Opening Daily Highlight
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Global Relief Rally Ignites
Fri, 19-Jun-2026 07:18 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI edged up 0.08% to close at 1,711.39 on Thursday, paring early gains as a weaker broader market reflected prevailing investor caution. Market breadth skewed negative with 660 decliners outpacing 513 advancers. Sector-wise, Industrial products (+1.13%), Consumer (+1.01%) and REIT (+0.56%) led gains, while Technology (-1.62%), Telecommunications & Media (-0.77%) and Utilities (-0.74%) were the main laggards.

 

Global Markets: U.S. equities rebounded on Thursday, with the Nasdaq (+1.91%), S&P 500 (+1.08%) and Dow Jones (+0.14%) closing higher as easing U.S.-Iran tensions and lower Treasury yields lifted sentiment. Semiconductor stocks led gains, with Intel (+10.6%), Nvidia (+3.0%) and Micron (+9.0%) driving the SOXX ETF up more than 6%, while oil prices extended losses on expectations of smoother global supply flows (CNBC). In Europe, the STOXX 600 slipped 0.34%, weighed down by the Federal Reserve's hawkish outlook. Across Asia, markets were mixed as the Kospi (+2.55%), Nikkei 225 (+1.55%) and Shenzhen (+0.94%) advanced, while the JCI (-0.78%) and Hang Seng (-1.59%) retreated amid concerns over a higher-for-longer U.S. interest rate environment. (Yahoo Finance)

 

Market Outlook. We expect the FBM KLCI to charge higher today, riding a wave of renewed global optimism after Wall Street notched another positive session overnight. Risk appetite is surging as the historic U.S.-Iran peace pact takes full effect, with the reopening of the vital Strait of Hormuz completely defusing energy supply anxieties and sending crude oil prices into a tailspin. This dramatic collapse in commodity costs has handed central bankers a massive victory against inflation, pulling U.S. Treasury yields down from their recent peaks and giving equities breathing room to rally. On the local front, this risk-on backdrop is expected to trigger aggressive bargain-hunting across Bursa Malaysia.

 

Sector focus. A more hawkish Fed could potentially benefit export-oriented sectors if it leads to a stronger USD/MYR exchange rate, which would enhance the value of overseas earnings when translated into ringgit. Meanwhile, REITs may lose momentum as higher interest rates weigh on yield attractiveness and increase financing costs.

 

Technical Commentary: The FBM KLCI has shown signs of stabilisation after successfully defending the critical 1,670 neckline support of its bearish Double Top formation. The rebound above the 20-day and 50-day moving averages suggests that near-term sentiment has improved, although the index remains below key resistance levels. While the immediate downside risk has moderated, the Double Top pattern remains valid unless the KLCI breaks decisively above 1,720–1,740. As long as the index holds above 1,670, further recovery towards 1,720 and 1,740 is likely. However, a break below the neckline support would reaffirm the bearish setup and could trigger a decline towards 1,640.

 

Company News 

Sunway Construction Group Bhd said it has secured additional change orders worth RM664.4 million for two data centre projects in Johor, bringing the total contract value to RM865.6 million. (The Edge)

 

Top Glove Corp Bhd more than doubled its net profit for the third quarter ended May 31, 2026, driven by higher sales volume, price adjustments and cost efficiencies. (The Edge)

 

Retail convenience chain MyNews Holdings Bhd said its net profit for the second quarter ended April 30, 2026 plunged 97% to RM55,000 from RM2.28 million a year earlier, mainly due to higher operating expenses. (The Edge)

 

GIIB Holdings Bhd said its founder Tai Boon Wee has returned as chairman after being cleared of allegations previously investigated by the Malaysian Anti-Corruption Commission (MACC). (The Edge)

 

Binastra Corp Bhd posted a 40.3% jump in net profit for the first quarter ended April 30, 2026, driven by higher revenue from its core construction segment. (The Edge)

 

Offshore support vessel operator Lianson Fleet Group Bhd is acquiring a 14-year-old Supramax bulk carrier for US$15.5 million (RM60.9 million) as part of its plan to expand its marine transportation fleet and diversify its revenue base. (The Edge)

 

Swift Energy Technology Bhd  has secured purchase orders worth a combined RM44.15 million to supply equipment for an oil and gas project in Thailand and a data centre in Malaysia. (The Edge)

 

Digital service group PUC Bhd is proposing to acquire battery energy storage firm H BESS Sdn Bhd for RM6.75 million, marking its entry into the energy storage sector. (The Edge)

 

Power engineering solution provider EI Power Bhd has secured a RM90.1 million subcontract for a data centre project in Johor. (The Edge)

 

WCT Holdings Bhd said its joint venture in the United Arab Emirates has secured a sub-contract worth 479 million dirham (RM529 million) to undertake construction works for commercial and residential buildings in Abu Dhabi. (The Edge)

Sentiment: Positive
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