Malaysian Market Review. The FBM KLCI rose 10.15 points, or 0.59%, to 1,741.61, compared with Tuesday's close of 1,731.46. Market breadth was positive, with 665 gainers against 509 decliners. The stronger close was supported by gains in utilities and petrochemical counters as crude oil prices approached $90 per barrel, reflecting a broader rotation into commodity-linked stocks amid persistently elevated energy prices fuelled by geopolitical risks. By sector, Energy (+1.62%) and Utilities (+1.65%) led the gainers, while REIT (-0.40%) and Property (-0.26%) topped the laggers.
Global Markets: The Dow Jones slipped 21.58 points, or 0.04%, to end at 53,770.27, while the S&P 500 climbed 0.26% to close at 7,748.50, and the Nasdaq added 0.54% to 26,588.49. July's CPI came in as expected, with headline inflation rising 0.1% on the month and 3.4% on the year, while core CPI advanced 0.2% on the month and 2.5% on the year, both marking a slight decrease from June, even as U.S. oil prices pushed above $83 a barrel amid dwindling hopes for a reopening of the Strait of Hormuz. Meanwhile, Europe's STOXX 600 fell 0.16% to close at 659.48, reflecting a broadly softer tone across the region. In Asia, markets traded mixed, with Japan's Nikkei 225 gaining 0.83% and South Korea's KOSPI surging 3.68% on strong buying interest, while Hong Kong's Hang Seng bucked the regional strength to fall 0.83% (CNBC).
Market Outlook. Following the in-line July inflation report, Fed rate-hold odds for September have risen to around 60%, and strong AI-related earnings continue to support market strength. Oil prices held largely steady around $89 for Brent and $83 for WTI even after deadly attacks on vessels in the Red Sea and Gulf of Oman heightened shipping-route risks, with concerns over Middle East supply remaining prevalent despite signs the U.S. and Iran may be nearing a Hormuz agreement. For KLCI, while elevated crude oil prices have strengthened the earnings outlook for commodity-linked counters, the same dynamic weighed on broader regional sentiment, with most Asian equity markets ending lower as investors reassessed the impact of higher energy costs on inflation, interest rates, and corporate earnings. We stay cautious to conservative on the local market going forward, as tangible progress on Hormuz is still needed before risk sentiment can meaningfully improve.
Sector focus. Utilities and Energy counters may extend their gains, supported by continued buying momentum and firm crude oil prices respectively. Construction could remain resilient, supported by sustained data centre and AI-related investments, which should underpin job flows and earnings visibility for selected contractors.
Technical Commentary: The FBM KLCI closed at 1,741.61, with the index now pressing against the upper boundary of the downward-sloping channel that has capped price action since peaking in January. Although this is a positive sign, we are still cautious because the index has tried several times since May to break above this resistance level but has not been able to sustain the breakout. The overall downtrend has also not been clearly broken yet. For the trend to truly turn positive, the index needs to break above the channel and then stay above the 1,760 – 1,770 level. On the downside, 1,720 remains the immediate support, while a failure to sustain the rally could see the index retreat towards 1,700.
Company News
Sunway REIT raised distribution per unit by nearly 11% as property income expanded in the second quarter ended June 30, 2026 (2QFY2026) with better revenue from shopping malls and hotels. (The Edge)
Malaysia Smelting Corp Bhd’s second quarter net profit more than doubled to RM34.02 million, from RM13.95 million a year earlier, helped by higher refined tin sales and prices, as well as improved efficiency from its mining and smelting operations, particularly at its facility in Pulau Indah, Selangor. (The Edge)
Information and communications technology (ICT) distributor VSTEC Bhd posted a 50% year-on-year (y-o-y) jump in net profit to RM RM30.31 million for 2QFY2026, from RM20.17 million a year earlier, driven by broad-based growth across its business segments and higher public sector project deliveries. (The Edge)
Industronics Bhd has lodged a police report and removed former executive director Liu Wing Yee Amy from all positions in the group after identifying more than HK$96 million in trade receivables concentrated among a small number of customers at its Hong Kong subsidiary, ECGO International Ltd. (The Edge)
Kerjaya Prospek Group Bhd has secured a RM223 million contract from Sunway Majestic Sdn Bhd to build a small office or home office (SOHO) development in Johor Bahru. (The Edge)
Southern Score Builders Bhd has secured another subcontract for a data centre, this time worth RM105 million in Puncak Alam, Selangor. (The Edge)
Eita Resources Bhd’s unit EITA Elevator (Malaysia) Sdn Bhd has accepted a letter of award (LOA) from Prasarana Malaysia Bhd for a works contract worth RM62.3 million. (The Edge)
PTT Synergy Group Bhd’s unit PTT Development Sdn Bhd (PTTD) has entered into five separate sale and purchase agreements (SPAs) with Koperasi Kakitangan Bank Rakyat Bhd (Sekatarakyat) for a total consideration of RM260 million. (The Edge)
Binasat Communications Bhd, in which businessman Datuk Eddie Ong holds a 29.82% stake, has terminated a RM73 million acquisition of 241 units of fully furnished hotel suites in Empire City, Damansara Perdana, from Cosmopolitan Avenue Sdn Bhd (CASB). (The Edge)
Disclaimer
The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.
Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.
| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.071799 | 4.100415 |
| EUR | 4.711232 | 4.716020 |
| CNY | 0.605452 | 0.606072 |
| HKD | 0.518862 | 0.522519 |
| SGD | 3.181398 | 3.203847 |