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Inflation Fears Mount as Oil Surges
Fri, 11-Sep-2026 07:02 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI declined 8.82 points, or 0.51%, to close at 1,705.52, from Wednesday's close of 1,714.34, with market breadth turning negative as decliners outpaced gainers 657 to 532. Sentiment weakened further as the escalating conflict around the Strait of Hormuz pushed crude oil prices higher, reviving concerns over another inflationary shock, with investors remaining cautious amid heightened geopolitical tensions and soaring energy costs that could continue to weigh on the market. Healthcare (+7.02%) and Industrial Products (+0.44%) led the gainers while Consumer (-0.82%) and Transportation & Logistic (-0.80%) topped the laggards. 

 

Global Markets: The Dow closed down 316.56 points, or 0.60%, to 52,064.10, the S&P 500 fell 0.58% to 7,591.70, while the Nasdaq slid 0.65% to 26,081.72. WTI closed at $102, up 6.7%, and Brent settled at $107, up 5.9%, both hitting their highest close since May, pushing the 10-year Treasury yield above 4.95%, its highest since October 2023. High-beta chip stocks led losses on fears higher rates and oil could slow the economy, with Intel sliding 5.6% and Micron falling 4.7%, while August PPI rose 0.4% as expected, failing to ease concerns ahead of Friday's key CPI report. Meanwhile, Europe's STOXX 600 tumbled 0.69% to 635.97, weighed down by escalating Middle East tensions and surging oil prices. Asian markets traded mixed on Thursday, with Japan's Nikkei 225 edging up 0.20% even as South Korea's KOSPI eased 0.25% and Hong Kong's Hang Seng fell 1.27%, as investors reassessed the impact of elevated oil prices and firmer US Treasury yields on regional growth and monetary policy outlooks (CNBC). 

 

Market Outlook. Thursday's PPI release was inconclusive in settling the "hike or no hike" debate, but WTI surging back above $100 and Treasury yields hitting new highs raise the stakes ahead of Friday's crucial CPI report. We stay cautious on near-term global risk appetite, as the combination of surging oil prices, rising Treasury yields, and an increasingly hawkish rate outlook creates a fragile backdrop heading into the pivotal inflation print and next week's Fed decision. For the KLCI, we expect sentiment to remain cautious in the near term, as elevated crude prices continue to raise cost pressures across the broader market, with investors awaiting greater clarity on the West Asia conflict and the US interest-rate outlook.

 

Sector focus. Energy counters may extend their gains as Brent crude holds above US$100 amid the escalating West Asia conflict, with Plantation also seeing some interest given indirect CPO price support. Conversely, Consumer and Transportation & Logistic may stay under pressure amid elevated energy costs. 

 

Technical Commentary: The FBM KLCI slipped further on Thursday, losing 8.82 points to close at 1,705.52, extending its retreat from recent highs near 1,760. The index has now fallen below its EMA9, EMA20 and EMA120, a break that signals that the near-term rebound has lost momentum and the broader uptrend structure is starting to weaken. A decisive break below 1,700 would open the door to a retest of 1,685, while failure to hold that level risks exposing the index to a slide back towards the 1,640–1,660 zone. For the rebound to look more convincing, the index needs to move back above the EMA9 and EMA20 and break above the 1,720–1,725 level. 

 

Company News 

IHH Healthcare Bhd’s Singapore unit Northern TK Venture (NTK) has lost its lawsuit seeking more than ¥200 billion (about RM5.3 billion) in damages from Japanese drugmaker Daiichi Sankyo Co Ltd after the Tokyo District Court on Thursday dismissed all of NTK’s claims and ordered the company to bear the litigation costs. (The Edge)

 

Lim Seong Hai Capital Bhd said the proposed Bandar Malaysia-Seri Kembangan Expressway (BSE) is estimated to cost RM1.75 billion to build, with a proposed concession period of 60 years including four years for construction, after receiving a government letter informing it that the Cabinet had agreed in principle to the highway project.(The Edge)

 

Alam Maritim Resources Bhd said an interim executive committee will oversee its operations after CEO Datuk Azmi Ahmad was placed on temporary garden leave amid graft charges. (The Edge)

 

Higher contributions from associate companies and stronger Mazda sales lifted Bermaz Auto Bhd’s net profit nearly fivefold in the first quarter. (The Edge)

 

Paragon Globe Bhd has secured a RM45.16 million contract from an unnamed data centre operator for earthworks and retaining wall works at a data centre development in Johor. (The Edge)

 

AME Elite Consortium Bhd has agreed to acquire four parcels of freehold land spanning 176.5 acres in Pontian, Johor, within the Johor-Singapore Special Economic Zone (JS-SEZ), for RM199.8 million in cash.(The Edge)

 

HE Group Bhd has secured an estimated RM25 million purchase order to undertake power distribution system works for a Malaysian manufacturer of NAND flash memory products. (The Edge)

Sentiment: Neutral
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