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Bargain Hunting Lifts KLCI Despite Broad Market Weakness
Thu, 03-Sep-2026 07:13 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI rose 0.48% to close at 1,708.74, as bargain hunting emerged in banking and commodity-linked heavyweights following Tuesday's sell-off, with crude oil's climb above $92 a barrel on renewed US strikes on Iran lending additional support to energy and plantation counters. Market breadth stayed negative despite the index's gain, with decliners outnumbering advancers 746 to 424, underscoring the narrow, heavyweight-led nature of the rebound. Plantation (+2.28%) and Energy (+1.53%) led sectoral gains while Technology (-2.03%) and Telecommunications & Media (-1.00%) lagged.

 

Global Markets: Wall Street staged a rebound on Wednesday, snapping back from two losing sessions as oil cooled and NY Fed's Williams struck a dovish tone on rates, even as Trump claimed "almost total control" of the Strait of Hormuz and warned of a larger strike "waiting in the wings." The Dow rose 0.56% to 53,061.95, the S&P 500 gained 0.46% to 7,666.60, and the Nasdaq added 0.45% to 26,217.83. Europe extended its losing streak to a third session, with the STOXX Europe 600 down -0.24% to 645.91 on lingering oil and yield pressure. Asian markets sold off earlier on Wednesday on carry-over from Tuesday's Wall Street rout, with the Kospi tumbling -3.99%, the Nikkei 225 off -2.85%, the Shanghai Composite down -0.97%, and the Hang Seng little changed at -0.07%. (CNBC).

 

Market Outlook. Sentiment turned more constructive by Wednesday's close as oil's spike cooled and soft US private payrolls data reinforced bets that the Federal Reserve can hold rates, helping Wall Street snap a two-day losing streak even after a sharp selloff across Asian markets earlier in the day. Investors will now focus on Bank Negara Malaysia's interest rate decision on Thursday, where consensus expects the OPR to be held steady at 2.75%, alongside US ISM Services PMI and non-farm payrolls due Friday for further signals on the Fed's policy path. Barring a fresh escalation in the Middle East, we expect the FBM KLCI to extend its rebound cautiously on Thursday, with the improved global risk tone providing some support even as earnings season continues to drive individual stock performance.

 

Sector focus. Energy remains one to watch as Brent crude still trades close to $95 a barrel on lingering Strait of Hormuz risk. Plantation should also stay in focus given its correlation with elevated crude levels, which typically lift biodiesel-linked demand for palm oil. Banking counters bear watching into Thursday's Bank Negara rate decision, where a widely expected hold at 2.75% should limit near-term volatility.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI's dip to an intraday low of 1,695.89 yesterday briefly breached the 1,700 level flagged in our previous note, but the index staged a rebound to close 0.48% higher at 1,708.74. The bounce, however, stayed well short of the 1,720-1,730 resistance zone we had flagged as the ceiling for any recovery attempt, keeping the broader downward channel intact. A more decisive move above 1,720-1,730 would be needed to threaten the key 1,750-1,760 resistance, while a renewed slide back below 1,700 would reopen the path towards 1,685. For now, we view today's bounce as a technical relief rally within the prevailing downtrend rather than a confirmed reversal.

 

Company News 

AirAsia Group Bhd has confirmed plans to raise up to US$1 billion (RM4.05 billion) from the international debt market and RM700 million in local credit facilities for the primary use of refinancing existing borrowings and strengthening its balance sheet. (The Edge)

Sersol Bhd announced that Peh Lon Pah @ Pei Tze Chiang has emerged as a substantial shareholder after acquiring 100 million shares, representing a 12.429% direct stake, via an off-market transaction on Sept 1. (The Edge)

MyMBN Bhd reported that non-independent and non-executive chairman Liw Chong Liong is no longer a substantial shareholder after selling his entire stake. (The Edge)

The Employees Provident Fund (EPF) has become the third-largest shareholder in Eco-Shop Marketing Bhd after buying 8.68 million shares, raising its holding to 5.14%, or 296.16 million shares. (The Edge)

Mulpha International Bhd has invested US$7 million (RM28.28 million) in the SHK Latitude Alpha Fund, a multi-manager hedge fund portfolio, to improve risk-adjusted returns. (The Edge)

Central Global Bhd plans to raise up to RM83.31 million via private placement to fund construction projects in Sabah (The Edge)

KJTS Group Bhd said its Thai unit, KJTN Engineering Co Ltd, has secured four 20‑year service agreements with subsidiaries of Central Plaza Hotel PCL (Centel). (The Edge)

A unit trust fund managed by Kenanga Investors Bhd has become a substantial shareholder in Sern Kou Resources Bhd. (The Edge)

Sentiment: Neutral
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