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Market Highlights
Market Outlook
Wed, 03 Jun 2026 07:49 am
Market Outlook - GE16 Countdown Begins?

• The FBM KLCI fell 38.95 points, or 2.3% month-on-month, in May 2026 weighed by GE16 speculation, weaker regional sentiment and continued foreign fund outflows from ASEAN markets.
• June will be a crucial month for global markets, as key US economic data and Fed Chair Kevin Warsh’s first FOMC meeting could reinforce the higher-for-longer rate outlook, supporting the US Dollar and weighing on risk assets.
• Domestically, the Johor State Election will be the key political event, with investors closely watching the outcome for clues on the likelihood of an earlier-than-expected GE16.
• Despite near-term volatility, we remain constructive on the Malaysian market, supported by resilient domestic demand, ongoing infrastructure and data centre investments, and continued strength in the technology and E&E sectors.
• Our top picks are ViTrox, Mi Technovation, MSC and MITRA. 

Economic Update
Thu, 21 May 2026 07:29 am
Malaysia External Trade - Wary of rising risks despite strong headline growth

• Exports surged to +36.9% YoY in April (Mar: +8.4%), while imports accelerated to +20.0% (Mar: +10.4%). The trade surplus widened to RM28.8bn (Mar: RM24.5bn).
• Manufacturing exports (+40.1% YoY; Mar: +9.6%) accounted for the bulk of April’s surge, while commodity exports provided additional support.
• Exports should continue to benefit from sustained E&E demand and firmer commodity prices, although growth may moderate as frontloading activities gradually fade.
• External risks remain elevated, stemming from the prolonged Middle East conflict and persistent uncertainty surrounding US trade policy.
• We revise our 2026 export growth forecast to +8.1% YoY (previously +4.8%), reflecting robust year-to-date growth.

Economic Update
Wed, 20 May 2026 07:23 am
Malaysia Inflation Rate - Inflation contained but risks building up    

• Malaysia’s headline inflation rose to +1.9% YoY in April (Mar: +1.7%), in line with consensus, driven mainly by higher transport costs.
• Core inflation remained steady at +2.0% YoY (Mar: +2.1%), hovering just below its 2021–2025 average of +2.1%, suggesting relatively firm demand conditions.
• A gradual pickup in cost-push pressures is likely, driven by elevated energy prices and the passthrough of higher business input costs to consumers.
• We keep our 2026 inflation forecast at +2.1% YoY, with upside risks stemming from a potential RON95 price adjustment and larger-than-expected cost passthrough.
• A material overshoot in inflation beyond expectations could weigh on consumer spending and broader economic growth.

Technical Calls
Stock Research
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EUR 4.614086 4.622429
CNY 0.585467 0.586538
HKD 0.504022 0.507964
SGD 3.092670 3.114543
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