While quarter one impact should be partial, management guidance will be key in assessing how higher energy costs and supply disruptions are feeding into margins, and whether resilient domestic demand can offset rising pressures.
The Negeri Sembilan state crisis is casting doubt on the stability of the federal unity government, while also reshaping expectations around future state elections and political alliances.
Markets will be watching closely for potential spillover effects at the national level, including any implications for the timing of the next general election.
“We are of the view that the market will likely remain range-bound in May as investors weigh potential earnings risks from rising costs, slower global growth and heightened geopolitical uncertainty stemming from the Iran conflict,” said APEX Securities.
Moreover, a potential meeting between Donald Trump and Xi Jinping could introduce episodic risk-on/risk-off swings depending on signals of escalation or de-escalation.
Domestically, the unfolding Negeri Sembilan state crisis adds a degree of political uncertainty, but such developments are not uncommon in Malaysia and largely reflect a familiar centre–state dynamic.
Importantly, APEX does not see this translating into broader tensions between UMNO and PH at the federal level.
“As such, we see the PH–BN cooperation model remaining intact, at least until the next general election approaches,” said APEX.
That said, they expect market downside to be capped by earnings lift from the resilient domestic demand, continued strength in the AI-driven technology upcycle, ongoing data centre investments, and sustained momentum in E&E exports.
These structural tailwinds should help cushion against external headwinds. “Our top three picks are ViTrox, Mi Technovation, and MSC,” said APEX. —May 4, 2026
Main image: New Straits Times
