Malaysian Market Review. The FBM KLCI fell 1.26% to 1,630.36, erasing Wednesday's rebound, as rising US Treasury yields and lingering Middle East tensions weighed on sentiment, with selling concentrated in plantation heavyweights. Market breadth was decisively negative, with decliners outpacing advancers 750 to 342. Construction (-1.93%), Utilities (-1.87%) and Plantation (-1.85%) indices led the decline, while Technology (+0.54%) was the only sector index to close higher.
Global Markets. Wall Street ended marginally higher on Thursday, with the S&P 500 up 0.19% to 7,666.45, while the Dow and Nasdaq each edged up 0.04% to 50,926.56 and 26,871.60 respectively, as the 10-year Treasury yield retreated from an intraday high near 5.34%, its highest since 2002, and gains in chip stocks offset a more than 2% rise in oil after China suspended October fuel exports. European markets slumped, with the CAC 40 down 1.62%, the DAX falling 1.03% and the FTSE 100 down 1.68%, as a global bond selloff pushed UK 30-year gilt yields to 6% for the first time since 1998. Asian markets rallied, with the Nikkei 225 surging 3.30% to a six-week high on chip-led buying and the Kospi climbing 1.95% to 6,971.35, while Hong Kong and mainland China markets were closed for holidays. (CNBC)
Market Outlook. Global bond markets remain the key swing factor, with US 10-year yields briefly touching their highest since 2002 and UK 30-year gilt yields at a 28-year high, while firmer oil prices after China's fuel export suspension and stalled US-Iran talks keep inflation concerns alive. Tonight's US September non-farm payrolls will be pivotal for Fed rate expectations. With Thursday's selloff broad-based, we expect the FBM KLCI to remain under pressure into the weekend, although the chip-led rally in North Asia could lend selective support to technology names.
Sector focus. Technology should stay supported after upbeat guidance from a US memory-chip bellwether sparked chip-led rallies in Tokyo and Seoul. Energy may find support after oil climbed more than 2% overnight on China's fuel export suspension.
Technical Commentary: The FBM KLCI closed sharply lower at 1,630.36 (-1.26%), breaking below the neckline of the Triple Top pattern at around 1,650, which we have revised from our previously identified descending trend channel. The index has also triggered a Death Cross, with shorter-term EMAs crossing below longer-term EMAs, suggesting that the broader technical outlook remains sluggish. Nevertheless, with the KLCI now approaching the next support at 1,625, some bargain hunting could emerge following the recent sell-off. A decisive move back above 1,650 would provide the first indication of improving momentum, with the next resistance at 1,660. On the downside, a break below 1,625 could open the way towards the next support at 1,580.
Company News
The three co-founders and executive directors of MN Holdings Bhd made a combined net gain of nearly RM45 million after converting company warrants into shares at 20 sen apiece and offloading a chunk of those shares to institutional investors at RM3.91 per share. (The Edge)
IOI Properties Group Bhd said Bursa Malaysia Securities has approved the listing of its proposed RM7.58 billion IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT) on the Main Market. (The Edge)
A Yinson Holdings Bhd unit and Langkawi Port Sdn Bhd (LPSB) signed a memorandum of understanding on Thursday to set up Malaysia’s first commercial fully electric passenger ferry service between Langkawi and Kuala Perlis (The Edge)
Tien Wah Press Holdings Bhd said its unit plans to buy a factory in Malang, Indonesia, which it currently leases, for 150 billion rupiah (RM34.07 million) from British American Tobacco (BAT) Group’s PT Bentoel Prima. (The Edge)
KKB Engineering Bhd has secured a government contract for water infrastructure upgrade in Sarawak worth RM517 million. (The Edge)
Hengyuan Refining Company Bhd has brought back former chief executive officer Erkki Tapio Ranta to lead the company, with immediate effect. (The Edge)
Hextar Capital Bhd subsidiary Legacy Core Sdn Bhd has secured a RM60 million subcontract from Doland (M) Sdn Bhd to upgrade a road in Sibu, Sarawak. (The Edge)
Globaltec Formation Bhd has announced the redesignation of executive director Chen Heng Mun, 56, as deputy group chief executive officer, with immediate effect (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.070153 | 4.100766 |
| EUR | 4.602602 | 4.605139 |
| CNY | 0.607445 | 0.607815 |
| HKD | 0.518897 | 0.522300 |
| SGD | 3.176492 | 3.197382 |