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KLCI Snaps Six-Day Rally as Asian Chip Selloff Spreads
Fri, 07-Aug-2026 07:46 am
Apex Research

Malaysian Market Review. The FBM KLCI fell 0.63% to 1,737.15 on Thursday, snapping its six-session winning streak as profit-taking set in after the recent rally lost momentum. Market breadth turned negative, with decliners outpacing advancers 577 to 567. Construction (+1.58%) and Technology (+1.35%) bucked the trend, while Industrial Products (-1.29%), Telecommunications (-0.83%) and Consumer (-0.80%) led the laggards.

  

Global Markets: U.S. equities slipped on Thursday as rising Treasury yields and a mixed batch of earnings weighed on sentiment: the Dow Jones fell 0.85% to 53,885.10, snapping its own record-breaking win streak, while the S&P 500 eased 0.18% to 7,709.96 and the Nasdaq Composite dipped 0.06% to 26,348.35, dragged by a roughly 20% plunge in AppLovin and a 13% drop in Western Digital on disappointing guidance. In Europe, the STOXX Europe 600 bucked the regional weakness, adding 0.16% to a fresh record near 658.19, supported by strong corporate earnings including Deutsche Telekom and a rebound in AI-infrastructure names such as ASML. In Asian markets, South Korea's Kospi tumbled 4.58% to 6,296.38 on heavy selling in large-cap semiconductor names, Japan's Nikkei 225 fell 0.93% to 65,683.26, and Hong Kong's Hang Seng dropped 1.49% to 25,530.28, while China's Shanghai Composite bucked the trend, adding 0.57% to 3,900.35. (CNBC).

 

Market Outlook. We expect the FBM KLCI to trade cautiously on Friday as investors digest the recent tech-led pullback across regional markets while positioning ahead of the closely watched U.S. non-farm payrolls report later tonight. Market sentiment may also remain fragile following Iran's publication of a draft proposal to bar U.S. and Israeli vessels from transiting the Strait of Hormuz, which lifted oil prices sharply on Thursday. Although Washington has rejected the proposed restrictions, the development has renewed geopolitical uncertainty at a time when markets had been anticipating a broader agreement as early as this week.

 

Sector focus. Technology and semiconductor-linked counters bear close watching after the sharp reversal in regional peers, which could weigh on sentiment locally after several sessions of outperformance. Financial Services and Plantation counters may see continued profit-taking following Thursday's declines. Construction remains a relative bright spot, supported by continued data centre and infrastructure contract flow.

 

Technical Commentary: Despite Thursday's pullback, the FBM KLCI remains above its EMA9, EMA20, EMA120 and SMA200, indicating that the broader upward structure remains intact. The index briefly dipped below the 1,735 resistance-turned-support level intraday before recovering to close above it, keeping the 1,760–1,770 resistance zone within reach. Meanwhile, 1,700 is the psychological support, followed by 1,680 should profit-taking emerge.

 

Company News 

A joint venture between Malaysian Resources Corp Bhd and Theta Edge Bhd has secured the RM3.028 billion system turnkey contract for the Pulau Pinang Mutiara Line Light Rail Transit (LRT) project from Malaysia Rapid Transit Corp Sdn Bhd(The Edge)

 

Bolts and nuts manufacturer Tong Herr Resources Bhd has received a proposal from its major shareholders Allrich Corp and Richard Holdings Ltd — controlled by members of the Taiwanese Tsai family — to privatise the company through a selective capital reduction and repayment exercise (SCR) at RM2.55 per share. (The Edge)

 

Batu Kawan Bhd announced that its wholly owned subsidiary Whitmore Holdings Sdn Bhd’s voluntary takeover offer of MKH Bhd has become unconditional after the former’s shareholders approved the proposed acquisition at the group's extraordinary general meeting on Aug 5. (The Edge)

 

Pentamaster Corp Bhd saw its second-quarter (2Q2026) net profit jump by 63.9%, driven by its factory automation solutions segment, supported by its existing order book and sustained demand from its AI Compute and medical segments. (The Edge)

 

Oriental Kopi Holdings Bhd is planning to expand into Indonesia and Mauritius. (The Edge)

 

Sentral REIT’s net property income (NPI) for the second quarter ended June 30, 2026 (2QFY2026) slipped 3.2% year-on-year (y-o-y) to RM35.78 million, as operating expenses rose faster than rentals (The Edge)

 

Lotte Chemical Titan Holding Bhd saw its net losses double in its 2QFY2026 to RM401.67 million from RM189.33 million. (The Edge)

 

CBH Engineering Holding Bhd secured a RM26.2 million contract to upgrade a substation in Selangor. (The Edge)

 

Southern Score Builders Bhd said its 51%-owned unit has secured a RM146.53 million electrical package subcontract for a data centre project. (The Edge)

 

Carlo Rino Group Bhd has shelved its plan to transfer to Bursa Malaysia's Main Market, citing the prevailing operating environment and its strategic priorities. (The Edge)

 

Perak Transit Bhd on Thursday unveiled a share buy-back scheme, saying that investors undervalue the bus-and-terminal operator. (The Edge)

 

Handal Energy Bhd has delayed the release of its annual report for the financial period ended Dec 31, 2025 yet again, pushing back its previously stated Aug 7 target. (The Edge)

Sentiment: Neutral
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