Malaysian equities turned defensive on Wednesday as rising Middle East tensions and elevated bond yields curbed appetite for risk, pulling the benchmark FBM KLCI down 4.85 points to 1,728.51 in early trade and sending the FBM ACE Index lower by 22.67 points, or 0.43%, to 5,301.18. The softer tone followed losses across Asian markets after Wall Street fell overnight, with the S&P 500 down 0.69% and the Nasdaq off 1.33%, while US President Donald Trump's remarks that Washington had not begun, and was not planning, negotiations with Iran weakened hopes for a near-term de-escalation. Apex Securities said plantation, financial and selected industrial names could still draw support from resilient earnings and firm commodity prices, while consumer and growth stocks may remain subdued, adding that "Overall, sector performance continues to remain selective with defensive counters expected to be favoured." The firm also warned the FBM ACE Index was exposed to selling pressure after rising for three straight weeks since the end of July, urging traders to "lock in some profits." Among actively traded stocks, Zetrix AI rose 0.5 sen to 64 sen, Lotte Chemical Titan gained 7.5 sen to 38.5 sen and Pentech added four sen to 33 sen. The retreat came a day after the KLCI stayed largely steady as Brent crude moved above US$90 a barrel, lifting energy and plantation shares such as PETRONAS Chemicals, Kuala Lumpur Kepong and SD Guthrie. Apex said the market remains cautious rather than outright bearish, with short-term direction hinging on whether oil prices stabilize, US-Iran tensions ease, US consumer earnings stay resilient and bond yields soften, or whether fresh geopolitical strain, higher crude and yields, and weaker retail earnings keep investors positioned in defensives.