Malaysian Market Review. The FBM KLCI edged lower by 0.04% to 1,712.48 on Tuesday as investors turned cautious ahead of the U.S. Federal Reserve's FOMC policy decision on Thursday (MYT), with weakness in technology stocks weighing on the broader market. Market breadth turned negative, with 706 decliners overwhelming 359 advancers. Sector-wise, REIT (+0.46%), Telecommunications & Media (+0.33%) and Utilities (+0.21%) led the gains, while Technology (-2.27%), Energy (-0.77%) and Industrial Products & Services (-0.73%) led the declines.
Global Markets: U.S. equities ended mixed overnight, with the Dow Jones Industrial Average rising (+1.03%) and the S&P 500 edging up (+0.21%), supported by stronger-than-expected corporate earnings and lower oil prices. In contrast, the Nasdaq Composite slipped (-0.22%) as semiconductor stocks remained under pressure, with the VanEck Semiconductor ETF (SMH) falling more than 3%, while Micron and AMD both tumbled more than 8%. Meanwhile, crude oil prices continued to retreat, with Brent declining (-3.78%) to US$84.49 per barrel. European markets ended broadly higher. Across Asia, the Nikkei 225 plunged (-3.95%), the Kospi slumped (-10.84%), the Shanghai Composite declined (-1.16%), while the Hang Seng Index edged up (+0.41%) (CNBC).
Market Outlook. We expect the FBM KLCI to trade cautiously ahead of Thursday's FOMC policy decision (MYT), which is widely regarded as one of the most challenging policy meetings in recent years. While the consensus continues to favour the Fed keeping interest rates unchanged at 3.50%–3.75%, market conviction remains fragile amid persistent oil-driven inflation risks. Adding to the uncertainty, the U.S. Consumer Confidence Index fell to 90.8 in July, below the consensus forecast of 92.3 and down from June's upwardly revised 92.2, reinforcing concerns over moderating economic momentum even as inflationary pressures remain elevated. Investors will closely monitor the FOMC policy statement for further clues on the Fed's policy direction. On the geopolitical front, reports that a U.S.-Iran diplomatic agreement could be within reach may further ease supply concerns and extend the recent pullback in crude oil prices, although negotiations remain fragile. Overall, we expect the FBM KLCI to remain range-bound as investors await this week's key macroeconomic and corporate catalysts.
Sector focus. We expect investors to remain cautious on the Technology sector after another round of heavy selling in global semiconductor stocks, with attention shifting to earnings from major U.S. technology companies later this week for fresh guidance on AI-related spending. Meanwhile, the Energy sector may stay under pressure following the sharp decline in crude oil prices amid easing geopolitical concerns. Against this backdrop, investors may continue to rotate into more defensive sectors ahead of the FOMC policy decision.
Technical Commentary: The FBM KLCI traded sideways after reclaiming both its EMA9 and EMA20 in the previous session, closing slightly lower at 1,712.48. Despite the mild pullback, the index continues to hold above its EMA9, EMA20, EMA120 and SMA200, suggesting that the near-term recovery remains intact. Immediate resistance is seen around the 1,720–1,740 zone, with a decisive break above 1,720 likely to reinforce the recovery and pave the way for a retest of the 1,760–1,770 resistance area. On the downside, the 1,700 psychological level remains the immediate support, followed by the 1,680 zone and 1,655 should selling pressure intensify.
Company News
Favelle Favco Bhd said its US subsidiary has been named as a defendant in a US$52.5 million lawsuit over the 2023 crane collapse in New York. (The Edge)
Dufu Technology Corp Bhd reported its highest quarterly earnings in nearly four years, driven by stronger hard disk drive component sales, and declared an interim dividend of two sen per share. (The Edge)
Pantech Global Bhd posted record 1QFY27 revenue and a 36% increase in net profit, supported by higher sales volume and average selling prices. (The Edge)
Country View Bhd reported a 15.3% increase in 2QFY26 net profit despite lower revenue, supported by lower costs and land sale gains. (The Edge)
OGX Group Bhd reported a 51.2% increase in FY2026 net profit, driven by stronger margins and higher revenue from IT infrastructure projects. (The Edge)
Ecomate Holdings Bhd's subsidiary has secured a RM13.4 million purchase order from Gamuda Bhd for a three-year software licence subscription renewal. (The Edge)
LYC Healthcare Bhd said it may miss the deadline to issue its FY2026 annual report, which could result in the suspension of its shares. (The Edge)
Bus Cap Bhd has appointed former Systech Bhd executive director Teoh Keng Chang as its non-independent non-executive director. (The Edge)
IJM Corp Bhd group managing director Datuk Lee Chun Fai will seek re-election to the board at the company's upcoming annual general meeting. (The Edge)
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.
| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.074794 | 4.107436 |
| EUR | 4.643456 | 4.648249 |
| CNY | 0.603789 | 0.604421 |
| HKD | 0.519876 | 0.523537 |
| SGD | 3.151082 | 3.173349 |