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KLCI Eyes Earnings and Global Cues
Wed, 26-Aug-2026 07:16 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI ended marginally lower on Monday, edging down (- 0.01%) to 1,736.33 as investors remained cautious amid weaker regional sentiment, while the ongoing earnings season and the holiday-shortened trading week kept trading activity subdued. Market breadth remained negative, with 714 decliners against 482 advancers, while 539 counters were unchanged. Sector-wise, Plantation (+0.74%), Transportation & Logistics (+0.91%) and Telecommunications & Media (+0.63%) led the gains, while Utilities (-1.71%), Technology (- 1.43%) and Property (-0.52%) were the top laggards.

Global Markets: U.S. equities closed higher overnight, with the Dow Jones Industrial Average rising (+0.30%), the S&P 500 gaining (+0.32%) and the Nasdaq Composite advancing (+0.66%), supported by a rebound in semiconductor stocks as Treasury yields continued to decline. Nvidia rose 2%, snapping a seven-day losing streak, while AMD and Micron gained (+4.90%) and (+2.50%), respectively, ahead of Nvidia's earnings due on Wednesday. However, consumer sentiment was weighed by weaker-than-expected U.S. consumer confidence data and escalating trade tensions between the U.S. and Canada. Oil prices also declined sharply, with Brent crude falling (-5.39%) to US$87.04 per barrel as the U.S. shifted towards economic pressure on Iran, easing concerns over a renewed conflict in the Persian Gulf. In Europe, the STOXX Europe 600 advanced (+0.35%), with technology, retail and travel stocks leading the gains, while the autos sector lagged amid fresh tariff concerns. Across Asia, markets ended mixed, with Japan's Nikkei 225 rising (+0.50%), South Korea's Kospi gaining (+0.68%) and China's Shanghai Composite advancing (+0.19%), while Hong Kong's Hang Seng Index edged down (-0.02%) (CNBC).

Market Outlook. We expect the FBM KLCI to trade cautiously with a mildly positive bias as trading resumes following Tuesday’s public holiday, supported by resilient domestic fundamentals. However, the ongoing earnings season is likely to keep investors selective, with corporate results and company developments driving individual stock performance. Globally, investors will focus on Nvidia’s earnings, U.S. GDP and PCE inflation data, as well as the Jackson Hole symposium for clues on the Federal Reserve’s rate outlook. Meanwhile, easing U.S. Treasury yields and lower geopolitical tensions surrounding Iran may provide some relief to risk sentiment, although external uncertainties could continue to cap market upside. Overall, we expect trading to remain selective, with stronger earnings likely to provide the key catalyst for individual counters and the broader market.

Sector focus. Technology sector to remain in focus ahead of Nvidia's earnings, which could influence sentiment towards AI-related counters. Meanwhile, Energy and Plantation stocks may face pressure following the sharp pullback in crude oil prices, while investors are likely to stay selective towards companies delivering resilient earnings results.

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI has regained some near-term momentum, remaining 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

Kuala Lumpur Kepong Bhd slipped into a RM1.34 billion 3Q loss after a RM1.62 billion impairment on its stake in Synthomer, while parent Batu Kawan Bhd was also dragged into a quarterly loss. Excluding the impairment and Synthomer losses, KLK's underlying profit would have risen 28%. (The Edge)

Khee San Bhd's largest shareholder Datuk Seri Ngu Tieng Ung resigned as executive chairman, three days after six bank accounts of a key subsidiary were frozen under an anti-money laundering probe. (The Edge)

Foodie Media Bhd signed an MOU with Tourism Malaysia to support the Visit Malaysia 2026–2027 campaign through digital content creation and event coverage. (The Edge)

Sime Darby Property Bhd more than doubled its 2Q net profit to RM322 million and raised its dividend payout policy to 40%-60% of net profit, supported by stronger property development and growing recurring income. (The Edge)

WCE Holdings Bhd is reviewing the viability of the proposed West Coast Expressway southern extension, with its decision dependent on project costs, land acquisition, funding and government support. (The Edge)

Sunway Construction Group Bhd reported a 23.5% increase in 2Q net profit despite a 31.1% decline in revenue, while its RM6.85 billion YTD order wins have exceeded its initial FY2026 target. (The Edge)

Zetrix AI Bhd posted a 35% increase in 2Q net profit, driven by contributions from its AI, Web3 and blockchain businesses, and declared a 0.25 sen interim dividend. (The Edge)

Guan Chong Bhd reported record 2Q earnings, with net profit rising fivefold despite lower revenue, as cost reductions and lower finance costs more than offset weaker cocoa product prices. (The Edge)

Cahya Mata Sarawak Bhd returned to profitability in 2Q, although commissioning of its Samalaju yellow phosphorus plant has been delayed to 4QFY26 due to equipment issues. (The Edge)

Ajinomoto (Malaysia) Bhd reported a 3.9% decline in 1Q net profit, mainly due to weaker exports amid a softer US dollar and Middle East geopolitical issues. (The Edge)

Pestec International Bhd named several former senior executives and two China-based suppliers in its fraud and conspiracy lawsuit involving alleged dubious transactions, inflated invoices and an unauthorised guarantee. (The Edge)

Sentiment: Positive
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