Malaysian Market Review. The FBM KLCI rose by 5.39 points, or 0.31%, to close at 1,736.71. Market breadth remained negative, with 610 losers against 577 gainers, while 610 counters were unchanged. A softer yield environment had provided relief for growth stocks while selective stock selection continues. Sector-wise, Construction (+1.24%), Utilities (+0.53%), and Plantations (+0.51%) were the main gainers while Industrial Products (-1.06%), REIT (-0.33%) and Energy (-0.30%) were the main laggards.
Global Markets: US markets were generally negative with the S&P 500 falling 0.87% to 7,641.16, the Nasdaq Composite falling 1.00% to 26,067.17, and the Dow Jones Industrial Average falling 1.32% to 52,759.21. The softer performance was attributed to reduced risk appetite after bond yields advanced during the market session, raising concerns of borrowing costs. This also comes as U.S. crude oil prices closed above $90, leading to questions about consumer resilience. In economic news, the US Initial Jobless Claims report was slightly stronger than expected. For the week ended August 15, initial claims fell 6,000 to 206,000, versus the Reuters consensus of 210,000. The previous week's figure was revised up to 212,000. Claims therefore remain toward the bottom of their 189,000–230,000 range for 2026, suggesting companies are still reluctant to shed workers despite softer economic and hiring conditions. The pan-European STOXX 600 fell marginally by 0.12% to 651.16, declining for the seventh session in a row due to higher oil prices reviving inflation concerns. In Asia, markets closed generally positive with the KOSPI rising 5.89%, the Nikkei 225 Index rising 1.36%, and the JCI rising 1.68%.
Market Outlook. The FBM KLCI is expected to trade with a cautiously positive bias, supported by Malaysia’s resilient domestic fundamentals but tempered by elevated global bond yields and geopolitical risks. Higher crude oil prices could provide some support to oil and gas-related counters although a prolonged rise in energy prices would eventually increase input costs and inflationary pressures. Globally, the near-term outlook remains more selective and defensive. While global economic data does not presently point to a severe downturn, higher energy prices, fiscal concerns and sticky long-term yields create a less supportive valuation environment.
Sector focus. Construction and Utilities may retain a positive bias on infrastructure and data-centre spending, while Plantations remain supported by firm commodity prices. Industrial Products may stay volatile amid softer demand, REITs constrained by elevated yields, and Energy mixed amid oil price support and geopolitical uncertainties.
Technical Commentary: The FBM KLCI has regained some near-term momentum, moving back above its 9- and 20-day moving averages and holding above the 1,720 level. However, the index remains within the broader downward channel, with the 1,750–1,760 zone continuing to cap upside. A decisive break above 1,760 would signal a stronger recovery, while failure to hold 1,720 could trigger a pullback towards 1,700, followed by 1,680. Overall, the near-term bias has improved slightly, but the broader trend remains cautious.
Company News
Kossan Rubber Industries Bhd’s net profit for the three months ended June 30, 2026 (2QFY2026) surged to RM64.47 million — the highest quarterly net profit since FY2022 — from RM31.15 million a year ago. (The Edge)
Mah Sing Group Bhd has agreed to dispose of a piece of land in Sepang, Selangor, for RM617.86 million cash to data centre developer WG Malaysia X Sdn Bhd. (The Edge)
Sunway Healthcare Holdings Bhd's net profit rose to RM78.16 million in the three months ended June 30, 2026 (2QFY2026) from RM41.39 million a year earlier. (The Edge)
Telekom Malaysia Bhd's second-quarter net profit fell 9.3% to RM365.48 million from RM402.97 million a year earlier. (The Edge)
TXCD Bhd, formerly known as Ageson Bhd, has been granted another six-month extension until Feb 7, 2027 to submit its revised regularisation plan to Bursa Securities. (The Edge)
7-Eleven Malaysia Holdings Bhd’s net profit in 2QFY2026 plunged 58.5% to RM8.28 million from RM19.96 million a year earlier, after rapid expansion of its store network pushed operating costs higher. (The Edge)
Malayan Cement Bhd’s net profit for the three months ended June 30, 2026 (4QFY2026) was RM222.92 million, a 35% increase from the same quarter a year earlier, outpacing a 17% y-o-y growth in revenue to RM1.29 billion. (The Edge)
YTL Corp Bhd’s fourth-quarter net profit fell 47.1% to RM327.56 million from RM618.91 million for 4QFY2025, though revenue rose more than 15% to RM8.81 billion from RM7.65 billion. (The Edge)
Genting Bhd posted a net loss of RM27.10 million for the three months ended June 30, 2026 (2QFY2026), compared with a net profit of RM243.50 million a year earlier. (The Edge)
Magnum Bhd announced that it plans to progressively resume its operations in Kedah, as it posted an 8.4% growth in its second-quarter net profit compared with the same period a year ago, as profit margin expanded amid lower gaming prize payouts. (The Edge)
Dialog Group Bhd’s fourth-quarter net profit rose 13.6% y-o-y to RM167.47 million from RM147.38 million, as stronger contributions from its businesses, particularly in Malaysia, lifted earnings. (The Edge)
Malaysian Pacific Industries Bhd, which provides outsourced semiconductor packaging and testing services, saw only a marginal rise in its latest quarterly net profit despite a 30.6% jump in revenue as higher costs and taxation ate into its bottomline. (The Edge)
Bursa Malaysia has publicly reprimanded property developer Hua Yang Bhd for breaching listing rules governing the purchase of its own shares, after the company acquired 4.48 million shares from a shareholder through a direct business transaction instead of the market. (The Edge)
LBS Bina Group Bhd’s net profit for the quarter ended June 30, 2026 (2QFY2026) fell 44.4%, mainly because the previous year had benefitted from a reversal of contingency sum no longer required for completed projects. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.028078 | 4.060496 |
| EUR | 4.729360 | 4.738927 |
| CNY | 0.601158 | 0.601778 |
| HKD | 0.513500 | 0.517628 |
| SGD | 3.169857 | 3.195407 |