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FBM KLCI Faces Pressure as Global Tech Stocks Slide
Fri, 23-Oct-2026 07:15 am
by Research Team • Apex Research

Malaysian Market Review. The FBM KLCI rose 0.37% to 1,608.14 on Thursday, extending its gains for a third consecutive session and defying a broader regional sell-off, supported by buying interest in index heavyweights. However, market breadth turned negative, with 681 decliners outnumbering 420 gainers, while 501 counters were unchanged. Sector-wise, Energy (+1.29%), Transportation & Logistics (+0.83%) and Plantation (+0.49%) were the top gainers, while Technology (-1.85%), Healthcare (-0.64%) and Telecommunications & Media (-0.62%) were the top laggards.

Global Markets. Wall Street closed mixed on Thursday, as the Nasdaq Composite fell 2.60% to 26,008.86 and the S&P 500 declined 1.21% to 7,663.43, while the Dow Jones Industrial Average edged up 0.02% to 52,867.98. Technology stocks led the sell-off amid renewed concerns over the sustainability of AI spending, with AMD falling more than 8%, while Micron and Nvidia declined 6% and 4%, respectively. Meanwhile, escalating geopolitical tensions involving Iran drove Brent crude up 2.64% to US$112.92/bbl. U.S. Treasury yields fell, with the 10-year yield dropping below 5.00% to 4.97% as investors sought safe-haven assets. In Europe, the STOXX Europe 600 fell 1.05% amid broad-based selling. Asian markets also declined, with South Korea’s KOSPI falling 3.52%, Japan’s Nikkei 225 dropping 2.65% and Hong Kong’s Hang Seng Index retreating 3.03%, as AI-related concerns weighed on regional technology stocks (CNBC).

Market Outlook. We expect the FBM KLCI to trade lower today, tracking Wall Street’s sharp overnight pullback as renewed concerns over AI spending weighed on technology stocks and reversed Wednesday’s gains. Despite better-than-expected results, Meta and Tesla failed to reassure investors, as attention remained on rising capital expenditure for AI expansion and Tesla’s planned investments in AI and robotics. The renewed surge in oil prices further dampened sentiment. The Nasdaq Composite’s steepest single-day decline since June could weigh on local technology and semiconductor-related counters, which had recently staged a recovery. Investors will also be watching next week’s FOMC meeting for further clues on the interest rate outlook. Domestically, defensive and domestically driven counters may provide some support amid weaker external sentiment.

Sector focus. Technology stocks may remain under pressure amid concerns over AI spending, while Energy stocks could benefit from elevated oil prices amid Middle East tensions. Construction stocks may stay in focus on continued data centre-related project opportunities and potential contract wins.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI closed at 1,608.14, remaining below its key moving averages, indicating that the broader downtrend remains intact. Immediate resistance is seen at 1,610, followed by 1,630, while support lies at 1,600, with further downside towards 1,580 if selling pressure resumes. The index needs to break above near-term resistance to signal improving momentum, although the broader technical outlook remains cautious.

 

Company News

Zetrix AI Bhd said no payment default has occurred under its RM2bn sukuk programme despite the Oct 22 covenant breach deadline, with sukuk holders scheduled to meet on Oct 23 to discuss a resolution; failure to obtain a waiver could trigger RM2.16bn in principal and future coupon obligations. (The Edge)

RHB Bank Bhd secured an extension from Bank Negara Malaysia until Feb 11, 2027, to finalise negotiations with Tokio Marine on merging their Malaysian general insurance businesses, with RHB potentially retaining up to a 35% stake in the combined entity. (The Edge)

TSH Resources Bhd denied that its Indonesian plantation operations contributed to transboundary haze, stating that all 274 hotspots detected within its estate boundaries between Jan 1 and Oct 21 were in community enclave areas outside its planted and operational areas. (The Edge)

RedPlanet Bhd targets annual earnings growth of 10% to 20% over the next three to five years, supported by rising demand for utility grid upgrades and railway infrastructure amid data centre expansion and urban rail development. (The Edge)

Aizo Group Bhd saw its RM36.79m sewage system upgrading subcontract in Terengganu terminated after the project owner cancelled the main contract, with the main contractor reserving its rights to pursue claims for losses. (The Edge)

BMS Holdings Bhd terminated its proposed RM23.8m land acquisition in Cheras after failing to agree on the terms with the vendor, which has refunded the earnest deposit with no further claims from either party. (The Edge)

Harbour-Link Group Bhd agreed to acquire two container vessels for RM56.68m to expand its fleet and cater to growing regional demand for container transportation. (The Edge)

Jati Tinggi Group Bhd led a consortium that secured a RM568.2m contract from Tenaga Nasional for a transmission main intake substation in Paka, Terengganu, with Jati Tinggi’s 55% share worth RM312.51m and completion scheduled within two years. (The Edge)

Exsim Hospitality Bhd secured a RM13.49m subcontract from Binastra Corp for the supply, fabrication, delivery and installation of carpentry works, with completion scheduled for June 2028. (The Edge)

Pavilion Real Estate Investment Trust reported flat 3QFY26 net property income of RM145.58m, while distributable income fell 1.4% to RM96.47m, translating to a lower DPU of 2.45 sen compared with 2.49 sen a year ago. (The Edge)

Foodie Media Bhd reported FY2026 net profit up 67.7% to RM15.67m and revenue up 49.6% to RM55.49m, driven by stronger demand for digital content, influencer marketing and events; it declared total quarterly dividends of 1 sen per share, bringing FY2026 dividends to 1.53 sen per share. (The Edge)

Sentiment: Negative
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