Malaysian Market Review. The FBM KLCI fell 0.98% to 1,607.76 on Friday, extending its losses despite better-than-expected 3Q26 GDP growth of 5.3%, as cautious sentiment weighed on the local bourse. Market breadth turned positive, with 597 gainers outnumbering 470 decliners, while 517 counters were unchanged. Sector-wise, Technology (+1.59%), Telecommunications & Media (+1.54%) and REIT (+1.36%) led the gains, while Plantation (-2.39%), Industrial Products & Services (-2.33%) and Construction (-0.64%) were the top laggards.
Global Markets. Wall Street ended lower on Friday, as renewed selling in technology and AI-related stocks, alongside rising oil prices, weighed on sentiment. The S&P 500 fell 1.09% to 7,659.44, while the Nasdaq Composite dropped 2.15% to 26,140.03 and the Dow Jones declined 0.34% to 52,002.41. Semiconductor stocks remained under pressure amid concerns over intensifying Chinese competition and rising AI infrastructure financing costs. Meanwhile, Brent crude rose to US$109.86/bbl amid escalating geopolitical tensions involving the US, Iran and Russia-Ukraine, adding to inflationary concerns. In Europe, the STOXX Europe 600 rose 0.72% in early trading as technology stocks rebounded. Asian markets ended higher, with the Nikkei (+1.39%), Hang Seng (+0.52%), KOSPI (+2.05%), supported by a rebound in technology stocks following the previous session’s sell-off (CNBC).
Market Outlook. We expect the FBM KLCI to remain cautious in the near term, as persistent foreign selling and heightened global uncertainties continue to weigh on investor sentiment. The recent selloff in US technology and AI-related stocks, coupled with elevated oil prices and inflationary pressures, could further dampen risk appetite ahead of the Federal Reserve’s policy decision on 29 October (Malaysia time). Domestically, investors will continue to assess Malaysia’s economic outlook following 3Q26 GDP growth of 5.3%, while monitoring the potential impact of rising operating costs on corporate earnings, particularly among labour-intensive businesses. We believe a sustained market recovery will depend on improved foreign fund flows and greater stability in global markets.
Sector focus. Construction and utilities could remain in focus, supported by continued data centre investments and rising electricity demand. Meanwhile, energy stocks may attract attention as Brent crude remains above US$100/bbl amid escalating geopolitical tensions.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI remains in a downtrend, trading below its EMA9, EMA20, EMA120 and SMA200, signalling persistent selling pressure. Immediate support is located at 1,600, followed by 1,580, while resistance lies at 1,630–1,640. The near-term outlook remains weak unless the index reclaims the 1,650 level, with a decisive break below 1,600 potentially triggering further downside.
Company News
Zetrix AI Bhd faces potential sukuk payment obligations of RM2.16bn if it fails to resolve a covenant breach by Oct 22, following managing director Wong Thean Soon’s loss of largest-shareholder status after forced share sales. (The Edge)
Genting Bhd executive chairman Tan Sri Lim Kok Thay increased his deemed stake to 45.24%, or 1.74bn shares, after acquiring an additional 6.42m shares amid the stock’s sell-off following its proposed RM1.25bn rights issue. (The Edge)
Genting Plantations Bhd’s property division partnered Huawei Malaysia to master-plan Johor Tech Smart City, including a 430-acre smart campus featuring AI-enabled planning capabilities. (The Edge)
IOI Properties Group Bhd said its board has yet to deliberate on the potential acquisition of Singapore’s Chijmes retail venue and Capitol Kempinski hotel, following reports that the group was in exclusive talks for the assets. (The Edge)
Public Bank Bhd’s Hong Kong-listed subsidiary expects a HK$1.964bn goodwill impairment, potentially reducing the parent’s net assets and EPS by four sen, and plans to privatise the subsidiary for HK$734.75m. (The Edge)
RHB Bank Bhd sought an extension from Bank Negara Malaysia to conclude negotiations with Tokio Marine Asia on a proposed merger of their Malaysian insurance businesses. (The Edge)
Cape EMS Bhd partnered FIC Global’s Malaysian unit to support its optical transceiver manufacturing expansion in Johor, while proposing to issue 50m redeemable convertible preference shares at RM1 each to raise RM50m. (The Edge)
Turiya Bhd saw Datuk Vijayasundaram Jeyabalan become its second-largest shareholder with a 9.09% stake after subscribing for 22.872m shares through a private placement at 40 sen each, raising RM9.15m for the company. (The Edge)
EGH International Bhd fell 15.6% from its 16 sen IPO price to close at 13.5 sen on its ACE Market debut, after touching an intraday low of 12 sen amid relatively weak demand. (The Edge)
Westport Holdings Bhd is expected to beat 3QFY26 earnings consensus on stronger throughput and value-added services, with tariff hikes expected to support growth into 2027. (The Edge)
Cosmos Technology International Bhd secured a RM3.93m contract to supply data loggers and advanced pressure management equipment to Kedah’s water operator, SADA, over four months. (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 | 4.065852 | 4.097386 |
| EUR | 4.589381 | 4.597416 |
| CNY | 0.610175 | 0.610647 |
| HKD | 0.518032 | 0.522054 |
| SGD | 3.177971 | 3.202709 |