Malaysia Morning Wrap | FBM KLCI Seen Oscillating in 1,600-1,630 Range Amid Await of Catalysts
Key Takeaways:
• U.S. Stocks Edge Higher on Softer PCE and Big Tech Gains
• KLCI Eases on Caution Ahead of BOJ and US Data
• M-REITs Face Uncertainty Over Withholding Tax Concession
• Stocks to watch: MISC Bhd, Bintai Kinden, etc.
🇺🇸Wall Street Summary
$S&P 500 Index (.SPX.US)$ 6,870.40 (+0.19%)
$Dow Jones Industrial Average (.DJI.US)$ 47,954.99 (+0.22%)
$Nasdaq Composite Index (.IXIC.US)$ 23,578.13 (+0.31%)
U.S. stocks inched higher Friday as a cooler inflation print and a rebound in select Big Tech outweighed fresh crypto weakness. $Nasdaq Composite Index (.IXIC.US)$ rose 0.3% to 23,578.13, the $Dow Jones Industrial Average (.DJI.US)$ added 0.2% to 47,954.99, and the $S&P 500 Index (.SPX.US)$ gained 0.2% to 6,870.40. The S&P and Nasdaq have now advanced four straight sessions; the Dow is up in three of the past four.
Big Tech leaders paced the move: $SanDisk (SNDK.US)$ +7.1%, $Salesforce (CRM.US)$ +5.3%, $Micron Technology (MU.US)$ +4.7%, $CoreWeave (CRWV.US)$ +3.0%, $Broadcom (AVGO.US)$ +2.4%, $Intel (INTC.US)$ +2.3%, $Palantir (PLTR.US)$ +2.2%, and $Meta Platforms (META.US)$ +1.8%.
Crypto slid: $Bitcoin (BTC.CC)$ −3.2% to $89,323.86; $Ethereum (ETH.CC)$ −3.5% to $3,023.11; $Solana (SOL.CC)$ −7.4% to $132.58; $Ripple (XRP.CC)$ −3.4% to $2.03.
Core PCE—the Fed's preferred inflation gauge—came in at 2.8% for September after a shutdown delay, below the 2.9% forecast but still above the 2% target. The softer print lifted odds of a quarter‑point cut after Wednesday’s meeting to about 87% (vs. 62% a month ago), per CME FedWatch.
🇲🇾Bursa Market Insight
$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ 1,616.52 (-0.28%)
Malaysian equities ended softer on Friday, mirroring a mixed performance across the region as investors turned cautious ahead of a possible Bank of Japan rate increase and US data that could influence the Federal Reserve's decision next week.
At the 5 pm close, the $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ slipped 4.55 points, or 0.28%, to 1,616.52, having recovered from steeper intraday declines. The index opened slightly lower at 1,620.70 and fluctuated between 1,609.67 and 1,621.25.
Market breadth was weak, with 604 losers topping 439 gainers; 550 counters were unchanged, 1,151 saw no trades, and 18 were suspended. Turnover thinned to 3.17 billion shares valued at RM2.24 billion, down from 4.48 billion shares worth RM2.75 billion on Thursday.
Rakuten Trade's vice-president of equity research, Thong Pak Leng, expects the FBM KLCI to trade sideways in a 1,600–1,630 band this week as investors await fresh catalysts at home and abroad. With sturdy support around 1,600 and few immediate drivers, he sees range-bound action fostering further consolidation.
Prime Minister Anwar Ibrahim said Malaysia's hardcore poverty rate has fallen to 0.09%, positioning the country close to eliminating it entirely. He aims to resolve remaining cases by the first quarter of 2026, crediting people-focused Madani initiatives—such as Adopted Village, Adopted School, and SejaTi Madani—backed by strong inter-agency coordination.
Malaysia's REIT sector risks a policy overhang as the 10% withholding tax on distributions to individuals and non-residents is set to expire on Dec 31, 2025, with no extension confirmed. If it lapses, investors would revert to marginal tax rates, potentially cutting post-tax yields by 50–100 bps and undermining competitiveness versus Singapore and Thailand—possibly prompting foreign outflows.
Maybank IB still expects renewal for YA 2026 but urges prompt MOF guidance for tax planning. The MRMA is lobbying for continuation, as prolonged uncertainty could pressure sentiment despite stable sector fundamentals.
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🔔Stocks to Watch
Malaysia's Court of Appeal cut the arbitration award against a $MISC (3816.MY)$ unit in the Gumusut‑Kakap semi‑FPS dispute with Sabah Shell Petroleum to US$200 million (RM822.2 million), down from US$330.17 million, excluding costs and interest.
$BINTAI (6998.MY)$ is suing vendor Yeo Eng Lam in the Melaka High Court to claim RM9.1 million under the profit guarantee for its 2021 purchase of Johnson Medical International.
Newly listed $GEOHAN (5345.MY)$ won two Penang LRT Mutiara Line contracts worth RM59 million from SRS LRT, covering bored piling works under sub‑packages BP01 (RM31.2 million) and BP02 (RM27.8 million).
$GENTING (3182.MY)$ launched a new unrated RM5 billion MTN programme, with the first series to partly fund its takeover offer for Genting Malaysia. Separately, Genting RMTN issued a RM1.35 billion eighth tranche under its existing RM10 billion MTCN programme.
$ANCOMNY (4758.MY)$ will sell 25% of new unit Maxlive to Thailand’s TOPNEXT for US$9.32 million (RM38.3 million) now, with an option for another 25% at the same price within five years, totaling about RM77 million.
$QUALITY (7544.MY)$ won a RM294.6 million contract from the Sarawak Rural Water Supply Department to build and upgrade the Mukah water supply system, a 30‑month job starting January 2026.
$HKB (0359.MY)$ landed a RM42.8 million contract from Jaya GC to build an immigration post and staff quarters in Serikin, Bau, Sarawak. The 24‑month project starts this month and is expected to boost FY2026 results.
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Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The Edge.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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