Malaysian Market Review. The FBM KLCI fell (-0.55%) to 1,699.02 on Tuesday as investors squared positions ahead of the long holiday period amid heightened tensions following new US strikes against Iran, undermining hopes of a new deal. Market breadth was also negative with 689 decliners against 421 advancers. Sector-wise, Technology (+0.96%) and Telecommunications & Media (+0.38%) led gains, while Utilities (-1.56%), Healthcare (-1.44%) and Consumer (-1.05%) were the main laggards. Malaysian markets were closed on Wednesday for Hari Raya Haji.
Global Markets: Wall Street marginally rose on Wednesday with the Dow Jones (+0.36%), S&P500 (+0.02%), and NASDAQ (+0.07%) eking out gains. Europe’s STOXX 600 Index rose marginally by 0.03% as investors continued to assess declining oil prices and the latest updates from the US-Iran conflict (CNBC). In Asia, the Nikkei 225 was little changed at +0.01% while the KOSPI (+2.25%) and SET (+1.13%) Index led gains in the region. (CNBC).
Market Outlook. The FBM KLCI is expected to trade with a cautious but mildly positive bias as investors return from the Hari Raya Haji break, tracking the modest gains on Wall Street and firmer regional markets. While sentiment may have been assuaged by declining oil prices, upside could remain capped by lingering uncertainty over the US-Iran conflict. Iranian state television reported that it had obtained a draft of an early, unofficial framework for a memorandum of understanding between Iran and the United States. Under the proposed framework, Iran would return commercial shipping through the Strait of Hormuz to pre-war levels within one month, while the United States would pull back military forces from areas near Iran and lift its naval blockade. Meanwhile the White House has denied the Iranian state media report, labeling it as a “complete fabrication.”
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 FBM KLCI remained under pressure and has slipped back into its consolidation pattern after failing to sustain above the earlier breakout level, suggesting near-term momentum has weakened. Nevertheless, the broader uptrend remains intact as the index continues to hold above its rising long-term trendline and SMA120. Immediate support is seen at 1,690, while resistance stands at 1,720.
Company News
The High Court on Monday granted Berjaya Group Bhd leave to challenge the additional assessment of RM428.04 million imposed by the Inland Revenue Board for the years 2018 to 2023. (The Edge)
Hong Leong Bank Bhd said on Tuesday its net profit grew nearly 9% in the recently-ended quarter thanks mostly to lower taxation and interest income. (The Edge)
UOA Development Bhd’s first-quarter earnings dropped by 43.3% due to lower development revenue recognition and the absence of one-off gains logged in the previous quarter. (The Edge)
Hong Leong Financial Group Bhd said its net profit in the recently-ended quarter rose nearly 5% from a year earlier, helped by lower taxations amid a drop in income. (The Edge)
CIMB Group Holdings Bhd posted a slightly lower net profit of RM1.916 billion in the first quarter, compared with RM1.973 billion a year earlier, as higher non-interest income was not enough to offset lower net interest income for the period ended March 31, 2026. (The Edge)
Eastern & Oriental Bhd achieved record high annual revenue and profit for the financial year ended March 31, 2026, driven by robust property sales momentum and higher contributions from ongoing and newly launched developments. (The Edge)
TIME dotCom Bhd posted a more than 5% increase in net profit for the first quarter, driven by higher revenue and improved margins, partially offset by higher foreign exchange losses, lower interest income, and weaker contributions from associates and jointly controlled entities. (The Edge)
Padini Holdings Bhd said it will continue to implement cost-control measures after its third-quarter earnings were dragged down by higher operating expenses, including increased depreciation and service tax on rental and other costs following the expansion of the sales and service tax scope last July. (The Edge)
Sime Darby Property Bhd posted a 34% rise in net profit for the first quarter thanks to paper gains and stronger recurring income. (The Edge)
PPB Group Bhd’s net profit for the first quarter ended March 31, 2026 fell 37.73%, dragged by weaker contributions from its 18.8%-owned associate Wilmar International Ltd and softer performance across its core business segments. (The Edge)
IHH Healthcare Bhd posted a 3% increase in net profit for the first quarter, driven by higher inpatient and daycase volumes as well as a greater number of complex cases treated. (The Edge)
LBS Bina Group Bhd’s net profit fell 39.67% to RM17.03 million for the quarter ended March 31, 2026 (1QFY2026) from RM28.23 million a year ago, weighed down by slower activity in property development. (The Edge)
Oriental Kopi Holdings Bhd posted a 9% earnings growth in the recently-ended quarter thanks to a boost from new outlets, though margins shrank from higher costs. (The Edge)
Sunway Bhd posted a net profit of RM9.4 billion for the first quarter ended March 31, 2026, thanks to whopping RM9.1 billion fair value gain from the listing of Sunway Healthcare Holdings Bhd. (The Edge)
UEM Edgenta Bhd returned to profit in the first quarter and said its shares will be suspended from trading from June 12 to support its selective capital reduction and repayment exercise ahead of privatisation by UEM Group Bhd, a unit of Khazanah Nasional Bhd. (The Edge)
Electronics manufacturing services firm EG Industries Bhd's net profit rose 75.7% to RM22.11 million for the third quarter from RM12.59 million a year earlier, boosted by higher profit margins. (The Edge)
SkyWorld Development Bhd concluded its recent financial year on its weakest footing since its 2023 listing, weighed by lower margins, unrealised foreign exchange losses and higher costs. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.955678 | 3.983535 |
| EUR | 4.617050 | 4.621850 |
| CNY | 0.585177 | 0.585795 |
| HKD | 0.504786 | 0.508370 |
| SGD | 3.095618 | 3.117454 |