Malaysian Market Review. The FBM KLCI rose by 7.47 points, or 0.43%, to close at 1,733.36. However, market breadth remained negative, with 762 losers against 438 gainers, while 576 counters were unchanged. Higher market exposure toward defensive names such as Plantation stocks were supported by their defensive earnings profile and higher commodity gains during a period of geopolitical uncertainty. Sector-wise, Plantation (+0.68%), Industrial Products (+0.78%), and Finance (+0.29%) were the main gainers while Consumer (-0.78%) and Utilities (-1.17%) were the main laggards.
Global Markets: The S&P 500 declined 0.69% to 7,691.76, while the Nasdaq Composite slipped 1.33% to 26,289.71. The Dow Jones Industrial Average fell 0.22%, to 53,343.40. Pressure was believed to have risen from lingering Middle East tensions while elevated bond yields fed concerns about broader borrowing costs (Reuters). In economic news, July U.S. Industrial activity expanded with industrial production rising 0.2% MoM, following a 0.3% MoM rise in June with the latest report suggesting a steady and modest growth. In addition, the low level of Manufacturing capacity utilisation suggested that further room for expansion was possible. Regarding the Middle-East conflict, President Trump has said that the U.S. was not in any ongoing negotiations with Iran nor were there any intention to begin said talks. The pan-European STOXX 600 fell 0.69% to 651.90 with Middle-East tensions continuing to affect the sentiment and outlook for the region. In Asia, markets closed negative with Japan's Nikkei 225 falling 2.54%, the KOSPI Index falling 1.55%, and the Shenzhen Index falling 0.56%.
Market Outlook. Given the overnight decline on Wall Street and lingering Middle East tensions, Malaysian equities are likely to trade cautiously today. Meanwhile, we expect the FBM ACE Index to face profit-taking following its recent strong rally. Hence, we advise traders to lock in some profits. Nevertheless, local equities should remain supported by selective buying in defensive names. Globally, sentiment is likely to remain fragile, with volatile oil prices, ongoing Middle East developments and elevated sovereign bond yields weighing on fundamentals, particularly across technology and other growth-sensitive sectors.
Sector focus. Plantation, financial and selected industrial names may continue to benefit from resilient earnings and firm commodity prices, while consumer and growth-oriented stocks could remain relatively subdued. Overall, sector performance continues to remain selective with defensive counters expected to be favoured.
Technical Commentary: The FBM KLCI has been hovering around its 9- and 20-day moving averages, reflecting indecision within its prevailing downward channel. Repeated rejections at the 1,750–1,760 zone suggest that sellers remain firmly in control of this resistance area. A break below 1,720 could trigger a deeper pullback towards the 1,700 support, with 1,680 emerging as the next key support level if profit-taking intensifies. The outlook would turn more constructive only if the index decisively breaks above 1,750.
Company News
AMMB Holdings Bhd's net profit came in higher at RM520.23 million in the first quarter ended June 30, 2026 (1QFY2027), up marginally from RM516.18 million a year ago. (The Edge)
Duopharma Biotech Bhd reported a 48% earnings jump in the second quarter thanks to higher-margin products and a stronger ringgit that lowered input costs. (The Edge)
Four shareholders have withdrawn their requisitions to remove four directors of Destini Bhd ahead of an extraordinary general meeting on Friday (Aug 21). (The Edge)
West River Bhd has won approval for two small hydropower projects in Perak under the feed-in-tariff programme. (The Edge)
Dutch Lady Milk Industries Bhd's second-quarter net profit rose to RM38.2 million — its highest quarterly profit in five years — from RM23.4 million in 2QFY2025, driven by stronger revenue, favourable exchange rate effects and the absence of one-off transition costs incurred a year earlier. (The Edge)
Johor Plantations Group Bhd’s second-quarter net profit fell 32% to RM51.15 million from RM75.19 million a year ago, weighed down by higher production costs. (The Edge)
KPJ Healthcare Bhd reported a 27% increase in its second-quarter net profit to RM103.92 million from RM82.02 million a year earlier, driven by higher patient visits, more surgeries and improved case mix. (The Edge)
Highway concessionaire WCE Holdings Bhd saw an 11.2% growth in its toll revenue for the first quarter of its financial year 2027, keeping operational earnings before interest, taxes, depreciation and amortisation (Ebitda) positive, even as financing costs kept its bottom line in the red with a net loss of RM24.5 million — little changed from the RM25.33 million recorded a year ago. (The Edge)
DRB-Hicom Bhd’s second-quarter net profit fell 47.4% to RM30.56 million from RM58.09 million a year earlier, as it booked a tax expense of RM26.56 million compared with a RM4.49 million tax credit in the same quarter last year, while costs rose. (The Edge)
ITMAX System Bhd has secured a RM186.84 million contract from the Social Security Organisation (Socso) to develop and operate an artificial intelligence (AI)-powered employment portal. (The Edge)
Glovemaker Kossan Rubber Industries Bhd has proposed to acquire two cleanroom product businesses for RM48.41 million. (The Edge)
Lotte Chemical Corp is reviving plans to sell Lotte Chemical Titan Holding Bhd as well as a stake in its Indonesian unit, Korea Economic Daily reported. (The Edge)
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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.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.043919 | 4.076373 |
| EUR | 4.698731 | 4.703540 |
| CNY | 0.601593 | 0.602209 |
| HKD | 0.515790 | 0.519424 |
| SGD | 3.166585 | 3.188978 |