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Rate Jitters and Iran Deadlock Keep Bursa Under Pressure
Tue, 29-Sep-2026 07:01 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI slipped 0.10% to 1,670.02, its fourth consecutive decline, as early support from the US-China tariff reduction agreement faded amid President Trump's rejection of Iran's Strait of Hormuz proposal and persistently elevated US bond yields. Market breadth was decisively negative, with decliners outpacing advancers 748 to 388. The Health Care (-2.20%), Technology (-1.86%) and Utilities (-1.58%) indices were the top laggards, while the Transportation (+0.51%), Financial Services (+0.24%) and Construction (+0.21%) indices led gains.

 

Global Markets. Wall Street retreated on Monday, with the Dow down 0.67% to 51,481.51, the S&P 500 falling 0.77% to 7,683.69 and the Nasdaq sliding 0.92% to 26,820.38. The 10-year Treasury yield climbed to around 5.20%, a 19-year high, as President Trump's rejection of Iran's Strait of Hormuz proposal revived inflation and Fed tightening concerns. European markets closed broadly mixed, with the DAX declining 0.13% and the FTSE 100 easing 0.10%, as a surge in UK homebuilders was offset by weakness in miners, while higher oil prices capped broader gains. The CAC 40 edged up 0.01% to close broadly flat. Asian markets were mostly lower, with the Nikkei 225 down 0.73% to 65,877.62, ending a five-session winning streak, the Shanghai Composite falling 1.67% to 3,823.62 and the Kospi sliding 2.70% to 6,889.74, while the Hang Seng edged up 0.54% to 24,642.51. (CNBC)

 

Market Outlook. Risk appetite has weakened, with the US 10-year Treasury yield at a 19-year high reviving Fed tightening concerns, although crude pared an early spike of more than 4% to settle only modestly higher on expectations of mediated US-Iran talks. Investors will focus on Wednesday's US PCE inflation data, Friday's September non-farm payrolls and Micron's results this week for a read on AI-driven chip demand. Following Wall Street's decline, we expect the FBM KLCI to stay under pressure within the 1,660-1,680 range until external yield and oil pressures ease.

 

Sector focus. Technology remains in focus after the Bursa Technology Index fell 1.86% on Monday, while the Nasdaq Composite declined 0.92% overnight, adding to near-term pressure ahead of Micron's earnings on Wednesday. The results will offer a key read-through on memory pricing, HBM demand and AI-related semiconductor spending. Energy stocks, meanwhile, are likely to track crude prices, which pared an intraday gain of more than US$4/bbl to close modestly higher as expectations of mediated US-Iran talks capped the rally.

 

Technical Commentary: The FBM KLCI closed marginally lower at 1,670.02 (-0.10%) 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, the index held within a narrow range above the 1,660 support, and we continue to 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

Gamuda Bhd has secured a A$790 million (RM2.28 billion) engineering, procurement and construction (EPC) contract in Australia to develop the first stage of the Mortlake Energy Hub. (The Edge)

 

Zetrix AI Bhd, whose external auditors TGS TW PLT resigned on Monday, announced that it has completed the payout of its delayed cash dividend to all eligible shareholders. (The Edge)

 

Property developer Sunsuria Bhd is selling a piece of freehold commercial land in Sepang, Selangor, for RM316.84 million cash to Amazon Data Services Malaysia Sdn Bhd. (The Edge)

 

Shareholders of Willowglen MSC Bhd have been advised to approve the planned disposal of its core businesses. (The Edge)

 

TSH Resources Bhd clarified that its RM42 million fine in Indonesia involves 1,228.89 hectares of plantations outside the licensed area of its Indonesian subsidiary PT Sarana Prima Multi Niaga (PT SPMN). (The Edge)

 

Hap Seng Consolidated Bhd said it plans to sell its Singapore-listed building materials unit for about S$140 million (RM447 million) following a takeover offer. (The Edge)

 

GUH Holdings Bhd has received the fourth and final compensation payment for the transfer of its industrial land in Suzhou, China, to the Chinese government for 195 million yuan (RM114.9 million). (The Edge)

 

Willowglen MSC Bhd has secured a RM108 million contract through its Singapore subsidiary Willowglen Services Pte Ltd — an operating unit it is currently in the process of divesting. (The Edge)

 

KKB Engineering Bhd has secured RM462 million worth of contracts from Sarawak Shell Bhd and two other companies. (The Edge)

 

Kinergy Advancement Bhd founder Datuk Dr Lai Keng Onn has become the single largest shareholder of marine vessels operator Avangaad Bhd, after acquiring a 278.38 million-share block from Sindora Bhd and Kulim (M) Bhd. (The Edge)

 

Poh Kong Holdings Bhd’s net profit for the quarter ended July 31, 2026 (4QFY2026) jumped to RM36.20 million from RM22.68 million, as revenue grew 3.5% to RM378.36 million from RM365.5 million. (The Edge)

 

Property developer AYER Holdings Bhd has proposed to acquire for RM138 million cash two parcels of contiguous freehold land along Jalan Kuchai Lama, with a combined area of 9.11 acres, for future development projects. (The Edge)

Sentiment: Neutral
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