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Bargain Hunting meets Wall of Worry
Tue, 15-Sep-2026 07:27 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI gained 11.27 points, or 0.67%, to close at 1,698.01, from Monday's close of 1,686.74, with market breadth remaining negative as decliners outpaced gainers 764 to 421. Market participants had taken the opportunity to engage in value-buying owing to comparatively more attractive valuations amidst recent declines. Telecommunications & Media (+1.24%), Plantation (+1.06%), and Finance (+0.86%) led the gainers while Technology (-1.86%) and Construction (-0.98%) led the decliners.  

 

Global Markets: Wall Street declined on Monday, with the Dow falling or 0.29%, to 52,421.20, while the S&P 500 slid 0.48% to 7,619.98 and the Nasdaq dropped 0.56% to 26,186.41, as rising oil prices, higher Treasury yields and weakness in AI-related stocks weighed on sentiment. The US 10-year Treasury yield briefly breached 5% for the first time since 2023 as investors increasingly priced in tighter monetary policy, with markets assigning around a 90% probability of a 25bps Fed rate hike this week. Brent crude prices rose amid continued concerns over potential disruptions to Middle Eastern oil supplies. European markets similarly weakened, with the STOXX Europe 600 declining 0.49% to around 635.99 points as losses in technology stocks and rising bond yields outweighed support from selected defensive sectors. Meanwhile, Asian markets were mixed on Monday with South Korea's KOSPI falling 3.26% and Japan's Nikkei 225 declining 0.81%, while Hong Kong's Hang Seng gained around 0.45%. The sell-off in Asian technology stocks followed calls from Anthropic CEO Dario Amodei for a slower pace of AI development, while elevated oil prices added to concerns over inflation and monetary tightening.  

 

Market Outlook. We expect the FBM KLCI to trade cautiously with a slight negative bias in the near term, as bargain-hunting following recent declines is likely to be tempered by persistent external headwinds in addition to cautious sentiment ahead of the Malaysia Day Holiday. While Tuesday’s rebound suggests some underlying buying interest at current valuations, weak market breadth indicates that the recovery remains relatively narrow. Elevated crude oil prices, the US 10-year Treasury yield breaching 5% and growing expectations of tighter US monetary policy are likely to continue weighing on risk appetite. Overall, we expect the KLCI to remain range-bound, volatile, and with a slight negative bias in the near term, with upside likely capped due to the global interest-rate outlook and Middle Eastern supply risks.

 

Sector focus. Recent developments in AI-related sentiment may induce pressure on the local Technology sector, while higher energy prices could also weigh on energy-intensive industries such as Transportation & Logistics and Construction. Conversely, Plantations are expected to continue to see interest given indirect CPO price support.

 

Technical Commentary: The FBM KLCI gained on Monday to close at 1,698.01, rebounding from a recent low of 1,682.49. The index has continued to remain below its EMA9, EMA20 and EMA120, with the recent rebound indicating a small relief in downward momentum. A retest of the 1,700–1,718 resistance zone is expected. Failure to secure a decisive close above this range may see the index drift lower towards the immediate support level of 1,680. For the rebound to look more convincing, the index needs to move back above all of the EMAs. Overall, the index is still moving within the downward trend channel that has limited gains since February.

 

Company News

Kelington Group Bhd has secured a contract worth a provisional RM1.83 billion that marks the largest ever job for the engineering services firm. (The Edge)

 

NuEnergy Holdings Bhd said it is investing in solar photovoltaic (PV) facilities worth RM48.8 million across 49 rooftop sites at the premises of a government agency. (The Edge)

 

GFM Services Bhd said on Monday it has received an additional release order worth RM37.4 million for major turnaround works at the Pengerang Integrated Complex in Johor. (The Edge)

 

Exsim Hospitality Bhd has secured RM42.48 million worth of subcontract works to supply, install, test and commission building services and carry out general building works. (The Edge)

 

Kerjaya Prospek (M) Sdn Bhd, a wholly owned subsidiary of Kerjaya Prospek Group Bhd, has been awarded a RM37.82 million contract from Persada Mentari Sdn Bhd related to an affordable housing project in Penang. (The Edge)

 

PETRONAS Chemicals Group Bhd rose to a three-month high amid a rally in petrochemical refiners as oil prices surged amid renewed conflict in the Middle East. (The Edge)

 

Tan Chong Motor Holdings Bhd has signed a three-year agreement with Perodua to support its battery electric vehicle project in Serendah. (The Edge)

 

United Asiapac Energy Bhd ended its first trading day on the ACE Market 11.4% lower than its opening price on Monday. (The Edge)

Sentiment: Neutral
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