Malaysian Market Review. The FBM KLCI rose 0.28% to 1,720.40 on Thursday, with late buying interest lifting the benchmark to an intraday high at the close despite mixed regional market performance. Nevertheless, market breadth turned negative, with 576 decliners against 418 advancers. Technology (-0.88%), Property (-0.33%) and Utilities (-0.17%) led the sectoral declines, although Health Care (+0.80%), Transportation & Logistics (+0.54%) and Industrial Products & Services (+0.36%) managed to finish in positive territory.
Global Markets: U.S. equities rebounded strongly overnight, with the Dow Jones rising (+1.19%), the S&P 500 gaining (+1.66%) and the Nasdaq Composite surging (+2.78%) to snap a six-day losing streak, supported by Microsoft's strong earnings and a broad recovery in semiconductor stocks. Oil prices remained elevated amid ongoing geopolitical tensions in the Middle East. Semiconductor stocks rallied sharply, with the iShares Semiconductor ETF (SOXX) surging more than (+8%), led by strong gains in Microsoft, Micron and AMD as AI-related sentiment improved. In Europe, the STOXX Europe 600 advanced (+0.77%), supported by gains in construction and mining stocks. Across Asia, markets ended mixed, with Japan's Nikkei 225 (+0.71%) and Hong Kong's Hang Seng Index (+0.20%) posting gains, while South Korea's Kospi (-1.23%) and China's Shanghai Composite (-0.62%) closed lower (CNBC).
Market Outlook. We expect the FBM KLCI to trade on a firmer footing today, supported by improving global risk sentiment following the strong rebound on Wall Street overnight. Investors will continue to assess whether the latest earnings from Microsoft, Amazon and Apple reinforce confidence in the AI investment theme, which could provide further support to technology-related counters. Meanwhile, the latest U.S. economic data, including 2Q GDP growth of 1.5% and core PCE inflation of 3.3% year-on-year, is unlikely to materially alter the Federal Reserve's data-dependent policy stance, with investors expected to remain attentive to upcoming economic releases for further policy clues. Domestically, attention will also turn to Saturday's Negeri Sembilan state election, adding a layer of political uncertainty ahead of the weekend. Overall, while the improved external backdrop should lend support to the local market, we expect investors to remain selective as they assess corporate earnings, macroeconomic developments and the upcoming state election.
Sector focus. We expect the Technology sector to remain in focus following the strong rebound in U.S. semiconductor stocks and encouraging earnings from Microsoft and Amazon, which should help lift sentiment towards AI-related counters. Plantation stocks may also continue to attract interest amid elevated crude palm oil prices. However, investors are likely to remain selective in sectors sensitive to domestic developments ahead of the Negeri Sembilan state election.
Technical Commentary: The FBM KLCI extended its gains to close at 1,720.40, finishing at an intraday high while remaining above its EMA9, EMA20, EMA120 and SMA200, indicating that the near-term bullish momentum remains intact. The index is now testing the 1,720–1,740 resistance zone, with a decisive breakout above 1,720 likely to strengthen buying interest and pave the way towards the 1,760–1,770 resistance area. On the downside, 1,700 remains the immediate support, followed by 1,680 should profit-taking emerge.
Company News
ViTrox Corporation Bhd reported that its 2QFY26 net profit more than tripled, driven by strong demand for AI-related technologies and improved operational efficiency. (The Edge)
Bursa Malaysia Bhd posted a 26% increase in 2QFY26 net profit, supported by higher securities trading activity and listing fees. (The Edge)
British American Tobacco (Malaysia) Bhd reported a 79.1% decline in 2QFY26 net profit due to higher operating expenses and declared a second interim dividend of five sen per share. (The Edge)
Axis REIT reported a 4.5% decline in 2QFY26 net property income due to higher property expenses and proposed a distribution of 2.3 sen per unit. (The Edge)
EcoFirst Consolidated Bhd reported a sharp decline in 4QFY26 net profit due to slower progress at its KL48 condominium project. (The Edge)
YTL Hospitality REIT reported a 3.5% increase in 4QFY26 net property income, supported by higher rental income, and declared a final distribution of 4.9189 sen per unit. (The Edge)
Texchem Resources Bhd posted its highest quarterly earnings in over four years, driven by stronger performance across all business segments. (The Edge)
THMY Holdings Bhd has increased the planned cost of its new factory to RM172.6 million to meet rising demand for advanced automated test solutions. (The Edge)
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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 |