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KLCI Holds Steady Ahead of Key GDP Release
Fri, 17-Jul-2026 07:22 am
by Research Team • Apex Research

Malaysian Market Review. The FBMKLCI rebounded on Thursday, rising 8.43 points, or +0.49%, to close at 1,722.19 from Wednesday's 1,713.76, driven by broad-based buying across multiple sectors, with gainers edging out losers 599 to 529. Investors’ sentiment was underpinned by expectations that Malaysia's second-quarter GDP, due for release today, will stay above the 4% mark, reinforcing confidence in the country's resilient economic expansion. Sector-wise, Property (+1.12%) posted the biggest gains, followed by Finance Services (+0.78%) and Construction (+0.76%), while Telecommunications & Media (-0.50%) led the decliners, followed by Technology (-0.44%) and REIT (-0.26%).

  

Global Markets: The Dow Jones Industrial Average dropped -0.20%, to 52,552.97, the S&P 500 lost -0.51% to 7,533.77, and the Nasdaq Composite declined -1.47% to 25,881.95. Chip stocks led the decline after Taiwan Semiconductor raised its capex forecast despite beating Q2 estimates, dragging down Arm, Micron, AMD, Broadcom, and SK Hynix, while Alphabet also slid on reports it delayed its next AI model. Still, earnings season remains strong, with over 87% of reporting S&P 500 companies beating estimates, while jobless claims and retail sales data came in largely in line with expectations. Meanwhile, Europe STOXX 600 gained +0.16% to 643.73. In Asia, Japan's Nikkei 225 dropped -2.79% and South Korea's KOSPI declined -6.37%, while Hong Kong's Hang Seng rose +1.33%(CNBC).

 

Market Outlook. A sell-off in semiconductor and AI-related stocks weighed on Wall Street on Thursday, with Taiwan Semiconductor's higher capex guidance and Alphabet's delayed AI model launch dragging the Nasdaq lower, even as broader earnings season remained robust, with over 87% of reporting S&P 500 companies beating estimates. This suggests investors are reading this as a capex overbuild risk rather than simple profit-taking, echoing the same AI-overcapacity fears that have resurfaced repeatedly in recent weeks. For KLCI, today’s second-quarter GDP release, expected to confirm growth above 4%, should provide a near-certain positive, but gains are likely to stay narrow and rotation-driven rather than broad-based, given the fresh bout of weakness in global tech and semiconductor names. We'd stay cautiously positive, but avoid chasing strength, given the string of event risks this week.

 

Sector focus. Plantation and Financial Services counters may remain in focus, supported by continued strength in CPO prices and selective buying in fundamentally strong large-caps ahead of Malaysia's upcoming GDP release. Conversely, Technology could see continued volatility following recent mixed performance among chip and EMS names, while Telecommunications & Media and REIT may stay soft amid recent pullbacks. 

 

Technical Commentary: The FBMKLCI added 8.43 points to close at 1,722.19, holding above the key 1,720 level after touching an intraday high of 1,726.75. The index has now firmly broken above the 1,700 - 1,720 resistance zone, indicating that the earlier bearish Double Top pattern is no longer a major concern. The index remains well supported above its 9-day, 20-day and 120-day moving averages, reinforcing the improving near-term uptrend. With the index now holding above the 1,720 level, attention shifts to the next resistance zone at 1,760–1,770, which marks the market's previous highs. The 1,674 level remains the key support for the index. A break below this level could signal a loss of upward momentum and weaken the current market outlook. 

 

Company News 

Padini Holdings Bhd said the Malaysian Anti-Corruption Commission (MACC) has released all bank accounts belonging to the group and its subsidiaries. (The Edge)

 

Similarly, Cropmate Bhd said the MACC has unfrozen the affected bank accounts of the company and its subsidiaries. (The Edge) 

 

GuocoLand (Malaysia) Bhd said trading in its shares will be suspended from July 30 to facilitate the selective capital reduction and capital repayment exercise for the company's privatisation by its controlling shareholder, GLL (Malaysia) Pte Ltd (GLLM). (The Edge)

 

Property developer MKH Bhd has appointed Kenanga Investment Bank Bhd as independent adviser in relation to Batu Kawan Bhd's proposed RM2-a-share mandatory general offer (MGO) for the company. (The Edge)

 

Newly-listed company Liftech Group Bhd has secured a RM25 million contract from AME Elite Consortium Bhd to provide a material handling system for an aerospace-related test cell facility in Sepang, Selangor. (The Edge)

 

Kerjaya Prospek Group Bhd is expanding into the renewable energy sector by acquiring a 9.09% stake in ES Sunlogy Bhd for RM18.76 million cash. (The Edge)

 

iCents Group Holdings Bhd said its wholly-owned subsidiary VC Engineering Sdn Bhd has secured a RM12.9 million contract to carry out renovation works for a factory, warehouse and office in the Klang Valley. (The Edge)

 

Berjaya Property Bhd is investing RM58 million in Perlis Maritime Corridor (PMC) developer Manjaran Sdn Bhd to enter the port, logistics and energy sectors, betting the project will generate an average RM16 million in annual profit after tax over the next 20 years. (The Edge)

Sentiment: Positive
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