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When Oil Talks, Markets Listen
Thu, 04-Jun-2026 07:28 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI fell 0.61% to 1,672.74 on Wednesday, extending its losing streak to a fifth consecutive session as weakness in telco and banking heavyweights, coupled with lingering concerns over geopolitical tensions, elevated oil prices and uncertainty surrounding the global interest-rate outlook, continued to weigh on sentiment. Market breadth turned negative, with 519 advancers against 702 decliners. Sector-wise, Construction (+1.61%) and Industrial Products (1.50%) led gains, while Telecommunication & Media (-1.47%) and Utilities (-1.28%) were the main laggards. 

 

Global Markets: Wall Street ended lower overnight, with the Dow Jones (-1.21%), Nasdaq (-0.89%) and S&P 500 (-0.74%) declining as higher oil prices and Treasury yields weighed on sentiment amid escalating Middle East tensions and resilient U.S. economic data, reinforcing higher-for-longer rate expectations (CNBC). In Europe, the STOXX 600 (-0.66%) fell, led by weakness in financial stocks amid concerns over private market stress and a slowing global growth outlook (TBT). Across Asia, markets closed mostly higher, led by the Nikkei 225 (+2.50%), STI (+1.99%) and Shenzhen Composite (+0.73%), supported by continued enthusiasm surrounding AI-related stocks. However, the Hang Seng Index (-1.56%) lagged due to profit-taking in Chinese technology names (Yahoo Finance).

 

Market Outlook. We expect near-term market sentiment to remain cautious following Wall Street’s weaker overnight performance, as escalating Middle East tensions continue to support elevated crude oil prices, with Brent crude rising to USD97.81/bbl. Investors are likely to remain vigilant over developments surrounding U.S.-Iran negotiations and the risk of further disruptions to regional stability and global energy supply routes. Meanwhile, resilient U.S. economic data has reinforced higher-for-longer interest rate expectations, keeping upward pressure on Treasury yield. Domestically, we expect the FBM KLCI to remain range-bound amid cautious regional sentiment, persistent foreign fund outflows and heightened political uncertainty following the dissolution of the Johor State Legislative Assembly ahead of the upcoming state election, although strength in energy-related stocks may help cushion broader market weakness.

 

Sector focus. Energy, O&G and Plantation sectors may outperform on firmer crude oil prices, while Utilities and REITs could face headwinds from rising bond yields.

Technical Commentary: The FBM KLCI has confirmed its Double Top formation after breaking below the 1,680-neckline support, signalling a weakening technical outlook. The index has also breached its key rising trendline support, suggesting that downside risks remain elevated. Immediate support is seen at the SMA200 level of around 1,665, while immediate resistance is pegged at 1,680.

 

Company News 

Tan Sri Vincent Tan Chee Yioun has reduced his stake in Berjaya Corporation Bhd and ceased to be a substantial shareholder in six listed companies. (The Edge)

 

PPB Group Bhd has redesignated its non-independent non-executive director Datuk Kuok Meng Xiong as group managing director, effective Sept 1. (The Edge) 

 

RGB International Bhd has secured a vendor licence from the United Arab Emirates that allows it to sell electronic gaming machines. (The Edge)

 

Vantris Energy Bhd's latest accounts have been cleared by its external auditors, marking the oil and gas services firm’s first clean audit outcome in four years. (The Edge)

 

Willowglen MSC Bhd has secured two contracts in Singapore worth a combined RM46.56 million for power grid monitoring systems and security system installation works. (The Edge)

 

Citaglobal Bhd said it has secured a RM37.79 million subcontract to undertake construction work under Penang's light rail transit (LRT) project. (The Edge) 

 

Pan Merchant Bhd said the group has been awarded a RM26.49 million contract as a nominated supplier for the Sungai Rasau Water Supply Scheme (Stage 1) in Selangor. (The Edge) 

 

Perdana Petroleum Bhd is investing US$33.94 million (RM134.49 million) to build two new anchor-handling tug and supply (AHTS) vessels as part of its fleet rejuvenation programme amid improving conditions in the offshore support vessel market. (The Edge)

 

Ramssol Group Bhd said it is acquiring controlling stakes in two manpower and recruitment-related companies for RM14.4 million, as the ACE Market-listed group seeks to expand into recruitment, manpower outsourcing and artificial intelligence-powered (AI) workforce analytics. (The Edge)

 

Pekat Group Bhd said its large-scale solar project in Kulai, Johor, awarded in October, has more than doubled in capacity to 135MWac and it has secured another RM100.86 million contract for additional works. (The Edge)

Sentiment: Negative
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