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KLCI Extends Winning Streak to Six as Asian Chip Rally Roars
Thu, 06-Aug-2026 07:19 am
Apex Research

Malaysian Market Review. The FBM KLCI rose 0.90% to 1,748.17 on Wednesday, extending its winning streak to a sixth straight session as easing Middle East tensions and falling oil prices lifted regional risk sentiment. Market breadth was firmly positive, with advancers leading decliners 690 to 487. Construction (+2.42%), Utilities (+2.29%) and Technology (+1.81) led sectoral gains, while Healthcare (-1.76%) lagged.

Global Markets: U.S. equities were mixed overnight as a reported Houthi strike on a Saudi tanker pushed oil higher. The Dow Jones added 0.49% to a fresh record 54,349.12, while the S&P 500 slipped 0.17% to 7,723.55 and the Nasdaq Composite fell 0.83% to 26,363.44, retreating from Tuesday's records as SpaceX and AMD both sold off despite earnings beats. In Europe, the STOXX Europe 600 edged up 0.04% to 657.14. Asian markets surged on a broad semiconductor rebound tracking a 6% overnight jump in the Philadelphia Semiconductor Index, with South Korea's Kospi advancing 3.76% to 6,598.26 led by SK Hynix and Samsung Electronics, and Japan's Nikkei 225 surging 3.66% to 66,300.44 on the same chip strength plus a standout SoftBank earnings-driven rally. (CNBC).

Market Outlook. We expect the FBM KLCI to keep its positive momentum on Thursday, with the index likely to test the 1,760–1,770 resistance zone after breaking decisively above 1,735. Regional sentiment remains constructive following Wednesday's broad-based Asian semiconductor rally, though a reported Houthi attack on a Saudi oil tanker has interrupted oil's recent decline and could keep prices choppy in the days ahead. Meanwhile, Investors will also focus on the upcoming U.S. 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. Technology and semiconductor-linked counters should stay in focus this week, tracking the overnight rebound in regional chip names. Energy counters bear watching too, as a reported Houthi attack on a Saudi tanker has added fresh volatility to crude after its recent decline. Construction and Utilities could see continued rotation from domestically-driven investors amid the broader market's upward bias.

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI closed at 1,748.17 on Wednesday, holding above its EMA9, EMA20, EMA120 and SMA200, with near-term bullish momentum firmly intact after a sixth consecutive day of gains. The index has decisively broken above the prior 1,735 resistance level, opening the door to the 1,760–1,770 resistance zone as the next test for buying interest. On the downside, the 1,735 resistance-turned-support now serves as the immediate support, followed by 1,700 should profit-taking emerge.

Company News

Gamuda Berhad has secured a RM1.71 billion contract to build a hyperscale data centre in Port Dickson, Negeri Sembilan. (The Edge)

Heineken Malaysia Bhd’s net profit for the second quarter ended June 30, 2026 (2QFY2026) fell 39% year-on-year (y-o-y) to RM50.53 million — its weakest quarterly performance in nearly five years. (The Edge)

Frontken Corp Bhd’s net profit for 2QFY2026 rose 43% y-o-y to a record-high RM47.72 million, thanks to stronger demand from oil and gas and semiconductor clients. (The Edge)

Kelington Group Bhd plans to invest about RM120 million to build an air separation plant in Maharashtra, India, as it expands its industrial gas business. (The Edge)

Nestcon Bhd’s wholly owned subsidiary, Nestcon Builders Sdn Bhd, secured a RM243 million contract with Exsim Waterfront Sdn Bhd to construct one block of serviced apartments in George Town, Penang. (The Edge)

Sarawak Consolidated Industries Bhd secured a RM24.59 million subcontract to undertake the reconstruction of a dilapidated school building in Sabah. (The Edge)

Sentiment: Positive
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