Market Review

MY: The local bourse traded cautiously ahead of the crucial US August payrolls report, with market breadth negative as 568 losers outpaced 523 gainers. The index was dragged down by PETGAS and SDG. Sector wise, Telecommunications (+1.31%) outperformed, led by MAXIS and TM, while Plantation (-1.64%) lagged the most.

US: Wall Street closed mainly lower Friday after strong labour data fuelled expectations of further Fed rate hikes. Nonfarm payrolls surged by 162K, far above the 50K forecast, lifting bond yields and pressing credit-sensitive sectors. The S&P 500 slipped 0.4% and the Dow dropped 272 points, while the Nasdaq sled 0.3% down.

The Day Ahead

US: Wall Street will be closed for the Labor Day holiday, with normal trading set to resume on Tuesday. Upon reopening, institutional attention is likely to turn towards S&P Dow Jones Indices’ quarterly rebalancing. Bloom Energy (BE) is in focus after jumping more than 7% in post-market trading following news of its inclusion in the benchmark S&P 500 alongside Illumina (ILMN) and Everpure (P), replacing Molson Coors Beverage, The Trade Desk and Builders FirstSource. The inclusion further highlights BE’s growing exposure to on-site fuel-cell power solutions for AI data centre infrastructure.

MY: Over in Malaysia, the FBM KLCI is expected to remain supported above the 1,700 psychological level, although buying interest may stay selective amid a cautious broader market backdrop. Focus should remain on stock-specific catalysts across infrastructure, renewable energy and industrial growth plays. PEKAT remains a beneficiary of Malaysia’s renewable-energy push, with recent strength bringing the stock close to its 52-week high. KEEMING is supported by an indicative order book of approximately RM246m and growing exposure to data centre M&E works. LWSABAH offers a more defensive angle following strong FY2026 earnings, underpinned by resilient East Malaysian beverage demand and expanded production capacity. GAMUDA also remains well supported by its record RM59.6bn order book and expanding data centre exposure, providing strong earnings visibility.