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Weak Jobs Data Lifts Fed Pause Hopes
Mon, 05-Oct-2026 07:51 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI inched up 0.51 points, or 0.03%, to 1,630.87 on Friday, from Thursday's close of 1,630.36, with market breadth turned positive, with gainers leading losers 585 to 541. Valuations have become more attractive following the recent sell-off and could encourage gradual accumulation, but investors remain defensive as bond yields and crude oil prices stay elevated. Technology (+2.32%) and Telecommunications & Media (+1.53%) topped the gainers, while Energy (-0.24%) and Construction (-0.20%) led the laggards.

 

Global Markets. Stocks rose on Friday after a surprisingly weak September jobs report, with the Dow adding 250 points, or 0.49%, to 51,176.46, the S&P 500 gaining 0.73% to 7,722.72, and the Nasdaq climbing 1.19% to 27,190.86, after hitting an all-time high earlier in the session before pulling back as Treasury yields reversed course. Nonfarm payrolls showed the U.S. economy added just 29,000 jobs last month against expectations of 84,000, with unemployment rising to 4.2% from 4.1%. Fed funds futures now suggest a 77% likelihood the central bank will stand pat at this month's meeting. Meanwhile, Europe's STOXX 600 rose 0.75% to 631.35, supported by easing oil prices and selective buying in defensive counters. Asian markets traded mixed on Friday, with South Korea's KOSPI gaining 0.46% on continued strength in chipmakers, while Japan's Nikkei 225 fell 0.94% as investors booked profits following its recent strong rally. Hong Kong's Hang Seng dropped about 2.60% as markets reopened after the holiday. (CNBC) 

 

Market Outlook. The weak jobs data was seen as the kind of reading the market wanted, strengthening expectations for a Fed pause ahead of an earnings season expected to be strong, though Treasury yields rebounded after an initial drop and pared the day's gains, a reminder that the bond market remains a source of volatility following the recent global bond rout. We stay conservative on near-term risk appetite, as easing rate-hike concerns and resilient tech leadership offer support but elevated yields and oil price swings are likely to keep gains uneven. We remain cautious on the local bourse, as elevated bond yields and crude oil prices are likely to keep investors defensive. With key US labour market data pending, external headwinds should keep volatility elevated, and any recovery is likely to stay gradual until greater clarity emerges on the global rate and energy outlook.

 

Sector focus. Technology counters may extend their gains next week, supported by the tech-led rally on Wall Street. Telecommunications & Media could also see follow-through as investors stay selective and favour defensive earners amid elevated bond yields. Conversely, REIT and Property could remain under pressure if Treasury yields stay elevated.

 

Technical Commentary: The FBM KLCI edged up marginally to close at 1,630.87 (+0.03%), but the broader outlook remains weak. Thursday’s sharp sell-off confirmed a break below the Triple Top neckline near 1,650 and triggered a Death Cross. The index remains near the descending trendline that has capped rallies since the beginning of the year, while the lack of a meaningful rebound suggests continued selling pressure. Immediate support lies at 1,625, but a decisive break below this level could expose the index to a deeper decline toward 1,600. On the upside, resistance lies at 1,650–1,660. Until the index breaks above the descending trendline and reclaims the short-term moving averages, any rebound may be temporary rather than a genuine recovery.

 

Company News 

Gas Malaysia Bhd aims to make a final investment decision on plans for its first regasification terminal by the second half of next year. (The Edge)

 

PETRONAS Chemicals Group Bhd announced on Friday that its chief executive officer Mazuin Ismail will retire effective Jan 1, 2027. (The Edge)

 

A unit of troubled builder TXCD Bhd has secured a RM110 million subcontract from Vestland Resources Sdn Bhd to build a 62-storey Sovo commercial development in Section 44, Kuala Lumpur. (The Edge)

 

Berjaya Hills Resort Bhd, part of Berjaya Corp Bhd, said the enforcement on its properties by Pahang authorities was “unconscionable and totally unacceptable”. (The Edge)

 

The Road Transport Department (JPJ) will suspend MyEG Sdn Bhd and Zetrix AI Bhd,  both under MYEG Group, as its collection agents effective 12.01am next Monday. (The Edge)

 

Country Heights Holdings Bhd said its 80.90%-owned subsidiary Golden Horse Palace Bhd (GHPB) has been served with a winding-up petition over two outstanding Industrial Court awards involving RM312,653. (The Edge)

 

The Securities Commission Malaysia (SC) has approved construction firm Lim Seong Hai Capital Bhd’s transfer of its listing to the Main Market from the ACE Market. (The Edge)

 

Mah Sing Group Bhd has signed a collaboration term sheet with Kinergy Advancement Bhd to provide technical advisory and evaluate power infrastructure for its proposed data centre developments. (The Edge)

Sentiment: Neutral
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