Malaysian Market Review. The FBM KLCI gained 0.71% to 1,713.09 on Monday, supported by improved regional sentiment as easing geopolitical tensions and a sharp decline in crude oil prices lifted overall risk appetite. Market breadth turned slightly positive, with 540 advancers against 539 decliners. Sector-wise, Technology (+1.20%), Financial Services (+0.92%) and Transportation & Logistics (+0.66%) led the gains, while Energy (-0.58%), Industrial Products & Services (-0.54%) and Utilities (-0.30%) led the declines.
Global Markets: U.S. equities ended mixed overnight, with the Dow Jones Industrial Average rising (+0.51%) and the S&P 500 edging up (+0.02%), while the Nasdaq Composite slipped (- 0.18%) as weakness in semiconductor stocks weighed on technology shares. Oil prices plunged, with Brent crude falling (-11.16%), after the U.S. and Iran paused hostilities, easing concerns over potential supply disruptions. Semiconductor stocks remained under pressure amid concerns over intensifying competition from Chinese chipmakers and uncertainty surrounding AI-related spending, with ASML tumbling nearly (-6%), while AMD, Teradyne and Micron Technology also ended lower (CNBC). Meanwhile, European equities closed broadly higher as easing geopolitical tensions improved investor sentiment, with FTSE 100 rising (+0.42%) and the STOXX Europe 600 edging up (+0.02%) (CNBC). Asian markets also ended mostly higher, supported by improving risk sentiment following the sharp decline in oil prices, with China's Shanghai Composite gaining (+1.15%), South Korea's KOSPI rising (+0.97%), Hong Kong's Hang Seng Index advancing (+0.98%) and Japan's Nikkei 225 adding (+0.50%) (CNBC).
Market Outlook. We expect the FBM KLCI to extend it rebound this week as improved risk appetite, driven by the U.S.-Iran de-escalation and the sharp decline in crude oil prices, continues to support market sentiment. Nevertheless, investors are likely to remain cautious as geopolitical tensions in the Middle East remain fluid, with any renewed escalation likely to reignite volatility in energy prices. Attention now turns to a heavy week of market catalysts, with the U.S. Federal Reserve's FOMC policy decision on Thursday (MYT) remaining the key event. While the Fed is widely expected to keep interest rates unchanged, markets will closely watch for any changes in its policy guidance amid lingering inflation concerns. In addition, Thursday's (MYT) U.S. Core PCE inflation data will provide further insight into the Fed's preferred inflation gauge. Investors will also focus on earnings from Microsoft and Meta on Thursday (MYT), followed by Apple and Amazon on Friday (MYT), for further clues on AI-related capital expenditure and corporate earnings trends. Domestically, we expect the FBM KLCI to remain supported by improving risk sentiment, although gains may be capped as investors continue to monitor geopolitical developments alongside this week's key macro and corporate events.
Sector focus. We expect investors to remain focused on the Technology sector ahead of this week's earnings releases from major U.S. technology companies, although sentiment may stay selective following the overnight weakness in semiconductor stocks. Meanwhile, the Energy sector could remain under pressure after crude oil prices retreated sharply as easing geopolitical tensions reduced concerns over potential supply disruptions.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI reclaimed both its EMA9 and EMA20 after slipping below them on Friday, before climbing to an intraday high of 1,718.31 and easing slightly into the close. The index continues to face resistance around the 1,720–1,740 zone. A decisive break above 1,720 would reinforce the recent recovery and pave the way for a retest of the 1,760–1,770 resistance zone. On the downside, the 1,700–1,680 area remains the key support, followed by 1,655 should selling pressure intensify
Company News
DXN Holdings Bhd reported a 20.8% decline in 1QFY27 net profit due to weaker sales across several markets and declared an interim dividend of 0.6 sen per share. (The Edge)
CapitaLand Malaysia Trust said it has seen no immediate impact from the new US tariff on tenant sentiment or leasing demand. (The Edge)
CapitaLand Malaysia Trust reported a 12.5% increase in 2QFY26 net property income, driven by stronger property performance, and declared a distribution per unit of 1.29 sen. (The Edge)
PGF Capital Bhd posted a 20.1% increase in 1QFY27 net profit, supported by steady demand for its insulation products. (The Edge)
Oriental Interest Bhd has proposed a RM280 million related-party acquisition to diversify into the motorcycle financing and retail business. (The Edge)
SNS Network Technology Bhd has secured a RM1.22 billion contract to supply high-performance AI servers for a data centre in Malaysia, marking the largest contract in its history. (The Edge)
Destini Bhd has secured a RM45.58 million government contract to undertake maintenance, repair and overhaul works for 13 passenger train sets. (The Edge)
Aemulus Holdings Bhd has secured RM15.11 million in new orders from a South Korean customer to supply AI and data centre test systems. (The Edge)
Country Heights Holdings Bhd founder Tan Sri Lee Kim Yew has increased his deemed stake in the company to 43.91% after acquiring six million shares. (The Edge)
T7 Global Bhd has seen lawyer Ian Shang Kuan Chou Chuen emerge as a substantial shareholder after increasing his stake to 6.17%. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.068809 | 4.101418 |
| EUR | 4.652982 | 4.657797 |
| CNY | 0.603321 | 0.603940 |
| HKD | 0.519111 | 0.522769 |
| SGD | 3.155371 | 3.177622 |