Market Review

MY: The FBM KLCI extended its decline amid elevated bond yields and rising oil prices. Market breadth remained negative, with 684 decliners against 412 gainers. Sector-wise, 11 of the 13 sectors closed lower, with Energy and REITs the only gainers, while Financial Services lagged the most.

US: Wall Street ended lower, with the Dow declining 0.3%, the S&P 500 shedding 0.2% and the Nasdaq easing 0.1%, as the 30-year Treasury yield climbed to levels unseen since 2002. Meanwhile, Brent crude fell 2.6% to USD102/bbl amid concerns over shifting global demand.

The Day Ahead

US: Wall Street remains under pressure from elevated long-dated yields, with the 30-year Treasury yield reaching a 24-year high of 5.62%, weighing on equity valuations. Attention now turns to AI-related earnings, with Micron reporting FY4Q results today, putting memory pricing and HBM demand in focus. NVIDIA also remains on the radar after increasing its share repurchase authorisation by USD150.0bn to USD235.0bn through FY2028, reflecting management’s confidence in the long-term AI opportunity. Meanwhile, Microsoft continues to benefit from robust AI and cloud demand, with FY4Q Microsoft Cloud revenue rising 27.0% YoY to USD59.3bn.

MY: Locally, we anticipate sustained interest in data centre infrastructure and regional expansion plays as Malaysia strengthens its digital infrastructure ecosystem. PWRWELL could attract attention following its strategic collaboration with Socomec to develop integrated power train units (PTUs) combining power distribution and UPS systems for large data centres and hyperscale facilities. Meanwhile, UMSINT has proposed a RM450.0m private placement, with RM332.0m earmarked for its Penang expansion and a further RM111.0m for projects in Vietnam and Singapore. KGB also remains in focus following its largest-ever contract win worth RM1.8bn (14 Sep 2026), lifting its order book to more than RM3.6bn and extending earnings visibility through 2029.