.04% increase in first-quarter net profit to RM30.39 million from RM26.65 million a year earlier, driven by higher profit margins.
Lianson Fleet Group Bhd's first-quarter net profit surged 87.7% to RM21.33 million from RM11.37 million a year earlier, driven by higher fleet utilisation and contributions from its expanding vessel portfolio.
MBM Resources Bhd struck a cautious tone on its outlook after its first-quarter net profit fell 11%, weighed by weaker performance across all of its operating divisions amid softer automotive industry activity.
MISC Bhd said its first-quarter net profit was up 5% from a year earlier, driven by gains from the disposal of ships and higher profits from associates and joint ventures.
Oppstar Bhd has refined the delivery structure of an artificial intelligence (AI) chip development project awarded by a Yokohama-based client in March, with its wholly-owned subsidiary Oppstar Microelectronics Sdn Bhd entering into a separate US$2.9 million (RM13.6 million) design services agreement for its portion of work.
Sime Darby Bhd more than tripled its earnings in the recently ended quarter from a year earlier thanks mainly to a one-off gain from a land sale while revenue shrank.
Tenaga Nasional Bhd posted a 3.7% increase in net profit for the first quarter, driven by higher electricity demand and lower fuel costs.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.937802 | 3.969644 |
| EUR | 4.600059 | 4.604966 |
| CNY | 0.582376 | 0.582993 |
| HKD | 0.502852 | 0.506416 |
| SGD | 3.084079 | 3.105956 |