Malaysian Market Review. The FBM KLCI fell 1.09% to 1,663.82 on Thursday, reversing earlier gains to close at its intraday low despite a broadly positive performance across regional markets. Market breadth turned negative, with 480 advancers against 622 decliners, reflecting cautious investor sentiment. The benchmark index was weighed down by profit-taking in heavyweight blue-chip stocks, particularly PETRONAS-linked counters, amid weaker crude oil prices. Sector-wise, Technology (+3.03%) and Telecommunications & Media (+0.76%) were the only gainers, while Industrial Products & Services (-2.10%), Plantation (-1.47%) and Transportation & Logistics (-1.21%) led the declines.
Global Markets: U.S. equities ended mixed on Thursday, with the Dow Jones Industrial Average (+0.14%) closing at a fresh record high, while the S&P 500 (-0.01%) and Nasdaq Composite (-0.46%) edged lower as weakness in major technology stocks offset optimism from Micron Technology's strong earnings. Apple plunged 6% after announcing price increases for selected products, while Microsoft also declined following higher Xbox console prices. Meanwhile, Micron surged nearly 16% after reporting stronger-than-expected earnings and guidance, reinforcing confidence in AI-driven semiconductor demand (CNBC). European equities ended higher, with the STOXX Europe 600 (+0.80%) rebounding as technology stocks gained following Micron's earnings beat (CNBC). Asian markets also advanced broadly, led by South Korea's KOSPI (+5.42%) and Japan's Nikkei 225 (+4.61%), while China's CSI300 (+1.56%) also ended higher. Hong Kong's Hang Seng Index (-1.43%), however, bucked the regional trend and closed lower (CNBC).
Market Outlook. Market sentiment is likely to remain cautious as investors assess the implications of the latest U.S. inflation data on the Federal Reserve's policy outlook. Although inflation came in line with market expectations, price pressures remain elevated, reinforcing expectations that the Fed will maintain a cautious stance on interest rates. Meanwhile, Micron's stronger-than-expected earnings and upbeat guidance reaffirmed resilient demand for AI infrastructure, which could continue to support sentiment towards semiconductor and technology-related counters. Domestically, political uncertainty ahead of the upcoming general election may weigh on market sentiment and keep investors selective in the near term. Nevertheless, investors are likely to favour companies with resilient earnings visibility and strong balance sheets amid heightened market volatility.
Sector focus. Financial Services may remain resilient, supported by solid fundamentals despite near-term political uncertainties. Meanwhile, Transportation & Logistics could benefit from lower fuel costs if crude oil prices remain subdued, while Energy-related counters may continue to face selling pressure amid weaker oil prices.
Technical Commentary: The FBM KLCI has broken below the neckline of a Double Top pattern around the 1,665 level, confirming a bearish reversal signal. Adding to the negative outlook, the break below key moving averages lends further weight to the bearish momentum. With the neckline support now compromised, further downside pressure is anticipated, potentially driving the index toward the next support zone in the 1,640–1,620 range. The decline may also be reflecting broader market concerns surrounding the upcoming election cycle. Immediate resistance is now seen at the 1,675–1,680 level.
Company News
Gamuda Bhd reported a 4.5% increase in 3QFY26 net profit, driven by stronger domestic construction activity, and declared an interim dividend of five sen per share. (The Edge)
Yinson Holdings Bhd posted a 4.3% rise in 1QFY27 net profit, supported by contributions from the Agogo FPSO, and declared an interim dividend of two sen per share. (The Edge)
Glomac Bhd reported that its 4QFY26 net profit surged more than fourfold, driven by higher progress billings and prudent cost management. (The Edge)
NexG Bhd has proposed changing its name back to Datasonic Group Bhd, subject to shareholders' approval. (The Edge)
Ibraco Bhd's associate Equinox Power Sdn Bhd has signed a 30-year power purchase agreement with Syarikat Sesco Bhd for a 100MW solar project in Sarawak. (The Edge)
Chin Hin Group Property Bhd has entered into an agreement to revive an abandoned residential project in Hulu Kelang with an estimated GDV of RM883 million. (The Edge)
Pesona Metro Holdings Bhd expects another record year in 2026, supported by stronger earnings from its property development and construction businesses. (The Edge)
Niche Capital Emas Holdings Bhd has entered into a joint venture with Greensnow Consolidated Bhd to undertake a rare earth exploration and processing project in Kelantan. (The Edge)
Ajiya Bhd has disposed of 49.95 million Tanco Holdings Bhd shares, recording a gain of RM14.32 million from the sale. (The Edge)
XL Holdings Bhd has proposed a private placement to raise up to RM42.95 million to fund the expansion of its grocery retail and wholesale business. (The Edge)
Pekat Group Bhd plans to transfer its listing from the ACE Market to the Main Market after fulfilling Bursa Malaysia's listing requirements. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.104806 | 4.133664 |
| EUR | 4.677231 | 4.682021 |
| CNY | 0.605124 | 0.605753 |
| HKD | 0.523500 | 0.527176 |
| SGD | 3.165238 | 3.187561 |