26/03/2026

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THURSDAY | MAR 26, 2026

FBM KLCI tipped to remain steady in near term

PETALING JAYA: OSK Holdings Bhd is seeking shareholder approval to buy back up to 10% of its shares, as it looks to strengthen shareholder value and support its share price. In a filing with Bursa Malaysia, the group said the proposal will be tabled at its annual general meeting (AGM) on April 23. If approved, the company will be allowed to purchase its shares from the open market. The mandate will remain in place until the next AGM, unless renewed Kitacon lands RM99 million residential works job in Cyberjaya PETALING JAYA: Kumpulan Kitacon Bhd has secured a RM99.28 million construction contract in Cyberjaya, adding fresh momentum to its order book as it heads into the second half of 2026. In a filing with Bursa Malaysia, the group said its wholly owned unit, Kitacon Sdn Bhd, has accepted a letter of award from ParkCity Botanika Sdn Bhd for main building works in a resi dential development in Cyberjaya, Selangor. The contract covers the construction and completion of 147 strata-terrace homes – com prising 128 three-storey units and 19 units with covered parking – along with supporting infra structure, such as a guardhouse, an electrical substation and shared facilities. The project sits on a parcel in Mukim Bandar Cyberjaya, within Sepang District. Work is slated to begin on May 2, with a construction period of 24 months. The latest win is expected to contribute positively to Kitacon’s earnings and net assets per share from the financial year ending Dec 31, 2026, through to completion. The group noted that the contract will not affect its share capital or ownership structure. Kitacon flagged execution and external risks, including potential fluctuations in the economic and regulatory landscape, as well as operational challenges such as material shortages and labour constraints. These are standard industry risks, which the group said it will manage through appropriate mitigation measures. There were no interests, direct or indirect, from directors or major shareholders in the contract, the filing noted. The award underscores steady demand for landed residential projects in the Klang Valley’s southern corridor, particularly in Cyberjaya. For Kitacon, which has been building out its presence in the residential construction segment, the job adds visibility to its near term earnings pipeline.

domestic investor base. “There is less than 20% foreign ownership of Bursa equities, but around 35% of trades involve foreigners. About 80% of Malaysian equities are held locally, mostly by GLICs such as EPF, which helps stabilise the market against external shocks.” He added that while foreign investors may turn net sellers, some inflows could also emerge if Bursa Malaysia is seen as a safe haven. “The recent news of a five-day pause in US military action against Iran caused oil prices to fall 14%. This should help improve market sentiment if the pause holds,” Williams said. BM&P Consult business and technology consultant Thavanesh Gopalan said stagflationary pres sures could weigh on the broader market despite the index’s relative resilience. “The KLCI may remain supported by Petronas-linked stocks and plantations, but mid- and small-cap stocks are likely to come under pressure. The KLCI will likely hover in a wide range (1,680–1,750) until the five-day pause expires. If strikes proceed, expect a sharp break below 1,650 as the global recession narrative takes over,” he told SunBiz . Yesterday, the FBM KLCI closed at 1,716.68, up 7.92 points or 0.46%. Volume stood at 2.82 billion shares,

allow it to repurchase up to 314.3 million shares, equivalent to 10% of its issued share capital. The group’s public shareholding spread, currently above 40%, is expected to remain well above the regulatory minimum even if the mandate is fully utilised. The board has recommended shareholders vote in favour of the proposal, describing it as a prudent way to enhance long-term value while maintaining flexibility in capital management. “While there are reports of diplomatic channels being explored, Iran has denied any formal talks, and there is still no credible signal that a peace process is under way. Markets are reacting more to the possibility of de-escalation rather than any confirmed breakthrough,” he said. From a macro perspective, Mohd Sedek said the recent market movement reflects a pullback in the geopolitical risk premium rather than a fundamental improvement. “Oil is still flowing through the Strait of Hormuz, suggesting disruption risks are being managed but not eliminated. As such, markets remain highly headline-driven, and any shift in oil prices or geopolitical developments could quickly change the tone,” he added. with a year-to-date return of 2.18%. Speaking to SunBiz , IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the local bourse tracked a broader regional rally as oil prices retreated sharply, easing immediate concerns over a supply shock. He said Brent crude dropped more than 4% after reports of a possible US-drafted ceasefire proposal, and that move was enough to ease immediate concerns about a supply shock. “When oil comes off like this, it quickly feeds into lower inflation expectations and takes some pressure off global policy outlook, which in turn gives equities a bit more room to move higher.” He noted that sentiment across Asia turned positive, with Hong Kong’s Hang Seng Index rising 2.8%, South Korea’s Kospi up 2.7% and Japan’s Nikkei 225 and Topix gaining 1.4% and 2.1%, respectively. Mohd Sedek said the rebound was driven by a shift in market expectations around the conflict, after the US delayed potential strikes on Iranian energy infrastructure, prompting investors to lean towards a more contained scenario. This, he added, brought buyers back into financial and technology stocks across the region. However, he cautioned that the geopolitical situation remains uncertain.

o Analysts cite strong domestic support, say prolonged or escalation of Middle East conflict will weigh on sentiment but impact will vary across sectors

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Logistics and airline companies are likely to be the most affected sectors, while defensive sectors such as telecommunications and banking may offer relative resilience, Vong said. Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said US-Iran tensions would weigh on investor sentiment globally, with Malaysia not spared, although the impact would vary across sectors. “In Malaysia, the broader market is likely to be affected, although the impact will vary across sectors. Upstream oil and gas as well as plantation stocks could benefit from higher commodity prices, particularly crude oil and palm oil. However, most other sectors may face cost pressures and volatility,” he told SunBiz . Economist Geoffrey Williams, in comments to SunBiz , said develop ments in the Middle East would affect financial markets, but the impact on the FBM KLCI is likely to be more muted given its largely

PETALING JAYA: Market analysts believe Bursa Malaysia’s benchmark FBM KLCI should remain steady in the near term on strong domestic support, even as Middle East tensions weigh on sentiment. EquitiesTracker Holdings Bhd CEO and executive director Alvin Vong Chen Weng said further escalation in the Middle East conflict would be negative for overall market sentiment, particularly if it leads to a prolonged closure of the Strait of Hormuz. Vong said companies with high exposure to fuel costs, especially those reliant on diesel domestically, would be among the hardest hit if the conflict drags on. “My view is that the FBM KLCI in the short term may be quite insulated unless there’s a global sell-down across all markets, also in 2025, we saw foreign institutions being net sellers in our local market,” he told SunBiz .

An economist says impact on the FBM KLCI is likely to be more muted given its largely domestic investor base. – BE R NAMAPIC

OSK seeks share buy-back mandate from shareholders

position to undertake the exercise, with retained profits of about RM2.05 billion as at end-2025. The buyback is expected to be funded primarily from internal funds, with minimal borrowing if needed. The board said any purchases will be made only after meeting solvency requirements and without materially affecting cash flow. As at the latest practicable date, OSK held about 49.8 million treasury shares. The proposed mandate would

the stock more attractive to investors.” The mandate will also give OSK greater flexibility in managing its capital. Shares bought back may be

by shareholders. OSK said any buyback will depend on market conditions, available funds and overall market sentiment. The group noted that such a programme can help stabilise trading and support the stock’s underlying value, especially during periods of volatility. “By reducing the number of shares in circulation – if the shares are cancelled – the exercise could also improve earnings per share and make

cancelled, kept as treasury shares, resold in the market, or distributed as dividends. OSK said it is in a strong financial