Malaysian Market Review. The FBM KLCI eased 0.04% to 1,671.62, its third straight session of losses, as rising US Treasury yields and escalating West Asia tensions kept investors cautious. Market breadth was negative, with decliners edging out advancers 590 to 575. On the sectoral front, the Construction (+1.68%), Utilities (+1.65%) and Technology (+1.55%) indices led gains, while the Health Care (-0.74%), Plantation (-0.60%) and REIT (-0.45%) indices were the top laggards.
Global Markets. Wall Street closed higher on Friday, with the Dow up 0.93% to 51,828.62, the S&P 500 gaining 0.51% to 7,743.41 and the Nasdaq rising 0.48% to 27,068.72. A more than 2% drop in WTI crude on Friday, driven by renewed hopes for US-Iran negotiations, eased inflationary concerns, while Microsoft’s 3.70% gain on new AI features provided a boost to technology stocks. European markets edged higher, with the STOXX Europe 600 up 0.35% to 638.65 and the DAX gaining 0.56% as moderating energy prices and a rebound in banks supported sentiment. Asian markets were mixed in holiday-thinned trade, with the Nikkei 225 up 1.30% to 66,364.20 for a fifth straight gain on lower oil and firmer tech. The Hang Seng fell 1.01% to 24,510.09 as a tech selloff deepened, with mainland China closed for the Mid-Autumn Festival. (CNBC)
Market Outlook. Sentiment faces a fresh test this week after President Trump on Saturday rejected Iran's seven-day proposal to reopen the Strait of Hormuz, threatening to unwind Friday's oil relief, though he expects talks to resume in the coming days. With the US 10-year Treasury yield hovering around 5.20%, its highest since 2007, investors will look to Wednesday's US PCE inflation data and Friday's September non-farm payrolls for direction on rates. Concrete progress on US-Iran talks would be the main catalyst for a relief rebound. Meanwhile, the Trump-Xi summit has eased near-term US-China trade tensions, while expectations of a Pre-Budget Rally could provide further support to market sentiment.
Sector focus. Technology remains in focus after the Bursa Technology index rose 1.55% on Friday, with AI-led gains in US and Japanese tech names keeping global chip sentiment supportive. Oil & Gas bears watching as the weekend rejection of Iran's Hormuz proposal could reverse Friday's slide in WTI crude. REITs are likely to stay under pressure while the US 10-year yield holds near its highest since 2007.
Technical Commentary: The FBM KLCI closed marginally lower at 1,671.62 (-0.04%) and remained below the 1,680 level. The index is also trading below its EMA9, EMA20, EMA120 and SMA200, indicating that the broader technical picture remains cautious. However, at current levels, we see early signs of stabilisation as the KLCI approaches the lower boundary of its descending trend channel around 1,640. A sustained move above 1,680-1,685 would provide the first indication of improving near-term momentum, with the next resistance at 1,700-1,705. On the downside, 1,660 remains the immediate support, while a break below this level could bring the lower boundary of the descending trend channel into focus.
Company News
Vantris Energy Bhd said its unit has secured two offshore transportation and installation work orders with a combined value of about RM1.8 billion. (The Edge)
Cash-rich Insas Bhd is planning to dispose of its entire remaining 5.65% stake in Inari Amertron Bhd, valued at roughly RM580 million, with the proceeds raised to be used for working capital and repay credit facilities. (The Edge)
Teck Guan Perdana Bhd saw its net profit for the second-quarter ended July 31, 2026 (2QFY2027) more than triple to RM16 million from RM5.26 million a year earlier. (The Edge)
Shareholders of Willowglen MSC Bhd have been advised to approve the planned disposal of its core businesses. (The Edge)
Plantation company TSH Resources Bhd said its 90%-owned indirect Indonesian subsidiary, PT Sarana Prima Multi Niaga, has been fined 184.35 billion rupiah (about RM42 million) by Indonesia’s Forest Area Enforcement Task Force (FAC). (The Edge)
Yinson Holdings Bhd and MISC Bhd said discussions on Yinson's potential privatisation are ongoing, with the indicative offer price maintained at RM2.35 per share. (The Edge)
Heavy machinery specialist Favelle Favco Bhd has secured three contracts worth RM88.8 million to supply cranes. (The Edge)
Energy and engineering solutions provider Kinergy Advancement Bhd, formerly known as Kejuruteraan Asastera Bhd, plans to place out up to 10% of its issued shares to third-party investors to raise up to RM79.75 million to finance its Perlis power plant and repay debts. (The Edge)
Engineering services and renewable energy provider Kawan Renergy Bhd posted a 72.8% drop in its third-quarter net profit, due partly to cost overruns at its power plant project in Sabah. (The Edge)
EWI Capital Bhd, formerly known as Eco-World International Bhd, reported a wider net loss of RM13.23 million in the third quarter, up from RM8.18 million a year ago, weighed down by higher impairment and finance costs. (The Edge)
Construction firm Taghill Holdings Bhd has signed a joint venture agreement to develop a residential project on a Malay reservation land in Kelantan (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.066846 | 4.098389 |
| EUR | 4.642019 | 4.645551 |
| CNY | 0.607873 | 0.608337 |
| HKD | 0.518664 | 0.522176 |
| SGD | 3.182150 | 3.203807 |