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KLCI Eyes Pre-Merdeka Momentum
Thu, 27-Aug-2026 07:39 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI rebounded on Wednesday, rising (+0.70%) to 1,748.54 and snapping a two-day losing streak as trading resumed after the public holiday. Market breadth turned positive, with 777 advancers against 466 decliners, while 582 counters were unchanged. Sector-wise, Utilities (+3.65%), Technology (+2.13%) and Construction (+1.22%) led the gains, while REIT (-1.18%), Plantation (-0.90%) and Telecommunications & Media (-0.52%) were the top laggards.

Global Markets: U.S. equities closed broadly lower overnight, with the Dow Jones Industrial Average declining (-0.21%), while the S&P 500 edged down (-0.02%) and the Nasdaq Composite fell (-0.08%), as investors remained cautious following the latest U.S. inflation data and upcoming Fed guidance at Jackson Hole. The July PCE data showed inflation remained elevated, with core PCE rising 3.3% year-on-year, while Treasury yields were little changed. In Europe, the STOXX Europe 600 was broadly flat, edging down (-0.01%), as weakness in oil and gas stocks was offset by gains in travel, banking and mining counters. Across Asia, markets ended mostly higher, with Japan's Nikkei 225 rising (+0.62%), South Korea's Kospi gaining (+0.97%), Hong Kong's Hang Seng Index advancing around (+0.56%) and China's Shanghai Composite increasing (+0.59%) (CNBC).

Market Outlook. We expect the FBMKLCI to extend its upward momentum, with the index potentially seeing some pre-Merdeka buying interest ahead of the upcoming National Day celebrations. The ongoing earnings season is likely to keep investors selective, with corporate results and the latest company developments continuing to drive individual stock performance. Globally, Nvidia's stronger-than-expected earnings and upbeat revenue outlook could help reinforce confidence in the AI investment theme and support sentiment towards technologyrelated counters. Meanwhile, investors will also closely watch the Jackson Hole symposium later this week for further clues on the Federal Reserve's interest rate outlook. Overall, we expect trading to remain selective, with stronger earnings results and improving sentiment potentially providing further support to individual counters and the broader market.

Sector focus. We expect the Technology sector to remain in focus following Nvidia's strongerthan-expected earnings and upbeat outlook, which could further support sentiment towards AIrelated and semiconductor counters. Domestically-driven and consumer-linked counters could see early support from pre-Merdeka positioning, as patriotic-themed buying and index-linked flows typically build ahead of the national holiday. Meanwhile, Plantation stocks may attract interest following the recent strength in crude palm oil prices.

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI is now testing the key 1,750–1,760 resistance zone, while remaining above its 9- and 20-day moving averages, suggesting that the near-term momentum remains positive. A decisive breakout above 1,755 could reinforce the bullish momentum and pave the way for a stronger upside move. On the downside, 1,720 remains the key support, followed by 1,700 should profit-taking emerge. Overall, the near-term bias remains positive, although a break above the 1,750–1,760 resistance zone is needed to confirm a stronger recovery.

Company News

IJM Corp Bhd has redesignated Datuk Lee Teck Yuen as its non-executive chairman following the retirement of Tan Sri Krishnan Tan Boon Seng after 42 years with the group. (Business Today)

MCE Holdings Bhd has secured RM54.28m worth of 40-month supply contracts from Perodua to supply automotive electronics and mechatronic components for a new ICE vehicle model. Production is expected to commence in 4QFY27 at its new MCE Auto Hub. (Business Today)

WCT Holdings Bhd reported a 33% YoY decline in 2QFY26 revenue to RM370m, while PAT fell 20% to RM13m, mainly due to lower contributions from its property development and engineering & construction segments. (Business Today)

Tan Chong Motor Holdings Bhd narrowed its 2QFY26 loss significantly to RM22.6m from RM60.5m a year earlier, helped by lower operating and interest expenses as well as a smaller forex loss. (Business Today)

APB Resources Bhd independent non-executive chairman Dato' Mior Faridalathrash Wahid has resigned with immediate effect, citing personal reasons and other commitments, after serving in the role for about a year. (Business Today)

Samaiden Group Bhd delivered a strong FY2026, with PAT surging 94.3% YoY to RM39m, supported by accelerated construction progress on LSS5 projects, better project margins and improved cost management. It declared a second interim dividend of 1 sen per share. (Business Today)

Lim Seong Hai Capital Bhd saw 3QFY26 PAT decline 37% YoY to RM15m, while 9MFY26 revenue rose 12.7% to RM366.4m and cumulative PAT remained broadly stable at RM64.4m. It declared a 0.56 sen dividend. (Business Today)

PETRONAS Gas Bhd 1HFY26 PAT slipped 3% YoY to RM942m, mainly due to lower utilities sales volumes during planned turnaround activities and lower product prices. It declared a second interim dividend of 16 sen per share. (Business Today)

Axis Real Estate Investment Trust plans to acquire three adjoining warehouse facilities in Pulau Indah, Klang for RM61m. The properties will be leased back to the vendor for five years, providing recurring rental income. (Business Today)

MN Holdings Bhd reported strong FY2026 results, with PAT surging 92% YoY to RM92.5m and revenue rising 61% to RM869.2m, mainly driven by strong growth in its substation engineering segment. (Business Today)

Supermax Corp Bhd returned to profitability in 4QFY26, recording PAT of RM79.8m, supported by higher ASPs, stronger demand and better cost efficiency. However, its FY2026 net loss widened slightly to RM154m. (Business Today)

Bank Islam Malaysia Bhd has appointed Dato' Wan Mohd Fadzmi Che Wan Othman Fadzilah as its new independent non-executive chairman, effective Aug 27, succeeding Tan Sri Dr Ismail Bakar, who retired on Aug 22. (Business Today)

Sentiment: Positive
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