Market Outlook: Higher oil prices offer support to Energy

The FBM KLCI climbed 10.15 points, or 0.59%, to 1,741.61 on Wednesday, compared with Tuesday’s close of 1,731.46. Market breadth was positive, with 665 gainers against 509 decliners.

The rally was led by Utilities (+1.65%) and Energy (+1.62%), as crude oil prices approached US$90 per barrel, supporting commodity-linked counters. However, REITs (-0.40%) and Property (-0.26%) remained under pressure.

Market Outlook

For Malaysia, higher oil prices offer support to Energy and selected Utilities counters but could also raise inflationary pressures and weigh on broader corporate earnings if sustained. Investors remain cautious as uncertainty surrounding the Strait of Hormuz continues.

Utilities and Energy could retain momentum, while Construction may remain supported by data-centre and AI-related investment.

Technically, the FBM KLCI is testing the upper boundary of its downward-sloping channel. A sustained break above 1,760–1,770 would strengthen the bullish case. Immediate support remains at 1,720, followed by 1,700.

#businessnews

Staff Writer

Recent Posts

Global Markets: US headline inflation rising

Wall Street ended mixed while US headline inflation is rising. The Dow Jones slipped 0.04%,…

39 minutes ago

Sime Darby Property: Acquires 556.96 Acres Land In Johor (SDPR MK, Outperform, TP: RM1.55)

This land deal for Sime Darby Property is also consistent with the Group's SHIFT32 strategy,…

18 hours ago

RCE Capital: Lifted by Lower Impairments (RCE MK, Trading Buy, TP: RM1.25)

Financing receivables at RCE Capital declined marginally by 0.5% QoQ to RM2.1bn. Results were in-line…

18 hours ago

HE Group: Secures RM47m DC Job in Johor (HEGROUP MK, Neutral, TP: RM0.68)

The job for HE Group commences on the date of acceptance and is targeted for…

18 hours ago

SD Guthrie: Bolstered by Land Disposal in Kulai (SDPL MK, Outperform, TP: RM7.81)

Analysts maintain Outperform call with a higher TP of RM7.81 for SD Guthrie based on 20x FY27…

18 hours ago

Malaysia Labour Market Faces Stronger Headwinds in 2H26

Malaysia’s labour market remained resilient in June, but softer hiring momentum and rising job losses…

19 hours ago

This website uses cookies.