Malaysian Market Review. The FBM KLCI fell 0.25% to 1,672.31 on Thursday, weighed down by last-minute selling after a choppy session, with weakness in technology and semiconductor stocks weighing on market sentiment. Market breadth remained negative, with 677 decliners outnumbering 436 gainers, while 542 counters were unchanged. Sector-wise, Energy (+1.17%), Construction (+0.65%) and Healthcare (+0.60%) led the gains, while Telecommunications & Media (-1.97%), Technology (-1.78%) and Consumer Products & Services (-0.35%) were the top laggards.
Global Markets: U.S. equities were broadly flat overnight, with the S&P 500, Nasdaq and Dow Jones ending (-0.02%), (+0.01%) and (-0.31%), respectively, as elevated Treasury yields and oil prices continued to weigh on sentiment. The 10-year Treasury yield climbed to 5.22%, its highest level since June 2007, while the 30-year yield hit 5.50%, a level last seen in 2004. Meanwhile, Brent crude rose more than 3% to above US$106.77/bbl, as investors monitored developments in the US-Iran conflict. In Europe, the STOXX Europe 600 fell (-0.55%), while Asian markets were mixed, with the Nikkei gaining (+0.76%), but the Hang Seng and Shanghai Composite declining (-0.29%) and (- 1.22%), respectively. South Korea was closed for the Chuseok holiday (CNBC).
Market Outlook. We expect the FBM KLCI to remain cautious and range-bound in the near term, as elevated US Treasury yields, higher oil prices, persistent foreign selling and geopolitical uncertainties continue to weigh on investor sentiment. The rise in bond yields, alongside expectations of further Fed rate hikes, could continue to pressure equity valuations, while developments in the US-Iran conflict remain a key source of geopolitical and inflationary risks. Investors will also monitor the follow-through from the Trump-Xi meeting, particularly on trade, AI and critical minerals, following the extension of the US-China trade truce. Domestically, attention will turn to the upcoming Melaka state election following the dissolution of the state assembly on 23 September, while Budget 2027 on 9 October will also remain in focus. Against this backdrop, market volatility could remain elevated, with a sustained recovery likely requiring clearer external catalysts and improved global risk sentiment.
Sector focus. Energy could remain in focus as Brent crude stays above US$100/bbl amid ongoing Middle East tensions, supporting sentiment towards oil and gas-related counters. Utilities could also remain in focus, backed by resilient electricity demand and accelerating grid investment, particularly as data centre demand continues to drive power consumption. Meanwhile, the Construction sector remains supported by an active data centre pipeline and the expected rollout of public infrastructure projects, providing visibility for order-book replenishment into 2H26.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI extended its decline and remained below the 1,680 level. 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, 1,660 remains the key support, while a sustained break below this level could expose the index to the lower boundary of the descending trend channel around 1,640.
Company News
HE Group Bhd secured a RM124m subcontract to supply main electrical works for a data centre in Johor. (The Edge)
Eco World Development Group Bhd reported 3QFY26 net profit up 10.9% YoY to RM112.2m and revenue up 27.5% to RM971.5m, driven by higher locked-in sales, putting the group on track for record FY2026 sales and earnings. (The Edge)
MNRB Holdings Bhd declared a final dividend of 15 sen per share for FY2026, with 5 sen subject to its dividend reinvestment plan. (The Edge)
Zetrix AI Bhd delayed its cash dividend payout again to Sept 28 due to an earlier calculation error, while dividends linked to disputed nominee accounts remain on hold pending the legal case. (The Edge)
UUE Holdings Bhd secured four Singapore contracts worth S$9.3m (RM29.7m) for 400kV power cables and related equipment, bringing FYTD contract wins to RM127.9m and strengthening earnings visibility for the next two to three years. (The Edge)
IOIPG Malaysia REIT plans to distribute at least 90% of distributable income quarterly and is seeking a Main Market listing with RM7.66bn of properties across the Klang Valley and Penang. (The Edge)
IHH Healthcare Bhd’s subsidiary appealed a Tokyo court ruling that dismissed its ¥200bn (RM5.3bn) damages claim against Daiichi Sankyo over the Fortis-related case. (The Edge)
MyNews Holdings Bhd reported 3QFY26 net profit down 40.5% YoY to RM3.83m despite revenue rising 9% to RM251.8m, as higher administrative, selling and distribution expenses offset growth from its expanded store network. (The Edge)
Superlon Holdings Bhd posted a 77.6% YoY surge in 1QFY27 net profit to RM5.48m, its highest quarterly profit in a decade, supported by record revenue, stronger manufacturing contribution and improved margins. (The Edge)
Infomina Bhd secured a RM63m contract to provide technology refresh, installation, integration and maintenance services to a financial institution. (The Edge)
Ajinomoto (Malaysia) Bhd shareholders approved the RM20 per share offer from parent Ajinomoto Co Inc to privatise the company through a selective capital reduction. (The Edge)
Inta Bina Group Bhd secured a RM221.08m contract for main building works for an apartment and office development in Klang from Mitraland Group. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.070353 | 4.100916 |
| EUR | 4.645255 | 4.647687 |
| CNY | 0.608096 | 0.608418 |
| HKD | 0.519182 | 0.522576 |
| SGD | 3.180952 | 3.201883 |