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Markets Wary Ahead of Key Inflation Data
Wed, 12-Aug-2026 07:34 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI dropped 3.91 points, or 0.23%, to 1,731.46, as rising crude oil prices and persistent geopolitical concerns weighed on investor sentiment. Market breadth was slightly negative, with 574 decliners against 570 gainers. The decline was mainly driven by continued uncertainty surrounding the Strait of Hormuz, as the prolonged standoff raised concerns over potential disruptions to global crude oil supplies, keeping oil prices elevated and weighing on overall market sentiment. By sector, Healthcare (+1.23%) and Energy (+0.99%) led the gainers, while Plantation (-0.38%) and Property (-0.34%) topped the laggers.

  

Global Markets: The Dow Jones shed 184.13 points, or 0.34%, to end at 53,791.85, while the S&P 500 lost 0.32% to close at 7,728.20, and the Nasdaq declined 0.60% to 26,445.45. Communication services led the laggards as Alphabet and AppLovin dropped 3.8% and nearly 6% respectively, while Information technology was also weak, with Nvidia closing flat despite a major AI infrastructure partnership announcement, and Apple falling more than 1%. Oil prices rose amid continued Middle East uncertainty, with WTI crude up 1.3% to $83.20 a barrel and Brent crude up about 1.4% to $88.91, after Iran reiterated the Strait of Hormuz would not reopen until its conditions are met, though sentiment found some support from Pakistani Defense Minister Khawaja Asif's comments suggesting a peace deal may still be shaping up. Meanwhile, Europe's STOXX 600 edged up 0.01% to close at 660.51, reflecting a broadly flat session across the region. In Asia, Japan's Nikkei 225 was closed for a holiday, while South Korea's KOSPI advanced 0.73% and Hong Kong's Hang Seng fell 1.10% (CNBC).

 

Market Outlook. Attention now turns to key U.S. inflation data, with the July CPI report due Wednesday and PPI on Thursday, both pivotal following last Friday's weak jobs report; CPI is expected to continue its downward trend, reinforcing the case for the Fed to hold rates steady, though services inflation remains a persistent concern. With elevated oil prices renewing inflationary pressures just as labour market softness raises growth concerns, the Fed faces a delicate balancing act, and markets are likely to stay volatile in the near term as sentiment swings between Hormuz-related headlines and incoming inflation data. The standoff over the Strait of Hormuz continues to show little sign of resolution, with oil prices extending their advance after a sharp jump in the previous session as investors assess the risk of prolonged disruptions to global crude flows and uncertainty over when the critical waterway could fully reopen. With geopolitical tensions showing no clear path to de-escalation, the KLCI is likely to remain under pressure in the near term, with cautious sentiment and range-bound trading expected as investors await greater clarity on the Hormuz situation.

 

Sector focus. Healthcare counters could remain in focus, supported by continued buying momentum, with Energy also benefiting from firm crude oil prices. Meanwhile, Property counters may remain soft following its recent underperformance against the broader market.

 

Technical Commentary: Since peaking in January, the FBM KLCI has remained within a downward-sloping channel, and this structure stays intact following Tuesday's pullback to 1,731.46, after touching an intraday high of 1,738.21. The Dark Cloud Cover candlestick formed last Thursday also remains valid, reinforcing the case for renewed bearish pressure within the channel. Despite holding above its key moving averages, the index's inability to clear the channel's upper resistance keeps the broader bias tilted cautious. We therefore maintain our view that the KLCI will only turn constructive on a decisive break above the channel's upper boundary. Until then, 1,720 remains the immediate support, followed by 1,700 should profit-taking resume, while the 1,760–1,770 zone stays the stiff resistance to watch. 

 

 

Company News 

Mr DIY Group (M) Bhd reported a 15.2% drop in its net profit for the second quarter ended June 30 (2QFY2026), to RM134.41 million from RM158.58 million in 2QFY2025, due to increased costs. (The Edge)

 

Scicom (MSC) Bhd saw its shares hit a nine-year high, extending year-to-date gains to 60%. (The Edge)

 

Handal Energy Bhd expects to release its 2025 annual report and financial statements by Oct 15, 15 days before its final deadline. (The Edge)

 

Cypark Resources Bhd secured feed-in tariff approval to increase the capacity of its waste-to-energy (WTE) plant in Port Dickson from the Sustainable Energy Development Authority. (The Edge)

 

HE Group Bhd has accepted a letter of intent to undertake RM47 million worth of electrical works for a data centre in Johor. (The Edge)

 

SD Guthrie Bhd is selling 556.96 acres of land in Kulai to Sime Darby Property Bhd for RM418.5 million after receiving no proposals for a joint industrial park development on the site since May 2025, due to the land being zoned for residential use. (The Edge)

 

SD Guthrie also reported that its net profit almost doubled for its quarter ended June 30 (2QFY2026), rising to RM987 million from RM505 million in the same quarter last year. (The Edge)

 

Yoong Onn Corporation Bhd’s 60%-owned subsidiary, TC Homeplus Pte Ltd, appointed subcontractor Precise Development Pte Ltd to build a S$13.16 million (about RM41.18 million) four-storey industrial building in Singapore. (The Edge)

 

West River Bhd secured a RM22.56 million subcontract to carry out electrical works at a data centre in Johor with an undisclosed entity. (The Edge)

 

 

Sentiment: Neutral
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