Market Overview
On Friday morning (October 10), the FTSE Bursa Malaysia KLCI (FBM KLCI) extended mild weakness after Thursday’s rally. As of 9:15 am, the index fell 4.88 points (-0.30%) to 1,625.15, dragged by energy, banking, and telecommunications counters.
Market breadth was mixed, with 230 gainers, 320 decliners, and 400 unchanged, and a turnover of 540 million shares worth RM 270 million in early trade.

Analysts said the market is consolidating as investors await more clarity from the upcoming Budget 2026, while regional markets also traded cautiously.

Regional and External Factors
Asian markets were broadly mixed, with Japan and South Korea posting modest gains while China’s indices moved sideways. Overnight, U.S. jobless claims data came in line with expectations, reinforcing the view that the Federal Reserve may keep rates steady.
These developments encouraged defensive positioning in sectors such as consumer staples and utilities, while speculative interest remained subdued.

Sector Highlights

• Financials: Maybank and Public Bank traded lower as investors rotated out of heavyweights.

• Energy: Petronas Chemicals and Dialog Group saw mild selling pressure early on, but the latter remained resilient following positive institutional calls.

• Technology: Counters such as Inari and Frontken continued to attract attention, supported by Nasdaq’s strong performance overnight.

• Plantations: Hap Seng Plantations traded flat, supported by firmer crude palm oil (CPO) prices and improved output expectations.

Stocks to Watch

StockCodeWhy It MattersDialog Group BhdDIALOG (7277.KL)RHB Research named Dialog as one of its top picks today, citing its strong position in the downstream oil & gas value chain, steady cash flow, and exposure to rising demand for storage and petrochemical services. The company’s low gearing and stable margins make it attractive for medium-term investors. Hap Seng Plantations BhdHAPSENG (5138.KL)Also recommended by RHB, Hap Seng benefits from the recovery in CPO prices and improved production yields. The company’s efforts in sustainable planting and value-added downstream operations enhance its long-term competitiveness.

Market Drivers

• Institutional Focus: Stocks highlighted by local research houses saw early inflows, signaling selective accumulation by domestic funds.

• Foreign Participation: Foreign investors showed renewed interest in technology and commodity-linked counters, contributing to sector rotation.

• Policy Anticipation: Investors are positioning ahead of the Budget 2026 announcement, which may unveil incentives for manufacturing and renewable energy.

• Regional Volatility: Global investors remain cautious as they await U.S. CPI data and the Fed’s next policy direction, keeping Asian markets in a tight range.

Overall, the Malaysian market traded in consolidation mode, with energy and plantation-related stocks emerging as potential defensive plays amid policy-driven uncertainty.
Analysts expect short-term volatility to persist but see selective opportunities in companies with strong fundamentals and sector tailwinds.