Opening Daily Highlight
Local
External Headwinds, Selective Opportunities
Mon, 21-Sep-2026 07:19 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI fell (-0.55%) to 1,665.56 on Friday, as persistent foreign selling amid a hawkish Federal Reserve stance and elevated US Treasury yields weighed on selected index heavyweights. Market breadth turned positive, with 625 advancers against 564 decliners, while 505 counters were unchanged. Sector-wise, Technology (+2.50%), Construction (+2.20%) and Transportation & Logistics (+0.71%) led the gains, while Property (-1.62%), REIT (- 0.65%) and Financial Services (-0.63%) were the top laggards.

Global Markets: U.S. equities ended mixed overnight, with the Dow Jones Industrial Average falling (-0.18%), while the S&P 500 (+0.17%) and Nasdaq Composite (+0.39%) edged higher, as rising Treasury yields continued to weigh on equities following the Federal Reserve's 25bps rate hike earlier this week. The 10-year US Treasury yield rose back above 5% to 5.006%, while elevated oil prices also remained a concern, with Brent crude declining 0.69% to US$103.37/bbl. Technology stocks remained relatively resilient, with investors continuing to focus on the AI growth outlook despite expectations for a higher-for-longer interest rate environment. In Europe, the STOXX Europe 600 fell -1.11%, with broad-based selling across most sectors. Across Asia, markets ended mostly higher on Friday, with South Korea's Kospi surging (+2.66%), Japan's Nikkei 225 gaining (+1.38%), Hong Kong's Hang Seng Index rising (+0.60%) and China's Shanghai Composite advanced (+0.94%) (CNBC).

Market Outlook. We expect the FBM KLCI to remain cautious and trade in consolidation mode in the near term, as persistent foreign selling, a stronger US dollar and expectations of further US monetary tightening could continue to cap market sentiment. Meanwhile, elevated oil prices and developments in the Middle East could keep inflation expectations and global bond yields elevated, while movements in US Treasury yields remain key to emerging-market fund flows. On the domestic front, the recent correction has brought valuations to more attractive levels, which could encourage bargain hunting and selective buying in blue-chip counters. We also expect investors to favour sectors with resilient earnings and stronger domestic or commodity-linked exposure amid the uncertain external environment.

Sector focus. Technology stocks should remain in focus, supported by resilient AI and semiconductor demand, while easing oil prices and the recent rebound in global technology stocks could continue to provide near-term sentiment support. Meanwhile, Construction counters may remain on investors' radar, underpinned by ongoing infrastructure, utilities and data-centre projects. Plantation stocks could also attract interest amid elevated CPO prices.

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI extended its decline to close at 1,665.56, remaining firmly below its EMA9, EMA20, EMA120 and SMA200, which continues to point to weak near-term momentum. The index has also failed to reclaim the 1,680 level and is now approaching the key support level of 1,655. A decisive break below 1,655 could accelerate the downward momentum and expose the lower boundary of the descending trend channel. Overall, the index remains within the broader downward trend channel that has capped the upside since February.

Company News

AirAsia Group Bhd said its operations remain sustainable with over RM1 billion in cash, while group adviser Tan Sri Tony Fernandes dismissed concerns over its financial position and said no government bailout had been requested. (The Edge)

Capital A Bhd has proposed a debt restructuring scheme involving Move Digital that could see it divest all or most of its stake in BigPay and its 13.6% stake in Tune Protect to address historical liabilities. (The Edge)

KYM Holdings Bhd plans to acquire a 70% stake in Regen Healthcare for up to RM33.5 million as part of its diversification into the healthcare sector. (The Edge)

TMK Chemical Bhd has agreed to acquire Chemical Company of Malaysia from Batu Kawan for RM939.9 million, comprising RM438.5 million cash and new TMK shares that will give Batu Kawan a 20.8% stake. (The Edge)

Tenaga Nasional Bhd will absorb the estimated RM150 million impact from the expanded electricity tariff subsidy exemption for eligible households through year-end. (The Edge)

Vestland Bhd has secured a RM107.61 million contract for slope mitigation works in Terengganu, lifting its outstanding order book to RM2 billion. (The Edge)

Eco World Development Group Bhd has won a tender to develop a prime residential site in Singapore for S$208.1 million, or about RM667.6 million. (The Edge)

Zetrix AI Bhd has postponed its cash dividend payout after a court injunction prevented the company from distributing cash dividends to certain accounts linked to a substantial shareholder. (The Edge)

Jati Tinggi Group Bhd has secured a RM72.84 million contract to design and build a 275kV highvoltage cable connection for a data centre in Selangor, marking its third contract win in a month. (The Edge)

Sentiment: Neutral
Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.065872 4.098409
EUR 4.682842 4.692143
CNY 0.608932 0.610147
HKD 0.518240 0.522390
SGD 3.182647 3.208177