Malaysian Market Review. The FBM KLCI edged up (+0.08%) to 1,666.94 on Monday, as bargain hunting in selected blue-chip stocks helped the benchmark end slightly higher after a weak start, while easing concerns over the Middle East conflict and retreating oil prices provided some support to sentiment. Market breadth remained positive, with 654 advancers against 552 decliners, while 517 counters were unchanged. Sector-wise, Energy (+3.02%), Utilities (+1.94%) and Transportation & Logistics (+0.46%) led the gains, while Industrial Products & Services (-0.94%), Plantation (-0.91%) and Property (-0.72%) were the top laggards.
Global Markets: U.S. equities rallied overnight, with the Dow Jones Industrial Average gaining (+0.71%), while the S&P 500 and Nasdaq Composite advanced (+1.49%) and (+2.26%), respectively, as gains in artificial intelligence-related stocks lifted the broader market. Intel surged 12%, while Advanced Micro Devices (AMD) and Qualcomm gained about 10% and more than 9%, respectively, with AMD's market capitalisation surpassing US$1tn. The Nasdaq also closed at a fresh record, while Brent crude fell 3.24% to US$100.02/bbl. In Europe, the STOXX Europe 600 opened (+1.02%), supported by gains in technology and financial stocks alongside easing oil prices. Across Asia, markets ended mostly higher, with South Korea's Kospi gaining (+1.65%), Hong Kong's Hang Seng Index rising (+1.18%) and China's Shanghai Composite advancing (+0.97%), while Japan was closed for a holiday (CNBC).
Market Outlook. We expect the FBM KLCI to remain in consolidation mode in the near-term following Monday's mild rebound, with bargain hunting providing some support after the recent correction. However, upside could remain capped by elevated US Treasury yields, expectations of further US monetary tightening and ongoing geopolitical uncertainties. Meanwhile, the retreat in oil prices could provide some near-term relief to sentiment, while investors will continue to monitor crude oil prices, US Treasury yields and developments surrounding the US-China summit. We expect investors to remain selective, with bargain hunting focused on fundamentally resilient counters.
Sector focus. Technology stocks should remain in focus following the strong rebound in global AI and semiconductor stocks, while Utilities counters could attract interest after outperforming the broader market. Construction and Plantation may remain selective plays, supported by ongoing project activity and elevated CPO prices, respectively.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI rebounded slightly after three consecutive sessions of declines, but remains below its EMA9, EMA20, EMA120 and SMA200, indicating that near-term momentum remains weak. The index has yet to reclaim the 1,680 level, while the lower boundary of the descending trend channel around 1,650 remains the key support. A break below this level could lead to further downside.
Company News
Pekat Group Bhd will lease about 470 acres in Sungai Petani for 24 years to develop renewable energy projects, including solar PV and battery energy storage systems. (The Edge)
Gamuda Bhd secured a 50% share of the A$624m (RM1.8bn) Western Sydney road upgrade contract, worth about RM908m, with completion targeted by 2030. (The Edge)
Southern Score Builders Bhd secured a RM40m subcontract for electrical works at a Nilai data centre, covering supply, installation, commissioning, maintenance and warranty services. (The Edge)
Powerwell Holdings Bhd secured two contracts worth RM190.42m to supply low-voltage switchgear and related equipment for a Johor data centre project. (The Edge)
Straits Energy Resources Bhd proposed a share capital reduction to eliminate RM90m of accumulated losses, including RM39.17m at group level as of June 30, 2026. (The Edge)
CTOS Digital Bhd appointed Putri Norlisa Najib, eldest daughter of former PM Najib Razak, as an independent non-executive director effective Sept 25. (The Edge)
Dialog Group Bhd obtained PETRONAS approval for its US$81m (RM330.29m) RAJA Cluster field development and abandonment plan, with Dialog holding 100% participating interest and operatorship. (The Edge)
Excel Force MSC Bhd proposed a private placement of up to 60.99m shares to raise RM10.98m, mainly for working capital and a software project. (The Edge)
M&A Equity Holdings Bhd redesignated Thong Mei Chuen as non-executive chairperson, effective Monday; she is the daughter of businessman Datuk Seri Thong Kok Khee. (The Edge)
Winstar Capital Bhd proposed a RM300m sukuk murabahah programme to fund investments, land acquisitions, refinancing and working capital, with a 30-year tenure. (The Edge)
Inspace Creation Bhd secured a RM34.75m subcontract for renovation works on commercial properties, with project details undisclosed due to confidentiality. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.059912 | 4.092391 |
| EUR | 4.674546 | 4.683843 |
| CNY | 0.608571 | 0.609185 |
| HKD | 0.517481 | 0.521624 |
| SGD | 3.182535 | 3.208138 |