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KOSPI’s Record Rebound, KLCI Rides Along
Mon, 03-Aug-2026 07:39 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI rose 0.26% to 1,724.90 on Friday, with continued bluechip accumulation lifting the benchmark in tandem with broadly positive regional markets. Market breadth stayed firmly positive, with 713 advancers against 407 decliners. Industrial Products & Services (+0.93%), Energy (+0.61%) and Financial Services (+0.36%) led the sectoral gains, although Plantation (-0.41%) lagged as crude palm oil prices eased.

Global Markets: U.S. equities closed higher on Friday, the final session of July, with the S&P 500 gaining (+0.70%) to 7,489.72, the Dow Jones adding (+0.53%) to 52,485.03 and the Nasdaq Composite surging (+1.00%) to 25,373.85, led by strong post-earnings jump in Amazon even as Apple slipped. U.S. Treasury yields extended their climb, with the 10-year topping 4.7%, its highest since January 2025. In Europe, the STOXX Europe 600 eased (-0.12%) to 649.19 after touching a fresh record intraday high, weighed by a sharp slump in Universal Music Group. Across Asia, markets staged a historic rebound, with Japan’s Nikkei 225 surging (+4.03%) to 64,362.02, while South Korea’s Kospi soared (+17.9%) in its best single-day performance on record as Samsung Electronics and SK Hynix both jumped more than 26%, tracking strong Microsoft and Amazon earnings that reinforced confidence in the AI capex theme (CNBC).

Market Outlook. We expect the FBM KLCI to build on last week’s gains and trade with an upside bias, supported by improving global risk sentiment following the historic overnight rebound in Asian semiconductor and memory chip stocks. Investors will continue to assess whether last week’s earnings from Microsoft, Amazon and Apple sustain confidence in the AI investment theme, which could provide further support to technology-related counters. Meanwhile, investors are expected to remain attentive to this week's U.S. data slate, including the ISM Manufacturing and Services PMIs, JOLTS job openings and Friday's July non-farm payrolls, for further policy clues. Domestically, attention will turn to the fallout from Saturday’s Negeri Sembilan state election, where Barisan Nasional and Perikatan Nasional secured a joint 25 of 36 seats, unseating the incumbent Pakatan Harapan state government. 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 state election outcome.

Sector focus. We expect the Technology sector to remain in focus after surging as much as 4.67% intraday on Friday to a two-year high, tracking the historic overnight rebound in Korean and Japanese semiconductor names, which should help sustain sentiment towards AI-related counters. Plantation stocks may see more mixed trading following a pullback in crude palm oil prices, even as the commodity remains on track for a second straight monthly gain. However, investors are likely to remain selective in sectors sensitive to domestic developments following the outcome of Saturday’s Negeri Sembilan state election.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI closed at 1,724.90 on Friday, extending its advance to a fresh high for the week while holding above its EMA9, EMA20, EMA120 and SMA200, indicating that the near-term bullish momentum remains intact. The index is edging towards the 1,735-resistance level. A decisive breakout above this level would likely reinforce buying interest and open the door to the 1,760–1,770 resistance zone. On the downside, 1,700 remains the immediate support, followed by 1,680 should profit-taking emerge.

 

Company News

Unisem (M) Bhd’s net profit for the second quarter ended June 30, 2026 (2QFY2026) rose 8.5% to RM9.91 million from RM9.13 million a year earlier, as revenue increased 20% to RM570.12 million from RM475.15 million last year. It did not recommend a dividend for the quarter. (The Edge)

Fraser & Neave Holdings Bhd's net profit for the third quarter ended June 30, 2026 (3QFY2026) rose 10.3% to RM93.58 million from RM84.82 million a year earlier, supported by stronger performance in its Malaysian segment, as well as lower tax and operating expenses. (The Edge)

WCT Holdings Bhd acquiring the remaining 30% stake in Jelas Puri Sdn Bhd from the Employees Provident Fund (EPF) for RM140 million (The Edge)

Property developer Eastern & Oriental Bhd and Majestic Gen Sdn Bhd will acquire a 5,682 sq m freehold parcel of land along Jalan Kia Peng, Kuala Lumpur for RM189.9 million to develop a premium residential project. (The Edge)

Eco-Shop Marketing Bhd is facing a lawsuit from a property owner over alleged breach of a tenancy agreement and unauthorised demolition of premises in George Town, Penang. (The Edge)

Kumpulan Jetson Bhd announced that an independent forensic review it had commissioned into disputed payments and an employee share option scheme (ESOS) executed in and around June 2025 has found anomalies. (The Edge)

ITMAX System Bhd has secured a six-year contract worth RM120 million from the Kuala Lumpur City Hall (DBKL) for the supply, installation and maintenance of a smart street lighting system in Kuala Lumpur. (The Edge)

MISC Bhd has secured a deal to ship natural gas to Japan from PETRONAS’ facility in Sarawak. (The Edge)

Sentiment: Positive
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