Malaysian Market Review. The FBM KLCI rose 1.60 points, or 0.10%, to 1,633.35 on Tuesday, from Monday's close of 1,631.75, with market breadth turning positive as gainers led losers 667 to 456. Buying interest was seen in telecommunications and commodity-related counters, with trading activity broadening to selected small-cap names, as sentiment was supported by Wall Street's technology-led rally and easing crude oil prices, although elevated US Treasury yields continued to temper risk appetite ahead of the tabling of Budget 2027 on Friday. Technology (+3.12%) and Healthcare (+3.04%) topped the gainers, while Finance (-0.38%) and Property (-0.29%) led the laggards.
Global Markets. The S&P 500 rose to a fresh all-time intraday high on Tuesday, boosted by gains in key technology names and a decline in Treasury yields, climbing 0.58% to a record close of 7,818.93, while the Dow gained 0.49% to 51,521.28, and the Nasdaq added 0.45% to a record close of 27,599.79. Chipmakers led the advance, with Marvell Technology popping 5.8%, Broadcom advancing 3.7% and Advanced Micro Devices gaining nearly 3%, while oil prices ended little changed, with Brent crude settling 0.76% higher at c.$101.08 a barrel. The 10-year Treasury yield fell 3 basis points to 5.286%, while the 30-year yield was little changed at 5.655%, both easing from levels not seen since 2002 reached on Monday. Meanwhile, Europe's STOXX 600 rose 0.48% to 636.63, supported by easing oil prices and selective buying in defensive counters. Asian markets traded mixed on Tuesday, with South Korea's KOSPI falling 0.89% as investors booked profits in chipmakers following recent gains, while Japan's Nikkei 225 surged 1.05% on continued technology-led buying after Wall Street's overnight rally, and Hong Kong's Hang Seng gained 1.00%. (CNBC)
Market Outlook. Investors are looking through inflation and oil concerns for now, with the market driven by momentum, earnings growth and AI investment, while attention turns to the minutes of the Fed's September meeting due Wednesday, which may shed light on the decision to raise rates. We stay cautious on near-term global risk appetite, as the rally remains narrowly led by technology and bond yields are still close to multi-decade highs, leaving equities vulnerable if the Fed's tone turns more hawkish. We stay cautious on the local bourse this week, as easing crude oil prices and Budget 2027 expectations may offer some support, but a stronger recovery will likely require fresh catalysts such as foreign fund inflows and clearer direction on bond yields and geopolitical developments.
Sector focus. Technology and Healthcare counters may extend their gains over the next few days, supported by continued selective buying in small-cap technology names and the government's focus on semiconductors and pharmaceuticals as strategic areas ahead of Budget 2027. Conversely, Finance and Property may stay under pressure after leading Tuesday's declines, as elevated US Treasury yields and persistent foreign selling continue to weigh on rate-sensitive and heavyweight counters
Technical Commentary: The FBM KLCI edged up marginally to close at 1,633.35 (+0.10%), but the move looks more like a temporary pause than a genuine recovery. The index remains below the 1,650–1,660 resistance zone and all key moving averages, while the descending trendline continues to cap gains, suggesting weakening buying interest. Support at 1,625 looks increasingly fragile, and a break below would leave the index exposed to a slide toward the psychological 1,600 level and potentially deeper toward 1,580. The index needs to clearly break above 1,650–1,660 to show that the current downtrend may be weakening. Until then, the market is more likely to continue moving lower rather than start a strong recovery.
Company News
CIMB Group Holdings Bhd is exploring a sale of its business in the Philippines as part of efforts to streamline and focus on bigger markets for growth, according to people with knowledge of the matter. (The Edge)
Zetrix AI Bhd said the exact amount it owes the Road Transport Department (JPJ) is still being finalised between the two parties, a day after Transport Minister Anthony Loke Siew Fook said the company had accumulated RM314 million in unpaid remittances. (The Edge)
Top Glove Corporation Bhd said labour shortage remains a primary constraint in scaling up production as it seeks to capture rising global demand following its best year since 2021. (The Edge)
Samaiden Group Bhd said its contracts to undertake works for a 99.99-megawatt (MW) Large Scale Solar 5+ (LSS5+) project are worth RM238 million. (The Edge)
Mesiniaga Bhd has won a RM32.3 million contract from the Royal Malaysian Customs Department (RMDC) for the maintenance and licence renewal of its MyGST System. (The Edge)
Scientex Bhd is acquiring 503 acres in Pulai, Johor, for RM580 million to boost the property developer’s land bank. (The Edge)
Dialog Group Bhd said its 50.01%-owned joint venture company has been awarded concession rights and operatorship for the L8/66 exploration block onshore Thailand. (The Edge)
Elridge Energy Holdings Bhd is investing RM45 million to venture into the manufacturing and sale of activated carbon business for use across water treatment, industrial purification and related filtration. (The Edge)
Insights Analytics Bhd, which mainly provides asset management systems to water utilities, has secured a RM14.44 million subcontract to construct a water treatment plant in Sarawak's Miri division. (The Edge)
Building construction contractor SLGC Bhd ended its first trading day on the ACE Market below its initial public offering (IPO) price. (The Edge)
Disclaimer
The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.
Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.
| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.069854 | 4.102421 |
| EUR | 4.591087 | 4.595769 |
| CNY | 0.609308 | 0.609925 |
| HKD | 0.518824 | 0.522467 |
| SGD | 3.184274 | 3.206758 |