Market Review

MY: The local bourse snapped its losing streak on bargain hunting, with the FBM KLCI gaining 0.43% to 1,651.17 despite elevated global bond yields. Market breadth remained negative. Sector-wise, Construction (+2.07%) outperformed, led by GAMUDA and SUNCON, while Energy (-2.65%) lagged the most.

US: Wall Street ended mixed, with the Dow falling 0.9% and the S&P 500 easing 0.3%, while the Nasdaq gained 0.2% on semiconductor strength. Meanwhile, the US 10-year Treasury yield climbed to around 5.3%, while Brent crude advanced to around USD98/bbl.

The Day Ahead

US: Wall Street may remain mixed as elevated Treasury yields continue to weigh on valuations, although softer-than-expected PCE data has eased near-term Fed hike concerns. Against this backdrop, AI and semiconductor momentum remain key supports. Micron is in focus following record 4QFY26 results and an upbeat outlook, reinforcing expectations of sustained AI-driven memory demand. Meanwhile, Hewlett Packard Enterprise could see continued interest after securing a USD1.2bn AI server order from Vultr and raising its networking growth outlook. AMD also remains on the radar following its USD8.2bn acquisition of World Labs, strengthening its capabilities across AI models, infrastructure and physical AI.

MY: Closer to home, we expect the FBM KLCI to remain mixed, although stronger semiconductor sentiment could continue to underpin selected technology counters. UWC could attract attention after FY26 net profit surged 132.0% YoY to RM93.8m, with 4QFY26 net profit rising nearly 130% YoY to RM37.6m on stronger semiconductor demand and a more favourable product mix. Meanwhile, KGB remains in focus after securing a fresh RM172.0m contract for an advanced data-storage manufacturing facility in Kuching, bringing total awards from the same customer to RM283.0m. Elsewhere, VIS may remain in focus following its improved earnings performance, supported by stronger machine sales.