Malaysian Market Review. The FBM KLCI rebounded 0.44% to 1,651.17, snapping a five-session losing streak, as bargain hunting in utility heavyweights amid softer oil prices lifted the index. Market breadth remained negative, however, with decliners outpacing advancers 703 to 413. The Construction (+2.07%), Utilities (+0.62%) and Property (+0.38%) indices led gains, while the Energy (-2.65%), Telecommunications & Media (-0.72%) and Technology (-0.57%) indices were the top laggards.
Global Markets. Wall Street ended mostly lower on Wednesday, with the Dow down 0.86% to 50,906.05 and the S&P 500 easing 0.25% to 7,651.54, while the Nasdaq rose 0.24% to 26,861.06, as the 10-year Treasury yield climbed to around 5.30%, a fresh multi-decade high, overshadowing a softer-than-expected 0.2% rise in core PCE inflation. European markets fell, with the DAX down 0.79%, the CAC 40 sliding 0.89% and the FTSE 100 easing 0.29%, as higher eurozone inflation and rising bond yields weighed on sentiment. Asian markets were mostly higher, with the Nikkei 225 surging 1.94% to 66,753.72 on a tech-led rebound, the Hang Seng rising 0.37% to 24,613.27 and the Shanghai Composite gaining 0.31% to 3,842.19 ahead of the Golden Week break, while the Kospi slipped 0.48% to 6,838.04. (CNBC)
Market Outlook. Risk sentiment remains capped by the relentless climb in US yields, as stronger-than-expected US private hiring of 90,000 in September offset the relief from softer core PCE inflation. Investors now turn to Friday's September non-farm payrolls for direction on the Fed's next move, while stalled US-Iran negotiations keep oil prices volatile and mainland China markets stay shut for the Golden Week holiday. We expect the FBM KLCI to trade cautiously ahead of the US jobs data, with a more sustained recovery hinging on a pullback in US bond yields and tangible progress in US-Iran talks.
Sector focus. Technology bears watching with record quarterly results from a US memory-chip bellwether and the Nikkei's tech-led 1.94% rebound offering a supportive read-through, although the after-hours share reaction to the results was muted. Meanwhile, Utilities could remain in focus, supported by resilient electricity demand, ongoing grid investment and relatively defensive earnings visibility. Energy remains exposed to oil price swings as US-Iran negotiations stall.
Technical Commentary: The FBM KLCI closed higher at 1,651.17 (+0.44%) but remained below the 1,660 level. The index is also trading below its EMA9, EMA20, EMA120 and SMA200, indicating that the broader technical picture remains cautious. However, the index rebounded after holding above the lower boundary of its descending trend channel around 1,640, and we see early signs of stabilisation at current levels. A sustained move above 1,660 would provide the first indication of improving near-term momentum, with the next resistance at 1,680-1,685. On the downside, 1,640 remains the immediate support, while a break below this level could bring the next support at 1,625 into focus.
Company News
UWC Bhd achieved record performance for its financial year 2026, as its fourth quarter earnings more than doubled to RM37.6 million from RM16.37 million. (The Edge)
Fraser & Neave Holdings Bhd said its chief executive officer Lim Yew Hoe, 60, will retire effective Wednesday, after the Singaporean helmed the group for more than 11 years. (The Edge)
Astro Malaysia Holdings Bhd sank into the red in the May-July quarter — its first quarterly loss since late 2023 — dragged by unrealised foreign exchange losses and lower top line as subscription revenue dropped. (The Edge)
Divfex Bhd has secured two contracts worth RM120.12 million to supply equipment for a 15MW data centre fit-out in Penang. (The Edge)
Zetrix AI Bhd and IPVG Employees Inc have agreed to extend by three months the deadline to complete the Malaysian company's purchase of a 50% stake in Philippines-based MyEG Ventures Inc. (The Edge)
Batu Kawan Bhd’s unconditional mandatory takeover of MKH Bhd has crossed the 95% threshold, paving the way for the property developer’s delisting. (The Edge)
Chin Hin Group Property Bhd is selling its entire interest in four loss-making subsidiaries involved in the commercial vehicle and bodyworks business to HSG Sdn Bhd for a combined RM62 million in cash, to focus on its property development business. (The Edge)
ES Sunlogy Bhd slipped into the red in the last quarter of its financial year, citing one-off impairment losses on trade receivables, property, plant and equipment. (The Edge)
One of the brothers who co-founded Solid Automotive Bhd, Ker Boon Kee, has transferred his shares in the company to his children, making his son and executive director Ker Keddy the company’s second-largest shareholder. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.064888 | 4.097416 |
| EUR | 4.632934 | 4.637615 |
| CNY | 0.607904 | 0.608602 |
| HKD | 0.518218 | 0.521889 |
| SGD | 3.185098 | 3.207452 |