Opening Daily Highlight
Local
Rally Continues, Caution Persists
Fri, 14-Aug-2026 07:09 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI sliding 6.90 points, or 0.40%, to close at 1,734.71, compared with Wednesday's close of 1,741.61. On the broader market, losers outnumbered gainers 692 to 421. The softer close was driven by selling pressure in oil-related counters as investors booked profits following the previous session's rally, with sentiment also weighed down by lingering concerns over the global economic outlook and regional headwinds. By sector, REIT (+0.43%) and Construction (+0.37%) were the only gainers, while Plantation (-1.00%) and Utilities (-0.80%) led the laggers.

  

Global Markets: The Dow Jones inched up 0.13%, or 69.72 points, to 53,839.99, while the S&P 500 adding 0.65% to close at a record 7,798.99, and the Nasdaq gained 0.81% to end at 26,803.03. Brent crude futures shed more than 2% to close at $87.07 per barrel and WTI futures slid more than 2% to settle at $81.25, as traders weighed falling oil demand amid the ongoing U.S.-Iran conflict. On the inflation front, July's producer price index came in unchanged, below expectations for a 0.2% increase, with core PPI rising 0.2% versus the expected 0.3%, following Wednesday's in-line CPI reading of 0.1% month over month, further reinforcing expectations that the Fed will hold off on a September rate hike. Meanwhile, Europe's STOXX 600 slipped 0.04% to close at 659.24, reflecting a broadly subdued tone across the region. In Asia, markets traded mixed, with Japan's Nikkei 225 advancing 1.16% and South Korea's KOSPI jumping 3.56% on strong buying interest, while Hong Kong's Hang Seng bucked the regional strength to ease 0.17% (CNBC).

 

Market Outlook. Softer than expected PPI and CPI readings have reinforced expectations that the Fed will hold rates steady in September, supporting a constructive backdrop for an earnings driven market, even as declining oil prices reflect growing concerns over demand amid the ongoing U.S.-Iran conflict. We remain conservative on the durability of this rally, as much of the recent strength has been concentrated in a narrow group of large-cap tech and AI-linked names, leaving broader market breadth still relatively thin. Locally, easing oil prices could reduce near term earnings momentum for commodity linked counters that had recently outperformed, while broader sentiment on the KLCI may find some support from cooling inflation and steadier regional risk appetite. We stay cautious to conservative on the local market today, as investors weigh moderating inflation and improving rate expectations against lingering uncertainty over the Hormuz situation and its impact on regional trade flows.

 

Sector focus. REIT and Construction counters may see continued interest after bucking Thursday's broader weakness, supported by defensive positioning and steady project flow respectively. Plantation and Utilities could remain under pressure after leading the declines, with sentiment likely staying soft as investors book profits following recent strong runs in both sectors.

 

Technical Commentary: The FBM KLCI closed at 1,734.71, retreating after an early test of 1,742.79. The index remains above its 20-day and 120-day moving averages, while its failure to hold above the 9-day moving average suggests that near-term momentum has weakened. Nevertheless, the broader structure remains technically intact, while repeated rejections near the 1,750-1,760 zone suggest sellers are firmly defending this resistance level. A break below 1,720 would open the door to a deeper pullback towards the 1,700 support, with 1,680 the next line of defence should profit-taking accelerate. The outlook will only become more positive if the index clearly breaks above the 1,750 level. 

 

Company News 

Pharmaniaga Bhd posted a more than three fold jump in net profit to RM12.49 million for the second quarter ended June 30, 2026 (2QFY2026), from RM3.96 million the year before, thanks to interest savings from partial repayment of borrowings and effective inventory management. (The Edge)

 

AirAsia Group Bhd, formerly known as AirAsia X Bhd, posted a net loss of RM527.16 million in the 2QFY2026, widening from RM154.9 million in the preceding quarter, weighed down by a surge in jet fuel prices amid geopolitical tensions in the Middle East, along with foreign exchange losses. (The Edge)

 

LPI Capital Bhd has declared a 65 sen special dividend funded by the proceeds from the sale of its 1.13% stake in Public Bank Bhd, alongside a 25 sen interim dividend for the quarter ended June 30, 2026. (The Edge)

 

Keyfield International Bhd, which reported a steep 65.2% drop in its second-quarter net profit, expects its earnings to improve in the coming quarters, supported by higher vessel utilisation. Its chief financial officer Eugene Kang said all of the group’s vessels, except the newly acquired Keyfield Joyful, are currently on hire, putting the group in a stronger position for the second half of 2026. (The Edge)

 

Gamuda Bhd’s Australian subsidiary, DT Infrastructure Pty Ltd, has secured two engineering, procurement and construction (EPC) contracts for the Ganymirra and Majors Creek solar and battery hybrid projects in Australia from Edify Energy with a combined contract value of A$569 million (about RM1.64 billion). (The Edge)

 

Tomei Consolidated Bhd is partnering pawnbroking operator Ta Yoong Group for its pawnbroking venture. (The Edge)

 

Building materials supplier Chuan Huat Resources Bhd plans to raise as much as RM5.5 million through a private placement to fund the expansion of its wire mesh production capacity in Nilai, Negeri Sembilan. (The Edge)

 

TSR Capital Bhd has secured a RM16.9 million contract to undertake site clearing and earthworks for an industrial development in Seremban, Negeri Sembilan. (The Edge)

 

GuocoLand (Malaysia) Bhd will be delisted from Bursa Malaysia Securities Bhd with effect from 9am on Aug 18, following the completion of its privatisation by controlling shareholder GLL (Malaysia) Pte Ltd (GLLM). (The Edge)

Sentiment: Neutral
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.070951 4.101568
EUR 4.711480 4.714004
CNY 0.605526 0.605844
HKD 0.518993 0.522389
SGD 3.181358 3.202260