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Oil Surge on Renewed Iran Strikes Clouds KLCI’s Long Weekend Break
Tue, 01-Sep-2026 07:58 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI fell 0.91% to close at 1,725.88 on Friday, as broad-based selling ahead of the Merdeka Day long weekend weighed on sentiment across the board. Market breadth was decisively negative, with 917 losers against 405 advancers, while 260 counters were unchanged. Sector losses were led by Technology (-3.65%) and Utilities (-2.41%), while Industrial Products (-0.06%) and Plantation (-0.36%) posted the smallest declines as all thirteen sector indices closed lower.

 

Global Markets: US equities fell for a second straight session on Monday, with the Dow Jones down 0.70% to 53,186, the S&P 500 off 0.33% to 7,686 and the Nasdaq Composite down 0.12% to 26,370, as fresh US strikes on Iranian rocket launchers near the Strait of Hormuz and Tehran's retaliation sent oil surging and revived inflation concerns following Fed Chair Kevin Warsh's hawkish Jackson Hole remarks on Friday, in which he called 3.7% inflation "concerning" and said he'd be "hard-pressed" to call conditions restrictive. Trump's weekend announcement of a deal granting the US control of 65 billion barrels of Venezuelan oil reserves, aimed at eventually lowering gas prices, was overshadowed by the Iran-driven spike and showed no discernible market impact. European markets eased on the same oil and yield pressures, with the STOXX Europe 600 down 0.62% to 651.10. Asian markets were mixed: Japan's Nikkei 225 slipped 0.14% to 66,311.93 and Hong Kong's Hang Seng eased 0.07% to 25,566.99, while South Korea's Kospi rose 0.46% to 6,820.02 and China's Shanghai Composite gained 0.86% to 3,986.30 despite factory activity staying contractionary for a second month (CNBC).

 

Market Outlook. Regional sentiment turned defensive over the long weekend after fresh US-Iran strikes near the Strait of Hormuz sent oil surging, while Fed Chair Kevin Warsh's hawkish Jackson Hole remarks lifted September rate-hike bets. Investors will also focus on a heavy data week, headlined by US non-farm payrolls on Friday. Barring further escalation in the Middle East, Overall, we expect the FBM KLCI to open cautiously on Tuesday, with earnings season continuing to drive individual stock performance alongside broader macro crosscurrents.

 

Sector focus. We expect the Technology sector should remain in focus following Nvidia's blowout earnings and bullish AI demand outlook, Energy counters bear watching too, as crude surged over the weekend on renewed US-Iran strikes near the Strait of Hormuz. Meanwhile, the Plantation stocks may also attract interest amid firmer CPO prices, with futures closing broadly higher on Friday. 

Technical Commentary: The FBM KLCI remains below the key 1,750–1,760 resistance zone after retreating from its intraday high. The index has also slipped below its 9- and 20-day moving averages for the first time during the recent recovery, signalling a loss of near-term momentum. A decisive break below 1,720 would reinforce the bearish bias and pave the way towards the 1,700 level. On the upside, 1,755 remains the immediate resistance, followed by the 1,770–1,775 region should stronger buying momentum emerge.

 

Company News 

Yinson Holdings Bhd's major shareholder, Yinson Legacy Sdn Bhd, confirmed that it is in preliminary talks with MISC Bhd over a potential privatisation of the oil and gas firm. (The Edge)

Gamuda Bhd has secured contracts worth a combined RM3.57 billion to build two hyperscale data centres in Port Dickson, Negeri Sembilan. (The Edge)

WCT Holdings Bhd has secured a RM600.9 million contract to build a 41-storey office tower at the Tun Razak Exchange. (The Edge)

Zetrix AI Bhd has clarified that it has no links with former human resources minister Datuk Seri M Saravanan, who has been charged with corruption in relation to the approval of foreign worker quotas for a local company in 2022. (The Edge)

HeiTech Padu Bhd, whose share price tumbled to a 30-month low on Friday, said it is unaware of any reason behind the sharp decline after the stock exchange regulator issued an UMA query. (The Edge)

CIMB Group Holdings Bhd’s net profit for 2QFY2026 edged up 1.2% to RM1.94 billion from RM1.89 billion a year earlier, supported by broad-based performance across all businesses.. (The Edge)

Capital A Bhd posted its second consecutive quarterly profit following the disposal of its aviation business, with stronger aircraft maintenance and logistics operations offsetting softer travel demand. (The Edge)

RHB Bank Bhd’s net profit for 2QFY2026 edged up to RM807.15 million compared to RM803.50 million a year earlier, as higher net interest income and lower provisions offset a decline in non-interest income. (The Edge)

Axiata Group Bhd's net profit from continuing operations rose in 2QFY2026 from a year earlier mainly on the absence of goodwill impairment. (The Edge)

IOI Corporation Bhd's net profit for the fourth quarter ended June 30, 2026 (4QFY2026) rose 17% to RM501 million from RM437 million, driven by improved performance in the resource-based manufacturing segment (The Edge)

Hengyuan Refining Company Bhd resumed dividend payments after a four-year hiatus with a 10 sen interim dividend, following a 2QFY2026 net profit of RM600.54 million, its highest since 2022 and a fourth consecutive profitable quarter (The Edge)

Sarawak Oil Palms Bhd’s 2QFY2026 net profit jumped 67.2% to RM153.69 million from RM91.92 million a year earlier, thanks to higher sales volumes and realised prices of crude palm oil and palm kernel. (The Edge)

Hibiscus Petroleum Bhd's 4QFY2026 net profit more than doubled, rising 155.6% to RM190.72 million, driven by higher realised oil and gas prices under its PM3 CAA PSC and strong operating performance in Malaysia. (The Edge)

Berjaya Corp Bhd narrowed its 2QFY2026 net loss to RM109.02 million from RM207.2 million a year earlier, supported by stronger operating performance across its business segments and lower net investment-related expenses. (The Edge)

Eversendai Corp Bhd posted a net loss of RM10.63 million for the second quarter of 2026 and expects to settle claims over its cancelled structural steel contract for the Trojena Ski Village by 1Q or 2Q2027. (The Edge)

Farm Fresh Bhd’s net profit for the first quarter ended June 30, 2026 (1QFY2027) declined 18% to RM26.82 million from a year earlier, due to higher cost of fuel and plastic bottles. (The Edge)

Sentiment: Neutral
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