Opening Daily Highlight
Local
Fed and BOJ Tighten the Screws
Thu, 18-Jun-2026 07:28 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI rose 1.10% to 1,709.99 on Tuesday, extended its rebound for a second consecutive day as investor sentiment remained buoyant amid improving regional market conditions and sustained buying interest in heavyweight counters. Market breadth remained positive, with 600 advancers against 554 decliners. Sector-wise, Finance (+1.47%), Construction (+1.37%) and Consumer (+1.18%) led gains, while Healthcare (-0.84%), Industrial Products (-0.56%) and Technology (-0.43%) were the main laggards.

 

Global Markets: U.S. equities closed lower on Wednesday as the Federal Reserve maintained interest rates but adopted a more hawkish tone, with policymakers signalling the possibility of at least one rate hike in 2026. The Nasdaq fell 1.34%, while the S&P 500 and Dow Jones declined 1.21% and 0.98%, respectively, as Treasury yields rose sharply and technology stocks came under pressure. In Europe, the STOXX 600 advanced 0.52%, marking its fifth consecutive gain amid easing geopolitical concerns. Across Asia, markets ended mostly higher, led by gains in the Kospi (+1.58%), Shenzhen (+1.31%), STI (+1.16%) and Nikkei 225 (+0.79%), although sentiment remained cautious following the Fed's hawkish outlook. (Yahoo Finance)

 

Market Outlook. We expect the FBM KLCI to trade cautiously today as investors digest the Federal Reserve's hawkish policy outlook and the Bank of Japan's surprise rate hike to 1.0%, which have raised concerns over tighter global liquidity conditions. While easing geopolitical tensions in the Middle East and constructive discussions at the recent G7 Summit may help support risk sentiment, rising global bond yields could continue to weigh on growth-oriented sectors. Nevertheless, resilient domestic economic fundamentals should provide support to the local market.

 

Sector focus. Financial Services, Utilities and Consumer Staples. We remain cautious on Technology stocks amid rising global bond yields and tighter monetary conditions globally.

 

Technical Commentary: The FBM KLCI remains at a critical juncture, hovering around the neckline of a bearish Double Top formation. A decisive break below this level could signal further consolidation or downside risk in the weeks ahead. Should the KLCI decisively breach the 1,670-neckline support, the index may extend its decline towards 1,640. On the upside, resistance is expected around the 1,700 marks.

 

Company News

Vantris Energy Bhd, formerly known as Sapura Energy Bhd, will officially exit its Practice Note 17 (PN17) status on Thursday (June 18). (The Edge)

 

UEM Sunrise Bhd has secured an investment partner for its A$315.4 million (RM906.72 million) build-to-rent development in Melbourne, Australia. (The Edge)

 

EP Manufacturing Bhd, an automotive components and vehicle assembly firm, is expanding its footprint with a RM200 million investment to build a new vehicle painting facility in Pegoh, Melaka. (The Edge)

 

Scanwolf Corp Bhd has secured a RM75 million contract to carry out piling and substructure works for a 74-storey apartment development in Jalan Pavilion, Kuala Lumpur. (The Edge)

 

LAC Med Bhd has secured a four-year contract worth up to RM78.9 million to supply reagents and related items for pathology chemistry tests to 10 Ministry of Health hospitals in Kedah. (The Edge)

 

Health and wellness products retailer Beshom Holdings Bhd is disposing of 14.58 acres of freehold industrial land in Klang for RM85.8 million cash. (The Edge)

 

After telling the investing public that it was business as usual at Tanco Holdings Bhd despite the collapse of its share price, group managing director Datuk Seri Andrew Tan Jun Suan also continued his trading as usual. (The Edge)

Sentiment: Neutral
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.