Malaysian Market Review. The FBM KLCI eased 4.47 points, or 0.27%, to close at 1,674.74 on Thursday from Tuesday's close of 1,679.21, with market breadth remaining negative as decliners outpaced gainers 673 to 465. The future rate-path of the Federal Reserve has indicated further monetary tightening which has led to concerns over the global interest rate outlook and weighed on local sentiment. Technology (+1.42%), Utilities (+0.73%), and Property (+0.33%) led gains while Telecommunications and Media (-1.13%), Industrial Products (-0.83%), and Healthcare (-0.79%) led the decliners.
Global Markets: Wall Street rebounded on Thursday, with the Dow rising 0.61% to 51,778.04, while the S&P 500 gained 1.14% to 7,637.76 and the Nasdaq surged 1.69% to 26,418.30, as investors look past the Federal Reserve’s hawkish rate hike. Initial jobless claims unexpectedly fell to 196,000 from 206,000, below expectations of around 207,000, reinforcing signs of resilience in the US labour market. Brent crude fell as reports of additional Saudi crude supply through Oman eased immediate concerns over Middle Eastern supply disruptions. The STOXX 600 gained 0.86% to 642.6. The Bank of England kept its policy rate unchanged at 3.75% in a 6-3 vote, although Governor Andrew Bailey warned that prolonged Middle East tensions and second-round inflation effects could necessitate further tightening. Asian markets were mixed following the Fed’s rate hike, with Japan’s Nikkei 225 gaining 0.33% while South Korea’s KOSPI edged 0.04% lower and Hong Kong’s Hang Seng declined 0.44%.
Market Outlook. We expect the FBM KLCI to trade cautiously with a slight positive bias in the near term, taking cues from the overnight rebound on Wall Street and easing crude oil prices. Nonetheless, upside may remain constrained as investors digest the Federal Reserve’s signal for further monetary tightening. Domestically, persistently weak market breadth suggests underlying risk appetite remains soft despite relatively modest declines in the benchmark index, which could limit the sustainability of any broad-based rebound. Overall, we expect selective bargain-hunting to emerge following recent weakness, but the KLCI is likely to remain range-bound until greater clarity emerges on the global rate trajectory and Middle Eastern geopolitical risks.
Sector focus. The easing in crude oil prices could provide some relief to energy-intensive sectors such as Transportation & Logistics and Construction, but may temper near-term momentum in Energy. Conversely, Plantations are expected to continue to see interest given indirect CPO price support.
Technical Commentary: The FBM KLCI eased yesterday to close at 1,674.74, continuing its downtrend. The index has continued to remain below its EMA9, EMA20 and EMA120, with the recent price action indicating a resumption of downward momentum. The current close below the support level of 1,680 has led to a retest of the 1,655 - 1,675 support zone. The failure to hold this zone at 1,655 could lead to further downward momentum. Overall, the index is still moving within the downward trend channel that has limited gains since February.
Company News
Construction group Binastra Corp Bhd saw its 2QFY2027 net profit surge nearly 80% to RM50.6 million from RM28.4 million a year earlier, as revenue jumped 66% to RM658.4 million, driven by stronger construction activity, contributions from newly acquired thermal energy firm LF Lansen Sdn Bhd and its expansion into solar installation. (The Edge)
Reservoir Link Energy Bhd has signed a 30-year power purchase agreement with Syarikat SESCO Bhd for a 200MWac solar photovoltaic project in Tinjar, Sarawak, with an estimated development cost of RM570 million. (The Edge)
Batu Kawan Bhd has raised its stake in MKH Oil Palm (East Kalimantan) Bhd to 79.58% after its mandatory general offer (MGO) at 66.26 sen per share concluded on Thursday. (The Edge)
Zetrix AI Bhd founder Wong Thean Soon has ceased to be a substantial shareholder in Cuscapi Bhd after disposing of about 103.6 million shares, or nearly an 11% stake, for up to RM5.18 million, based on Cuscapi’s Sept 11 closing price. (The Edge)
Bintulu Port Holdings Bhd has secured a 30-year concession to continue operating Bintulu Port following its handover to the Sarawak state administration. (The Edge)
Glomac Bhd returned to the black in 1QFY2027, posting a net profit of RM7.6 million compared with a net loss of RM1.42 million a year earlier. (The Edge)
Mechanical and civil engineering firm Enproserve Corp Bhd has secured a RM12.31 million contract from Perbadanan Putrajaya to manage and maintain government quarters in Precinct 8, Putrajaya. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.084107 | 4.115761 |
| EUR | 4.701190 | 4.704850 |
| CNY | 0.610810 | 0.611274 |
| HKD | 0.520755 | 0.524286 |
| SGD | 3.200927 | 3.222773 |