Market Review

MY: The local bourse edged marginally lower, dampened by rising US Treasury yields after the bond buyback-driven rally in the US faded; NESTLE and TM weighed on the index. Sector-wise, Plantation (+1.20%) outperformed, led by IOICORP and SOP, while Technology (-1.34%) was the weakest performer.

US: Wall Street closed higher on Friday as a surge in materials stocks, a rally in crypto equities, and strong U.S. business activity data offset a resuming bond market sell-off. The Dow, S&P 500 and Nasdaq advanced by 1.0%, 0.4% and 0.4% respectively, while Brent crude reached USD93.9 per barrel amid ongoing Middle East tensions.

The Day Ahead

US: With Canada vowing “dollar-for-dollar” retaliatory tariffs on the US after the collapse of US–Canada trade talks, coupled with ongoing Middle East tensions, we expect that the rebound on Wall Street will not be sustainable in the near term. Stock-wise, we like Interactive Brokers (IBKR), underpinned by (i) its introduction of new products and market expansion, (ii) its integration of next-generation AI and autonomous agentic trading infrastructure, and (iii) its recent 2QFY26 earnings beat. Besides, buying interest emerged in cryptocurrency-related stocks like Robinhood (HOOD) and Coinbase (COIN) following the sharp rally in Bitcoin. Lastly, investors will also be focusing on Nvidia’s (NVDA) Q2 earnings this Wednesday, alongside software leaders Intuit (INTU), Salesforce (CRM), and CrowdStrike (CRWD).

MY: With the local bourse entering a shortened trading week alongside the collapse of US–Canada trade talks, we expect the FBM KLCI to trade on a mixed note. Stock-wise, SCGBHD is pending a further breakout while FOODIE is also seeing an improvement in its share price performance; the former secured a RM403.6m supplementary contract extension from TNB, bringing its total order book to RM1.3bn, while the latter saw its 9MFY26 results already surpass its FY25 full-year results. Lastly, we continue to favour EIPOWER, supported by (i) accelerated revenue conversion from mission-critical DC power delivery, (ii) regional expansion into Thailand, and (iii) a RM219.8m order book providing earnings visibility through 2027.