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AI Rally Lifts Global Sentiment
Wed, 03-Jun-2026 07:43 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI fell (-0.11%) to 1,683.07 on Friday (29 May) extending its losing streak to four consecutive sessions amid persistent foreign fund outflows and cautious investor sentiment. However, the market breadth turned positive, with 686 advancers against 507 decliners. Sector-wise, Healthcare (+2.00%) and Utilities (1.61%) led gains, while Energy (-0.53%) and Industrial Products (-0.26%) were the main laggards. The local stock market was closed on Monday and Tuesday in conjunction with the Yang di-Pertuan Agong's Birthday and Wesak Day replacement holiday, respectively.

 

Global Markets: Wall Street closed higher overnight, with the Dow Jones (+0.45%), S&P 500 (+0.13%) and Nasdaq (+0.03%) ending at fresh record highs as continued enthusiasm surrounding artificial intelligence (AI) outweighed concerns over ongoing Middle East tensions. Investor sentiment was supported by AI-related developments, including strong gains in semiconductor and technology names (CNBC). In Europe, the STOXX 600 (+0.66%) rebounded broadly, supported by resilient earnings expectations, strength in AI-linked stocks and improving risk sentiment. Market optimism was further aided by easing concerns over the Middle East conflict and expectations of a potential U.S.-Iran agreement (CNBC). Across Asia, markets ended mostly higher, led by Hang Seng (+2.52%), Shenzhen (+1.63%) and SET (+1.26%), as investors continued to ride the AI-driven rally. Nevertheless, sentiment remained cautious amid uncertainty surrounding U.S.-Iran negotiations and the durability of the Middle East ceasefire (Yahoo. Finance).

 

Market Outlook. We expect near-term market sentiment to remain cautiously constructive, supported by improving global risk appetite following fresh record highs on Wall Street amid continued enthusiasm surrounding artificial intelligence (AI)-related investments. Nevertheless, investors are likely to remain vigilant over ongoing geopolitical developments in the Middle East and uncertainty surrounding U.S.-Iran negotiations, which could continue to drive intermittent market volatility. In the near term, market attention is expected to focus on key U.S. labour market indicators, including the ADP employment report and upcoming non-farm payrolls data, for further clues on the Federal Reserve's policy trajectory. Domestically, we expect the FBM KLCI to remain range-bound as cautious regional sentiment and mixed foreign fund flows continue to limit upside momentum despite the improving external backdrop.

 

Sector focus. We favour the Construction, Utilities, and Technology sectors, supported by ongoing data centre-related investments, resilient earnings visibility, and sustained AI-driven optimism.

Technical Commentary: The FBM KLCI has formed a Double Top formation after breaking below its key rising trendline support, suggesting that the broader uptrend is losing momentum. A decisive break below the 1,680-neckline support could confirm the bearish reversal pattern and trigger further downside pressure, potentially leading to a deeper corrective phase. Immediate resistance is seen at 1,700.

 

Company News 

PETRONAS Dagangan Bhd is cutting dividend payout as earnings fell nearly 4% in the first quarter from a steep rise in product costs that offset higher sales. (The Edge)

 

RHB Bank Bhd’s first-quarter net profit rose 14% to RM856.8 million from RM750.03 million a year ago, driven by higher income and lower loan-loss provisions, despite higher operating costs, taxes and losses from associates. (The Edge) 

 

IOI Corporation Bhd said the outlook would remain tough for its downstream business that dragged on earnings in the recently ended-quarter. (The Edge)

 

Mah Sing Group Bhd’s net profit climbed 3.1% to RM68.08 million in the first quarter from RM66.04 million a year earlier despite lower revenue, supported by better cost management from nearly completed projects. (The Edge)

 

Sam Engineering & Equipment (M) Bhd's net profit for the fourth quarter ended March 31, 2026 dropped 79.4% to RM5.26 million from RM25.59 million a year earlier, weighed down by continued losses in its aerospace division and unfavourable foreign exchange movements. (The Edge)

 

Guan Chong Bhd's net profit rose 30.6% to RM123.58 million for the first quarter from RM94.6 million a year ago, as lower finance costs offset a decline in revenue following lower cocoa product prices. (The Edge) 

 

Spritzer Bhd's first quarter net profit rose 13.59% to RM22.34 million from RM19.67 million a year ago, thanks to increased bottled water sales volume and lower raw material costs. (The Edge) 

 

SKP Resources Bhd posted a net loss of RM37.28 million in its fourth quarter against a net profit of RM28.73 million a year earlier, hit by weaker customer orders, margin compression and a RM14 million impairment loss on property, plant and equipment. (The Edge)

 

Public Bank Bhd has announced the appointment of Diona Teh Li Shian as a non-independent non-executive director, effective June 1. (The Edge)

 

Solar photovoltaic system specialist Solavest Holdings Bhd and the central bank of Norway, Norges Bank, have emerged as shareholders in Sarawak-based construction firm Hartanah Kenyalang Bhd following the completion of a private placement involving 62 million shares, equivalent to a 10% stake in the company. (The Edge)

 

Berjaya Corporation Bhd and its listed subsidiary Berjaya Property Bhd have disposed of stakes in five listed companies, including Berjaya Food BhdREDtone Digital Bhd and 7-Eleven Malaysia Holdings Bhd, to related party Detik Ria Sdn Bhd for a combined RM76.79 million cash. (The Edge)

 

IJM Corporation Bhd is selling a hypermarket building in Sandakan, Sabah, to its tenant, supermarket operator Econsave for RM47.5 million. (The Edge)

 

WTK Holdings Bhd is disposing of its 85% stake and redeemable preference shares in Biogrow City Plantations Sdn Bhd for RM90 million cash, in a deal expected to generate a gain on disposal of about RM70.58 million. (The Edge)

 

Inta Bina Group Bhd has secured a RM227.08 million contract to carry out main building and infrastructure works for a mixed commercial strata development in Klang. (The Edge)

 

Sentiment: Positive
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