Bursa Malaysia ekes out early gains, utilities and RE stocks advance

KUALA LUMPUR, 25 SEPTEMBER 2026 —

The FBM KLCI edged higher in early trade on Friday, rising 1.21 points, or 0.07 percent, to 1,673.52 at 9.15 a.m. local time after opening 2.56 points higher at 1,674.87, a modest gain that contrasted with a muted overnight performance on Wall Street.

The modest advance came as investors weighed the impact of elevated global bond yields and a rebound in oil prices, factors that have kept risk appetite in check across regional markets.

The United States’ major indices posted mixed results after the close of the Asian session: the S&P 500 slipped 0.02 percent to 7,704.13 points, the Nasdaq inched up 0.01 percent to 26,939.37 points, while the Dow Jones Industrial Average fell 0.31 percent to 51,349.98 points.

Within the Kuala Lumpur market, utilities and renewable‑energy stocks led the early gains. Northern Solar surged 9.32 percent to RM1.29, Solarvest climbed 3.08 percent to RM4.02 and Tenaga Nasional rose 0.77 percent to RM13.16. Other notable gainers included Hong Leong Financial Group, which added ten sen to close at RM18.96, PETRONAS Dagangan, up ten sen to RM20.10, and Press Metal Aluminium, which rose three sen to RM7.49.

Conversely, several blue‑chip names slipped. Nestlé fell 78 sen to RM90.68, Malaysian Pacific Industries dropped 28 sen to RM43.22, Dutch Lady lost 26 sen to RM30.10 and PETRONAS Chemicals slipped ten sen to RM4.48. The mixed performance underscored the selective trading pattern that market participants have adopted amid external uncertainties.

Berjaya Research Sdn Bhd kept a cautious bias on the FBM KLCI for the near term, citing the continued weight of external factors on sentiment and the resulting limitation on risk appetite. “The recent pullback, coupled with broad‑based weakness and late‑session selling in selected index heavyweights, suggests that investors remain selective amid the uncertain external backdrop,” the research house said. It added that rising bond yields could further curb risk appetite in the equities market.

From a technical standpoint, the index formed another bearish candlestick after a choppy session, signalling that momentum remains fragile. Immediate resistance levels were identified at 1,687 points and 1,700 points, while support levels were pegged at 1,660 points and 1,655 points, respectively. “The broader market is expected to remain indifferent as bouts of profit‑taking continue while awaiting fresh catalysts to emerge,” Berjaya Research said.

“Nevertheless, the spike in oil prices may present some trading opportunities within oil & gas‑related stocks today,” it added.

Malacca Securities echoed the cautious outlook, noting that elevated bond yields and higher oil prices would likely keep the FBM KLCI on a tentative footing. The firm highlighted that upstream oil and gas counters could still attract trading interest despite the broader risk‑off tone.

Hibiscus Petroleum, for example, offers direct exposure to higher oil prices, with production reaching about 32,000 barrels of oil equivalent per day in July and FY 2027 sales guided at 10.7 million to 11.2 million barrels of oil equivalent. The research house also pointed to Dayang Enterprise, which remains supported by an order book exceeding RM4 billion, including a RM1 billion Saudi maintenance, construction and modification tender that could add upside potential.

Deleum was mentioned as another name with earnings visibility, backed by a RM2.4 billion order book and ongoing production optimisation, maintenance and asset‑enhancement activities.

The early market movement reflected a broader regional pattern where investors are balancing the lure of sector‑specific opportunities against the backdrop of tighter global financing conditions. Higher U.S. Treasury yields have lifted the cost of capital, prompting investors to favour defensive sectors such as utilities and renewable energy, which showed the strongest early gains.

At the same time, the resurgence in crude oil prices has revived interest in oil‑related equities, a trend that both Berjaya Research and Malacca Securities expect to sustain in the short term.

The cautious stance of local research houses also mirrors the sentiment of institutional investors who have been trimming exposure to high‑beta stocks while awaiting clearer macroeconomic signals. The mixed performance of heavyweight constituents—gains in utilities offset by declines in consumer staples and chemicals—illustrates the selective rotation that has characterised trading in recent weeks.

Looking ahead, the FBM KLCI is likely to test the identified resistance zones at 1,687 and 1,700 points. A breach of those levels could signal a shift toward a more bullish stance, while a slide back toward the support band of 1,660‑1,655 points would reinforce the current cautious narrative. Market participants will also be watching for any fresh catalysts, such as corporate earnings releases or policy announcements, that could tip the balance.

In the meantime, the interplay between bond yields, oil prices and sector‑specific fundamentals will continue to shape trading dynamics. As Berjaya Research noted, profit‑taking is expected to persist while investors await new drivers of market momentum. Malacca Securities’ focus on companies with solid order books and exposure to higher oil prices suggests that firms with tangible operational upside may outperform in the near term, even as broader sentiment remains restrained.

The day’s trading therefore encapsulated a market in transition: modest gains anchored by utilities and renewables, selective weakness in consumer and chemical stocks, and a cautious outlook tempered by external financial pressures. The next few sessions will reveal whether the FBM KLCI can muster enough buying pressure to break through its technical barriers or whether it will retreat to the support levels that have become the floor for risk‑averse investors.

Related: Bursa Malaysia · Kuala Lumpur