Malaysian Market Review. The FBM KLCI declined 0.42% to 1,676.43 on Wednesday, turning negative after two consecutive sessions of gains, as profit-taking in selected heavyweights and weaker sentiment towards petrochemical counters weighed on the market amid continued weakness in oil prices. Market breadth turned negative, with 549 decliners outnumbering 519 gainers, while 577 counters were unchanged. Sector-wise, Energy (+0.69%), Telecommunications & Media (+0.63%) and REIT (+0.13%) led the gains, while Transportation & Logistics (-0.83%), Financial Services (-0.80%) and Plantation (-0.49%) were the top laggards.
Global Markets: U.S. equities fell overnight, with the S&P 500, Nasdaq and Dow Jones declining (- 0.75%), (-1.13%) and (-0.68%), respectively, as a sharp rise in Treasury yields renewed concerns over further Fed rate hikes. The 10-year Treasury yield climbed to 5.14%, its highest level since July 2007. Meanwhile, Brent crude rebounded 4.83% to US$103.31/bbl after five consecutive sessions of losses, as investors assessed developments in the US-Iran conflict. In Europe, the STOXX Europe 600 fell (-0.44%), while Asian markets were mixed, with the Kospi gaining (+0.90%) but the Hang Seng and Shanghai Composite declining (-1.01%) and (-0.39%), respectively. Japan remained closed for a holiday (CNBC).
Market Outlook. We expect the FBM KLCI to remain cautious and range-bound in the near term following Wednesday’s pullback, as weaker Wall Street performance and elevated US Treasury yields could weigh on regional risk sentiment. The rise in Treasury yields, together with growing expectations of further Fed rate hikes, may continue to pressure equity valuations and limit nearterm upside. Meanwhile, the rebound in oil prices could keep inflation and interest-rate concerns in focus, although any further progress in US-Iran talks could help ease geopolitical risks. Investors will also closely monitor the upcoming Trump-Xi meeting for developments on trade, AI and critical minerals. Domestically, Budget 2027 will remain in focus, particularly on cost-of-living measures and targeted subsidies. Against this backdrop, selective bargain hunting may continue, although a sustained market recovery will likely require clearer external catalysts and improved global risk sentiment.
Sector focus. Utilities could remain in focus amid the more cautious market environment, supported by resilient electricity demand, ongoing grid investment and relatively defensive earnings visibility. Banking stocks may also attract interest, underpinned by healthy loan growth and resilient asset quality, although margin pressure could persist amid the evolving interest-rate outlook.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI fell back below the 1,680 level after briefly reclaiming it in the previous session. The index also remains below its EMA9, EMA20, EMA120 and SMA200, suggesting that near-term momentum remains weak. We expect the index to remain under pressure, with 1,680-1,685 acting as the immediate resistance zone, followed by 1,700-1,705. On the downside, a sustained break below 1,660 could expose the index to the lower boundary of the descending trend channel around 1,640.
Company News
Tenaga Nasional Bhd said the additional household electricity subsidy is a one-off measure and is considering adjustments to its charges to better protect consumers, while the estimated RM150m subsidy cost could be lower than initially expected. (The Edge)
CTOS Digital Bhd detected unauthorised access to an environment supporting its consumer business, with certain files containing a limited subset of processed consumer data accessed, although the specific information affected was not disclosed. (The Edge)
Carimin Petroleum Bhd’s 90%-owned subsidiary proposed to acquire leasehold land and buildings in Sarawak for RM21.12m, with plans to reactivate the site’s galvanising and metal fabrication business. (The Edge)
YTL Power International Bhd’s YTL AI Labs, in collaboration with Nvidia, developed a dataset of 1.35 million synthetic Malaysian personas to support the development of Malaysia-context AI models. (The Edge)
Aneka Jaringan Holdings Bhd secured a RM26.2m contract for foundation works for a 53-storey serviced apartment project at Jalan Yap Kwan Seng, Kuala Lumpur. (The Edge)
Destini Bhd signed a two-year agreement with Siemens Mobility to establish a reliability control centre aimed at developing data-driven railway maintenance, repair and overhaul services. (The Edge)
Rimbunan Sawit Bhd estimated a RM10m revenue shortfall following a three-month blockade at its Ulu Teru Estate in Miri, with operations fully resuming on Sept 21. (The Edge)
PRG Holdings Bhd’s construction arm is seeking more than RM64m in outstanding payments from Premier De Muara, which the High Court has now ordered to be wound up. (The Edge)
LB Aluminium Bhd reported a 60% YoY increase in 1QFY27 net profit to RM18.6m, while revenue grew 17.9% to RM318.8m, supported by stronger aluminium and property contributions. (The Edge)
Gold Li Holdings Bhd reported a net loss of RM3.89m on revenue of RM7m for 2QFY27, marking its second interim financial report since its ACE Market debut in May. (The Edge)
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.
| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.064858 | 4.096383 |
| EUR | 4.653143 | 4.656742 |
| CNY | 0.607943 | 0.608438 |
| HKD | 0.518536 | 0.522049 |
| SGD | 3.182129 | 3.203806 |