Malaysian Market Review. The FBM KLCI slipped 1.92 points, or 0.11%, to 1,720.37, pausing for a second session as profit-taking in index heavyweights offset a powerful rebound in Technology (+4.34%), which tracked the recovery across regional chip markets. Market breadth stayed positive with advancers leading decliners 601 to 525, as the FBM ACE (+1.14%) and FBM Small Cap (+0.34%) extended their advance, pointing to continued rotation into the lower liners. Construction (+0.65%) and Telecommunications & Media (+0.49%) also firmed, while Plantation (-1.44%) led the decliners on softer CPO futures, followed by Energy (-0.69%), Healthcare (-0.38%), and Finance (-0.01%).
Global Markets: The Dow Jones Industrial Average rose +0.74% to 52,224.64, the S&P 500 gained +0.89% to 7,509.20, and the Nasdaq Composite added +1.29% to 25,837.21. All three indexes snapped their respective three-day losing streaks as chipmakers led and investors looked past the Iran conflict to focus on earnings. 3M jumped more than 7% and General Motors rose about 5% after both beat second-quarter expectations, with nearly 88% of reporting S&P 500 companies topping estimates so far, while Micron surged 12% as semiconductors rebounded ahead of results from Alphabet and Tesla. Oil remains elevated, with Brent up +3.19% to USD91.64 after additional US strikes on Iran late Monday. In Europe, the STOXX 600 gained +0.56% and the FTSE 100 added +0.58%. While in Asia, Japan's Nikkei 225 jumped +3.26% in a catch-up rebound after Monday's holiday, Shenzhen surged +4.81% and the Shanghai Composite rose +1.79%, while South Korea's KOSPI slipped a further -1.07% and Hong Kong's Hang Seng ended the session flat (CNBC).
Market Outlook. Tomorrow morning (Malaysia time), the market's attention will be firmly on Alphabet and Tesla, whose quarterly earnings will serve as this week's most important test for the AI investment theme. With nearly 88% of reporting S&P 500 companies beating estimates, this earnings season has so far argued that the AI pullback was a valuation reset rather than a demand problem, and spending guidance from the megacaps will either confirm that reading or reopen the capex debate. The main tension sits in the oil market, where the Brent’s elevated price continues to keep imported-inflation risk alive even as equities look through the conflict, leaving markets exposed should the Fed lean hawkish at next week's meeting. At home, the picture continues to improve beneath a flat index, with market breadth turning positive and the technology rebound broadening the rally beyond the banks. We would stay constructive on dips, while recognising that disappointing megacap numbers would test the region's freshly recovered chip complex.
Sector focus. Technology stocks may extend gains on the back of a regional chip rebound, with Alphabet's and Tesla's earnings (Malaysia time) as the key near-term catalyst. Construction should remain supported by contract newsflow, while lower liners may continue to outperform amid improving market breadth. Meanwhile, Plantation could stay soft following weaker CPO futures, while Energy and banks may consolidate after their recent gains.
Technical Commentary: The FBM KLCI slipped 1.92 points to 1,720.37, but the technical outlook remains constructive after buyers emerged near the rising 9-day EMA at 1,712, allowing the index to recover most of its intraday losses. The broader uptrend remains intact, with a break above 1,726.88–1,735.67 likely to resume the advance towards 1,760–1,770. Immediate support is seen at 1,720, followed by the 9-day EMA at 1,712 and the 20-day EMA near 1,701.
Company News
The Shah Alam High Court has ordered Sime Darby Property Bhd to repay RM36.23 million plus 5% annual interest to the Malaysian Highway Authority, after finding the company received more compensation than it was entitled to for land acquired in 2015 for the West Coast Expressway. (The Edge)
Ancom Nylex Bhd posted its strongest quarterly profit in nearly four years, with fourth-quarter net profit rising more than 46% to RM25.03 million as revenue climbed over 32% to RM608.88 million, and has proposed a third interim dividend of 0.5 sen per share alongside a distribution of one treasury share for every 200 shares held. (The Edge)
PRG Holdings Bhd has rejected a requisition notice from its second-largest shareholder Datuk Sheah Kok Fah and three others seeking an EGM to remove its group managing director and revamp the board, after determining that their collective shareholding falls short of the 10% threshold required under the Companies Act. (The Edge)
Geohan Corporation Bhd has secured a RM40.9 million contract from a unit of China State Construction Engineering for foundation and structural works on a Persiaran KLCC mixed development comprising two 65-storey serviced apartment towers, lifting its year-to-date contract wins to more than RM200 million. (The Edge)
Hartanah Kenyalang Bhd has secured a RM41.38 million contract to build multi-storey buildings and ancillary facilities in Sarawak, awarded to its unit Hartanah Construction Sdn Bhd by an undisclosed local construction client. (The Edge)
MGB Bhd has secured a RM44.7 million, 10-month contract from Saudi Arabia's Roshn Group for mechanical, electrical, plumbing and finishing works on 75 villas under a villa development project. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.072797 | 4.105430 |
| EUR | 4.668191 | 4.673021 |
| CNY | 0.603925 | 0.604543 |
| HKD | 0.519593 | 0.523248 |
| SGD | 3.158830 | 3.181112 |