Opening Daily Highlight
Local
KLCI climbs from GDP beat as Global Tech Rout Deepens
Mon, 20-Jul-2026 07:06 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI rose 9.26 points, or 0.54%, to close at 1,731.45 on Friday from Thursday's 1,722.19 after advance estimates showed second-quarter GDP accelerating to 5.8%, ahead of the 5.2% consensus, lifting the index to an intraday high of 1,735.67. However, the advance was narrow as market breadth turned negative with 691 decliners to 414 gainers. Sector-wise, Finance (+1.11%) posted the biggest gains, followed by Telecommunications & Media (+0.12%) and Plantation (+0.11%), while Technology (-2.86%) led the decliners on the global semiconductor sell-off, followed by Industrial Products (-0.64%) and Transportation & Logistics (-0.55%).

  

Global Markets: The Dow Jones Industrial Average continued its decline, dropping -0.77% to 52,146.42, the S&P 500 fell -1.01% to 7,457.69, and the Nasdaq Composite declined -1.40% to 25,520.24. With the semiconductor sell-off extended for a second session after Taiwan Semiconductor's higher capex guidance on Thursday, while Netflix slumped 7.26% on weak third-quarter revenue guidance. Sentiment was further pressured by renewed US-Iran hostilities, with Brent crude surging +7.30% to USD91.05 at the time of writing after the US completed a fresh wave of airstrikes and President Trump warning that Iranian infrastructure could be targeted next week. Meanwhile, Europe STOXX 600 fell -0.34% to 641.53. As elsewhere in Asia, Japan's Nikkei 225 sank -4.03%, with the Shanghai Composite dropped -3.05%, reaching an eleven-month low, while Hong Kong's Hang Seng lost -1.78% as South Korea's KOSPI closed for a holiday (CNBC).

 

Market Outlook. The week ahead carries two major event risks, as Washington floats the possibility of further strikes on Iranian infrastructure in the coming days, keeping oil prices elevated and inflation concerns alive, while the Fed meets at month-end after officials cautioned that rates may need to rise if inflation does not ease soon. US megacap earnings will also test whether the AI capex sell-off stabilises or broadens after TSMC’s increased guidance for capex spending. In KLCI, the stronger-than-expected 5.8% GDP growth, added with cooling June inflation rate of 1.9% and a fourth straight session of foreign net buying reinforces the domestic case, as the index's banks-heavy composition continues to shield it from the global tech rout. Gains are expected to stay narrow given Friday's weak breadth, and we would favour domestic-driven counters over AI-adjacent names until regional tech sentiment stabilises.

 

Sector focus. Financial counters may remain in focus, as the stronger GDP print is supportive of loan growth and sustained institutional and foreign interest in banking heavyweights. Energy-related counters could attract attention as Brent prices rise amid escalation risk, which would also support contract flow across the oil and gas services chain. Conversely, Technology and EMS names may stay volatile until the regional semiconductor sell-off finds a floor, while rate-sensitive REIT and Property counters could remain soft as rate-hike concerns remain.

 

Technical Commentary: The FBM KLCI advanced 9.26 points to close at 1,731.45 after reaching an intraday high of 1,735.67, extending its recovery further above the former 1,700 to 1,720 resistance zone. The breakout has also realigned the moving averages into a fully bullish sequence, with the 9-day average now running above the 20-day, 120-day and 200-day moving averages, confirming that the near-term uptrend remains intact. The next resistance sits at the 1,760 to 1,770 zone, which marks the previous swing highs, with Friday's high of 1,735.67 the immediate hurdle. Support is now found at the 1,720 level, followed by the 9-day moving average near 1,707, and a close back below these levels would signal fading momentum and open a pullback towards the support level at 1,674.

 

Company News

NYSE-listed Jabil Inc has officially opened its Intelligent Logistics Hub at the Valdor Industrial Park in Penang, developed by PROTT Sdn Bhd, a subsidiary of PTT Synergy Group Bhd. (The Edge)

 

PTT Synergy Group Bhd separately announced plans to acquire logistics software systems from China-based vTradEx Information Technology (Shanghai) Co Ltd for US$7.12 million (RM29.1 million) in cash. (The Edge)

 

Sorento Capital Bhd has received approval from the Securities Commission Malaysia for the transfer of its listing from the ACE Market to the Main Market of Bursa Malaysia. (The Edge)

 

Handal Energy Bhd has delayed the release of its annual report for the financial year ended Dec 31, 2025 for a fifth time and cancelled its rescheduled 16th AGM, with the report now expected by Aug 7. (The Edge)

 

Lotus Circular Bhd has proposed to sell its 55% stake in Miroza Leather (M) Sdn Bhd, its largest profit and revenue contributor, for RM38 million in cash, exiting the leather retail segment at an estimated pro forma loss of RM15.39 million. (The Edge)

 

Astro Malaysia Holdings Bhd is selling a 4.5-acre freehold commercial property in Cyberjaya, which includes a six-storey technical building, to AIMS Central Sdn Bhd for RM92 million. (The Edge)

 

Pesona Metro Holdings Bhd has secured a RM247.5 million contract from Setia Alam Medical Centre Sdn Bhd to build three private hospital blocks in Setia Alam, Selangor, with works expected to be completed by Jan 28, 2029. (The Edge)

 

RGB International Bhd expects higher gaming machine deliveries this year after securing at least 2,000 bookings, and aims to deliver at least 1,500 machines worth about RM200 million by end-2026, mainly to the Philippines. (The Edge)

 

CPE Technology Bhd's wholly-owned subsidiary Champion Precision Technology Sdn Bhd has purchased 118 machines worth RM34.52 million from Yamazen (Malaysia), Numac Machinery and Japan-based DMG Mori Co Ltd to expand its manufacturing capacity. (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.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.081801 4.110445
EUR 4.683584 4.688330
CNY 0.603958 0.604587
HKD 0.520575 0.524234
SGD 3.162196 3.184488