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Caution Takes Centre Stage
Wed, 24-Jun-2026 07:13 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI fell 1.23% to 1,679.92 on Tuesday, tracking a broad regional sell-off amid renewed concerns over a more hawkish U.S. Federal Reserve. Market breadth remained firmly negative, with 875 decliners against 329 advancers, reflecting widespread risk-off sentiment. Sector-wise, Plantation (+1.25%) and Transportation & Logistics (+0.46%) were the only gainers, while Technology (-3.96%), Industrial Products & Services (-2.44%) and Energy (-2.02%) led the declines.

 

Global Markets: U.S. equities ended lower on Tuesday, with the Dow Jones Industrial Average (-0.09%), S&P 500 (-1.44%) and Nasdaq Composite (-2.21%) declining as a broad sell-off in technology and semiconductor stocks intensified. AI-related chipmakers came under heavy pressure, with Micron, Intel, AMD and Qualcomm posting sharp losses, while investors also continued to monitor developments in the Middle East and the Federal Reserve's policy outlook (CNBC). European equities also retreated, with the STOXX Europe 600 (-0.73%) weighed down by weakness in technology shares as the global tech sell-off spread across the region (CNBC). Asian markets closed broadly lower, led by South Korea's KOSPI (-9.99%) as heavy selling in AI-related chipmakers triggered profit-taking, while Japan's Nikkei 225 (-3.55%) and Hong Kong's Hang Seng Index (-1.82%) also ended sharply lower amid risk-off sentiment (CNBC).

 

Market Outlook. Market sentiment is likely to remain cautious this week as investors continue to monitor geopolitical developments in the Middle East and their potential impact on oil prices. Meanwhile, investors will also focus on the Federal Reserve's policy outlook, with policymakers maintaining a cautious stance on inflation despite keeping interest rates unchanged. Investors are also expected to remain selective amid recent profit-taking in AI-related counters, although structural demand for AI and data centre investments is expected to remain intact. Domestically, the FBM KLCI is expected to trade in a range-bound manner as investors balance improving investment prospects against local political uncertainties. Nevertheless, Malaysia's growing role as a regional AI infrastructure hub and continued investment activity are expected to provide underlying support for the local market, although continued foreign fund outflows may cap near-term upside.

 

Technical Commentary: Yesterday's sharp decline has led the index to retest the neckline of the Double Top formation near the 1,675 level, signalling a broad bearish momentum. A decisive break below the 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 

AEON Credit Service (M) Bhd expects losses from its digital banking business to narrow by FY2027 as financing income and asset growth improve. (The Edge)

 

AEON Credit Service (M) Bhd expects financing growth to moderate to 8% in FY2027 amid geopolitical uncertainty and inflationary pressures. (The Edge)

 

Sunway Bhd will develop a residential project in Singapore after its consortium secured a S$750.57 million land bid. (The Edge)

 

SkyeChip Bhd has signed a definitive agreement with MIDA to access an Arm Flexible Access (AFA) token under the government's cooperation programme with Arm Holdings. (The Edge)

 

Kawan Food Bhd will appoint a new external auditor after shareholders voted against the re-appointment of Messrs RKT & Associates PLT. (The Edge)

 

Wellspire Holdings Bhd announced the retirement of its independent non-executive chairman Tengku Datuk Abu Bakar Ahmad Tengku Abdullah. (The Edge)

 

UWC Bhd reported that its 3QFY26 net profit more than tripled, driven by the recovery in the semiconductor industry. (The Edge)

 

Lion Industries Corp Bhd's subsidiary has received a third arbitration claim from Linde Malaysia Sdn Bhd over alleged contract breaches. (The Edge)

 

Malton Bhd has signed an MOU with US-based Ricloud AI Inc to develop AI compute centres in Malaysia. (The Edge)

 

Paragon Globe Bhd is selling 26.42 hectares of land in Johor to DayOne Data Centers Malaysia III Sdn Bhd for RM398.11 million. (The Edge)

 

Magni-Tech Industries Bhd reported an 18.9% decline in 4QFY26 net profit due to higher operating costs and weaker garment sales. (The Edge)

 

ICT Zone Asia Bhd posted a 34.6% increase in 1QFY26 net profit, supported by strong growth in its ICT trading and technology financing businesses. (The Edge)

 

Hextar Global Bhd has scaled down its planned related-party fertiliser acquisition from three companies to two amid uncertainty in the global fertiliser market. (The Edge)

 

Hextar Industries Bhd has revised the terms of its acquisition of a 51% stake in Woodpeckers Group Sdn Bhd, extending the profit guarantee period by one year. (The Edge)

 

GuocoLand (Malaysia) Bhd has disposed of its 20% stake in GLM REIT Management Sdn Bhd to a unit of Hong Leong Company (Malaysia) Bhd. (The Edge)

 

Sentiment: Neutral
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