The FBM KLCI opened marginally higher on Friday as Apex Securities cautioned that elevated oil prices, persistent foreign selling and geopolitical uncertainty could limit a market recovery ahead of Budget 2027.
The benchmark index stood at 1,602.94 at the opening, with most heavyweight stocks struggling to rebound after recent losses.
Apex Securities said global equities faced continued pressure from rising long-term bond yields and signs of strain in the artificial intelligence trade, while oil prices remained sensitive to developments in the US-Iran conflict, per The Star.
“Though equities have been resilient, further upside in long-end yields could bring more significant headwinds, and a higher-for-longer rate environment looks set to persist,” the research house said.
Brent crude futures for December delivery rose above US$103 a barrel overnight after Yemen’s Iran-backed Houthi movement attacked Saudi Arabia, while a storm approached oil-producing areas in the Gulf of Mexico.
Apex expects the local market to remain volatile in the near term, with oil price movements, foreign fund flows and geopolitical developments likely to outweigh domestic catalysts before Budget 2027 is tabled on Friday.
“We stay cautious to conservative on the local bourse, as persistent foreign selling, elevated crude oil prices and geopolitical uncertainty are likely to cap any rebound,” it said, identifying the Budget as the next key event for market direction.
Among actively traded counters, Dnex gained half a sen to 53 sen, L&G rose half a sen to 19.5 sen, while XDL was unchanged at 0.5 sen.
