Market Review

MY: The local bourse traded on a cautious note as escalating US-Iran tensions around the Strait of Hormuz pushed Brent crude oil above US$100/bbl. Sector-wise, Health Care (+7.02%) outperformed, led by TOPGLOV (+13.5 sen) and HARTA (+18.0 sen), while Consumer Products (-0.82%) was the weakest performer.

US: Wall Street closed lower on Thursday as Brent crude surged to US$107.63/bbl on heightened oil supply concerns. Meanwhile, August producer prices rose 0.4% MoM, reinforcing inflation concerns and pushing Treasury yields higher. Consequently, the S&P 500, Dow and Nasdaq fell 0.6%, 0.6% and 0.7%, respectively.

The Day Ahead

US: We expect Wall Street to remain risk-off as Brent crude stays above US$100/bbl and the US 10-year Treasury yield hovers near 5%, reinforcing inflation and higher-for-longer rate concerns ahead of the CPI release. We favour Exxon Mobil and Chevron as direct beneficiaries of elevated oil prices. Chubb could also benefit from higher investment yields, with 2Q26 adjusted net investment income reaching a record US$1.88bn (+11.4% YoY), alongside a strong 83.8% P&C combined ratio. Meanwhile, TD SYNNEX remains supported by record 2QFY26 results, while Twilio continues to benefit from 17% organic revenue growth and its raised FY26 guidance.

MY: Closer to home, we expect the FBM KLCI to trade cautiously amid elevated global yields and oil prices, while interest in the Data Centre theme should remain intact. PEKAT remains in focus after securing RM57.2m of new hyperscale data-centre subcontracts in Johor. YTLPOWR is supported by sequentially stronger 4QFY26 earnings and its proposed gigawatt-scale data-centre campus at Sedenak Tech Park. Meanwhile, JTGROUP remains well positioned to benefit from continued power infrastructure spending, following its RM69.5m TNB contract for a new 132/33kV GIS substation and 132kV overhead line in Tumpat, Kelantan, alongside its RM46.7m underground cable subcontract.