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Records Roll on Wall Street, KLCI Rides Along
Wed, 05-Aug-2026 07:36 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI rose 0.40% to close at its intraday high of 1,732.66 on Tuesday, extending its winning streak to a fifth straight session as gains in technology and semiconductor counters, alongside broadly positive regional sentiment, lifted the benchmark. Market breadth was positive, with 621 advancers outpacing 482 decliners. Sector gains were led by Healthcare (+2.00%) and Technology (+1.02%), while REIT was the worst-performing sector, declining 1.04%.

Global Markets: US equities rallied to fresh records on Tuesday, with the S&P 500 climbing +1.79% to 7,736.52 and the Dow Jones adding +1.71% to 54,085.88, both closing at all-time highs, while the Nasdaq Composite surged +2.59% to 26,584.99 on robust second-quarter earnings and easing hopes for a reopening of the Strait of Hormuz. In Europe, the STOXX 600 rose +0.73% to 656.86, tracking the Wall Street lead and a rebound in oil prices. In Asia, South Korea's Kospi jumped +1.62% to 6,358.95, rebounding from an intraday drop after early weakness in Samsung Electronics and SK Hynix on competitive concerns from China's CXMT, as gains broadened into defense, shipbuilding and battery counters through the afternoon, while Japan's Nikkei 225 added +0.32% to 63,957.53. (CNBC).

Market Outlook. We expect the FBM KLCI to extend Tuesday's gains, underpinned by record closes on Wall Street and broadly positive regional market sentiment. Meanwhile, Brent crude tumbled more than 5% overnight to around US$79 per barrel following renewed optimism over U.S.-Iran negotiations and a potential reopening of the Strait of Hormuz, easing near-term supply concerns despite lingering geopolitical uncertainties. Investors will also focus on the upcoming U.S. ISM Services PMI and July non-farm payrolls for fresh signals on the Federal Reserve's policy outlook. Barring any significant deterioration in geopolitical conditions, we expect the local market to maintain its positive momentum.

Sector focus. We expect the Technology sector to remain in focus this week amid mixed regional semiconductor performance, while Energy and transport-related counters may benefit from lower crude oil prices following the easing of U.S.-Iran tensions. Financial Services could continue to draw support from improving market sentiment.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI closed at 1,732.66 on Tuesday, holding above its EMA9, EMA20, EMA120 and SMA200, indicating that the near-term bullish momentum remains intact and has strengthened following the session's gains. The index is now testing the 1,735 resistance level, with a decisive breakout above this level likely to 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

MNRB Holdings Bhd is selling its takaful business, Takaful Ikhlas Family and Takaful Ikhlas General, to Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) for RM1.64 billion cash. (The Edge)

Hartalega Holdings Bhd’s net profit for the first quarter ended June 30, 2026 (1QFY2027) rose six-fold year-on-year (y-o-y) to RM70.03 million, its highest quarterly earnings in four years. (The Edge)

Vantris Energy Bhd's units have secured RM830 million work orders from Petroliam Nasional Bhd’s (PETRONAS) upstream arm to provide transportation, installation and tender-assisted drilling rig services in Malaysia. (The Edge)

Capital A Bhd's non-aviation businesses posted mixed operating performance in the second quarter. (The Edge)

K-One Technology Bhd is disposing of its cloud business arm G-AsiaPacific Sdn Bhd to Tokyo listed ITOCHU Corp and its Singapore unit ITOCHU Singapore Pte Ltd for RM94 million. (The Edge)

SNS Network Technology Bhd said it expects to recognise revenue from its US$298.66 million (RM1.22 billion) contract for the supply of high-performance artificial intelligence (AI) servers to a Singapore-based customer in its current fiscal year. (The Edge)

GFM Services Bhd has secured an additional RM83.1 million for major turnaround works at the Pengerang Integrated Complex (PIC) in Johor (The Edge)

Formosa Prosonic Industries Bhd swung to a net profit of RM13.92 million for the second quarter ended June 30, 2026 (2QFY2026), compared to a net loss of RM819,000 a year earlier, on higher sales and forex gains (The Edge)

Vestland Bhd has proposed to raise up to RM60.44 million via a private placement of up to 10% of its enlarged share base to fund working capital for the construction firm's current as well as future projects. (The Edge)

Sentiment: Positive
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