Malaysian Market Review. The FBM KLCI rose 4.37 points, or 0.27%, to 1,627.72 on Wednesday, from Tuesday’s close of 1,623.35. Market breadth was slightly positive with gainers leading losers, 541 vs 532, as the market continues to benefit from bargain-hunting in larger-cap names and resilient economic fundamentals. Sector-wise, Healthcare (+2.77%), Transportation & Logistics (+1.05%), and Plantation (+0.95%) led gains while Construction (-1.40%), Energy (-0.84%), and Utilities (-0.59%) led decliners.
Global Markets. Wall Street fell on Wednesday, with the Dow declining 0.09%, to 51,621.48, while the S&P 500 dropped 1.11% to 7,718.94 and the Nasdaq slid 1.88% to 26,692.87. September US inflation came in hotter than expected and revived concerns over further Federal Reserve tightening. Headline CPI rose 0.6% MoM and 3.7% YoY, while core CPI increased 0.3% MoM and 2.6% YoY. Market-implied odds of an October Fed hike consequently rose to around 37% from 22% a day earlier. In European markets, the STOXX Europe 600 gained 0.43% to 637.75, supported by Healthcare stocks and stronger-than-expected results from ASML, whose outlook helped reaffirm longer-term AI-related semiconductor demand. Asian markets were mixed to weaker as an early rebound in semiconductor stocks faded, with the Nikkei 225 edging around 0.05% higher, while South Korea's KOSPI fell around 0.44% and Hong Kong's Hang Seng slipped 0.13%. Brent crude settled higher at c.US$106.11/bbl as renewed attacks on vessels in the Strait of Hormuz and threats of further disruptions kept Middle Eastern supply risks elevated.
Market Outlook. The market sentiment may remain fragile as hotter-than-expected US inflation and renewed expectations of further Federal Reserve tightening could dampen regional risk appetite. While Wednesday’s improvement in market breadth and continued bargain-hunting in large-cap stocks suggest that underlying domestic sentiment has stabilised, upside could be constrained by higher-for-longer rate expectations, persistent foreign selling and continued Middle Eastern geopolitical risks. Overall, we expect the KLCI to remain range-bound, with investors likely to favour selective domestic and defensive exposures.
Sector focus. Plantation could maintain a positive bias as elevated energy prices improve the relative economics of biodiesel while expectations for tighter palm oil fundamentals into 2027 remain supportive of CPO prices. Upstream Energy counters may see selective buying as Brent remains above US$100/bbl, although the sector could remain volatile alongside developments in the Middle East. Transportation & Logistics could trade mixed, with stronger domestic activity providing support while elevated oil prices raise fuel-cost concerns.
Technical Commentary: The FBM KLCI continues to edge higher, with the 1,600-level serving as immediate support. However, the index remains below most of the key moving averages, suggesting that the overall trend is still weak. A decisive break below 1,600 could see the index retreat towards 1,580, while any rebound is likely to encounter selling pressure. To improve the technical outlook, the index needs to reclaim the 1,640–1,650 range, with a break above 1,650 signalling a stronger bullish reversal. Until then, the bias remains bearish.
Company News
EcoSys (Malaysia) Bhd's shares almost tripled in value on its first day of listing on the ACE Market amid strong demand for a piece of the semiconductor services firm. (The Edge)
Gamuda Bhd said its joint venture has secured a contract worth RM3.7 billion to build the Keelung mass rapid transit system (MRT) and trackwork project in Taiwan. (The Edge)
Epicon Bhd said its 70%-owned subsidiary has accepted a RM47.38 million subcontract from IJM Construction Sdn Bhd for the supply of concrete support beams for the New Pantai Expressway (NPE) extension. (The Edge)
AWC Bhd said on Wednesday it has secured a RM40 million subcontract for plumbing and sanitary works at a hyperscale data centre in Bandar Spring Hill, Port Dickson, Negeri Sembilan. (The Edge)
JAG Bhd said it is acquiring a freehold industrial land in Shah Alam for RM36.89 million cash to expand its total waste management business. (The Edge)
Genting Bhd has earmarked RM280 million from its proposed RM1.25 billion rights issue to pay interest and other financing costs. (The Edge)
Infomina Bhd started strong in its first quarter, posting a 26.76% increase in net profit as higher contributions from its technology infrastructure operations segment boosted performance. (The Edge)
Bus Cap Bhd’s share price jumped 22.61% on Wednesday, triggering an unusual market activity (UMA) query from Bursa Malaysia Securities. (The Edge)
IHH Healthcare Bhd is considering joining the race to buy Malaysian hospital assets being sold by TPG Inc, people with knowledge of the matter said. (The Edge)
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.065852 | 4.097386 |
| EUR | 4.566831 | 4.570330 |
| CNY | 0.609540 | 0.610006 |
| HKD | 0.518562 | 0.521946 |
| SGD | 3.173015 | 3.194586 |