Malaysian Market Review. The FBM KLCI eased 0.39 of a point to 1,714.40, from Monday's close of 1,714.79. The broader market was evenly balanced, with decliners leading gainers 548 to 546. Across the region, major indices retreated as investors locked in profits, with sentiment also tempered by higher oil prices and firmer US Treasury yields, which reinforced concerns over inflation and the prospect of tighter monetary policy. Technology (+2.00%) and Construction (+1.93%) led the gainers while Healthcare (-1.02%) and Property (-0.53%) topped the laggards.
Global Markets: The Dow dropped 628.18 points, or 1.18%, to close at 52,786.07, while the S&P 500 eased 0.58% to 7,673.52 and the Nasdaq fell 0.32% to 26,421.41. Oil prices continued climbing, with WTI rising for a sixth straight day and Brent settling near $98, after the U.S. and Iran exchanged blows over the weekend, pushing Treasury yields to multi-year highs and sharpening investor focus on this week's key US inflation data. Meanwhile, Europe's STOXX 600 slipped 0.05% to 649.60. Asian markets traded broadly lower on Tuesday, with South Korea's KOSPI falling 0.58% and Japan's Nikkei 225 dropping 1.70%, as investors locked in profits following the region's recent advance amid higher oil prices and firmer US Treasury yields, while Hong Kong's Hang Seng also eased 0.38% in line with the softer regional tone (CNBC).
Market Outlook. An upside surprise in the CPI reading would make it difficult for the Fed to avoid a rate hike, with investors' attention squarely focused on this week's inflation data as the key determinant of the Fed's next move. We stay cautious on near-term global risk appetite, as the combination of surging oil prices, rising Treasury yields, and escalating Middle East tensions creates a challenging backdrop heading into a pivotal inflation print and FOMC decision, even as resilient strength in semiconductors offers some offsetting support. For KLCI, external developments are likely to dictate near-term direction, with investors watching the Strait of Hormuz situation and Friday's US inflation data. We stay conservative on the KLCI this week, as the rotation into smaller-cap names suggests investors remain unwilling to commit meaningfully to index heavyweights amid persistent geopolitical and rate uncertainty, with upside likely capped until there's greater clarity on both the Hormuz situation and the Fed's policy path.
Sector focus. Construction and Technology counters may extend their gains, underpinned by continued rotation into smaller-cap names as investors take selective positions despite cautious broader sentiment. Energy counters could also stay in focus given elevated crude oil prices amid ongoing Strait of Hormuz tensions. Conversely, rate-sensitive sectors such as REIT and Property may continue to stay under pressure as investors position ahead of Friday's US inflation data.
Technical Commentary: The FBM KLCI eased 0.39 points to close at 1,714.40, essentially flat as the index continues to consolidate below both its EMA9 and EMA20. The index is still well above its EMA120. However, the index continues to trade within the well-defined downward-sloping channel that has capped upside since the February peak, and yesterday’s pause reinforces the view that a more decisive move is needed before the recovery can be considered confirmed. Downside support sits at 1,700, and a slip below that level would put 1,685 back in play. A break above the 1,720–1,725 zone is needed to confirm more than a technical bounce, with the 1,750–1,755 zone remaining the key resistance to watch for a trend shift.
Company News
Public Bank Bhd is proposing to privatise its 73.23%-owned Hong Kong-listed subsidiary Public Financial Holdings Ltd (PFHL) for HK$2.50 per share, or about RM1.29, in cash. (The Edge)
Malayan Banking Bhd has received Bank Negara Malaysia approval to acquire the remaining 30.95% stake in Maybank Ageas Holdings Bhd, the holding company of Etiqa, from Belgian insurer Ageas SA for RM4.83 billion. (The Edge)
Hektar REIT has appointed Datuk Seri Jamil Bidin, 69, as chairman, effective immediately, filling the position that has been vacant since 2023 following Hasli Hashim’s resignation. (The Edge)
More boardroom changes were seen at companies linked to Zetrix AI Bhd founder Wong Thean Soon, better known as TS Wong. At Cuscapi Bhd, newly appointed independent director Datuk Faizal Abdullah was redesignated as chairman, days after being appointed chairman of Sersol Bhd on Sept 3. (The Edge)
Over at HeiTech Padu Bhd, former NexG Bhd director Badrul Hisham Abdul Aziz, who also chairs Kanger International Bhd, joined the board as a non-independent non-executive director. (The Edge)
Meanwhile, Wong trimmed his stake in Excel Force MSC Bhd after disposing of 104.21 million shares on Aug 28 and Sept 1, reducing his direct stake to 7.234%, or 44.12 million shares. (The Edge)
Information communication and technology service provider Theta Edge Bhd has secured a five-year contract from Prasarana Malaysia Bhd to develop, operate and maintain telecommunications infrastructure along the LRT3 corridor. (The Edge)
Crane manufacturer Favelle Favco Bhd has secured four contracts worth RM131.7 million to supply cranes. (The Edge)
TRC Synergy Bhd has secured a RM149.98 million subcontract from Gamuda Bhd’s engineering arm for underground services works at a hyperscale data centre. (The Edge)
QES Group Bhd said its 70%-owned subsidiary QES (Singapore) Pte Ltd has agreed to acquire two freehold office units in Singapore for S$5.47 million (RM17.48 million) cash. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.048024 | 4.078329 |
| EUR | 4.715244 | 4.722339 |
| CNY | 0.605359 | 0.605680 |
| HKD | 0.516167 | 0.520051 |
| SGD | 3.197539 | 3.221693 |