Malaysian Market Review. The FBM KLCI gained 0.18% to 1,715.56 on Wednesday, supported by selective buying in defensive stocks. Market breadth turned positive, with 560 advancers against 466 decliners. Sector-wise, Telecommunications & Media (+1.22%), Technology (+0.83%) and Plantation (+0.76%) led the gains, while Energy (-0.36%), Health Care (-0.26%) and Financial Services (-0.19%) were the top laggards.
Global Markets: U.S. equities closed sharply lower overnight, with the Dow Jones plunging (-2.19%), the S&P 500 sliding (-1.52%), and the Nasdaq Composite falling (-1.74%), after the Federal Reserve left interest rates unchanged while Treasury yields surged as investors questioned whether policymakers were doing enough to contain inflation. Three FOMC members voted in favour of a rate hike, while Fed Chair Kevin Warsh's hawkish remarks failed to reassure the bond market. Oil prices rallied sharply, with Brent crude surging back above US$90 per barrel after U.S. President Donald Trump said the U.S. would respond forcefully to Iran following attacks on American troops in the Middle East. Semiconductor stocks remained under heavy selling pressure, with the iShares Semiconductor ETF (SOXX) dropping (-5.50%) for its fifth consecutive losing session. Micron and KLA each tumbled around (-10%), while AMD declined (-5.50%), as concerns over AI investment returns and intensifying competition from China continued to weigh on the sector. In Europe, the STOXX Europe 600 edged down (-0.29%) despite opening higher earlier in the session. Across Asia, markets ended mixed, with Japan's Nikkei 225 falling (-1.49%) and South Korea's Kospi tumbling (-5.98%) amid a broad technology sell-off. In contrast, Hong Kong's Hang Seng Index gained (+1.96%), while China's Shanghai Composite rose (+0.40%), supported by gains in consumer and property-related stocks (CNBC).
Market Outlook. We expect the FBM KLCI to trade cautiously today as investors digest mixed signals from overnight Big Tech earnings. Microsoft surged more than 3% in after-hours trading after reporting better-than-expected earnings and revenue, while Meta fell around 6%–7% after missing earnings expectations, despite beating revenue estimates and raising its FY2026 capital expenditure guidance to US$130–145 billion. The contrasting market reaction suggests investors remain divided over the sustainability of AI infrastructure spending ahead of Apple and Amazon's earnings due after Thursday's close (Friday, MYT). Meanwhile, the Federal Reserve kept interest rates unchanged at 3.50%–3.75%, although the decision was accompanied by an unusually split 9–3 vote, with three policymakers dissenting in favour of a rate hike. Investors will also closely monitor Thursday evening's (MYT) Core PCE Price Index and the advance estimate of 2Q GDP, both of which are expected to provide further guidance on the U.S. interest rate outlook. Domestically, attention will also turn to Saturday's Negeri Sembilan state election, which could add another layer of uncertainty ahead of the weekend. Overall, we expect investors to remain cautious and selective while awaiting clearer direction from upcoming U.S. earnings, key economic data and the weekend's election outcome.
Sector focus. We expect the Technology sector to remain volatile following the mixed market reaction to Microsoft's and Meta's earnings, with investors likely to stay cautious ahead of Apple's and Amazon's quarterly results. Meanwhile, Energy stocks may attract buying interest amid elevated geopolitical tensions, which could provide near-term support to crude oil prices. Plantation counters may also benefit from firmer crude prices, although gains could remain dependent on developments in the Middle East.
Technical Commentary: The FBM KLCI extended its gains to close at 1,715.56, remaining 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 breakout above 1,720 likely to reinforce the recovery and pave the way towards the 1,760–1,770 resistance area. On the downside, the 1,700 psychological level remains the immediate support, followed by 1,680 should profit-taking emerge.
Company News
Harn Len Corp Bhd reported a 96% decline in 4QFY26 net profit due to higher costs, tax expenses and lower other income, and declared a share dividend. (The Edge)
Sunway Healthcare Holdings Bhd is acquiring RM45.37 million worth of land in Sunway City Iskandar Puteri to support its Johor expansion. (The Edge)
Tasco Bhd reported a 7.2% decline in 1QFY27 net profit due to higher cost of sales and tax expenses. (The Edge)
Atrium REIT reported a 14% increase in 2QFY26 net property income, driven by stronger rental contributions, and declared a 2.6 sen distribution per unit. (The Edge)
Keyfield International Bhd will contest a RM12.24 million lawsuit filed by a Dubai shipbroker over alleged unpaid vessel sale commissions. (The Edge)
Petra Energy Bhd's subsidiary is selling two marine vessels for RM61.31 million to monetise non-performing assets. (The Edge)
Chin Teck Plantations Bhd reported a 44% decline in 3QFY26 net profit due to lower sales volume and declared a total dividend of 12 sen per share. (The Edge)
Semico Capital Bhd has formed a joint venture to operate a licensed family entertainment outlet at Pavilion Bukit Jalil. (The Edge)
AME REIT reported a 19.6% increase in 1QFY27 net property income, supported by new property acquisitions and higher rental renewals, and declared a 2.15 sen distribution per unit. (The Edge)
JcbNext Bhd has reduced its stake in Taiwan-listed 104 Corp to 4.25% through a RM29.36 million share disposal. (The Edge)
Alliance Bank Malaysia Bhd expects stable asset quality and lower net credit costs in FY2027 following improving loan impairment trends. (The Edge)
IJM Corp Bhd chairman Tan Sri Krishnan Tan will retire at the company's AGM on Aug 27 after 42 years with the group. (The Edge)
Silver Ridge Holdings Bhd said Datuk Khoo Yik Chou has ceased to be a substantial shareholder after a margin call-triggered disposal of his shares. (The Edge)
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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.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.075074 | 4.107717 |
| EUR | 4.687639 | 4.692403 |
| CNY | 0.605303 | 0.605923 |
| HKD | 0.519707 | 0.523362 |
| SGD | 3.161063 | 3.183454 |