Market Review

MY: Tracking positive regional performance, the local bourse continued to trade higher ahead of the Budget 2027 announcement. Market breadth turned positive, with 667 gainers against 456 losers. Sector-wise, both Technology and Healthcare outperformed with gains exceeding 3%, while Financial Services lagged the most.

US: Wall Street logged solid gains with the Dow rising 0.5%, the S&P 500 gaining 0.6% to reach new record highs, and the Nasdaq jumping 0.5% higher as US 10-year Treasury yields slipped to 5.3%, while Brent crude hovered at USD100/bbl amid potential Strait of Hormuz supply disruptions.

The Day Ahead

US: Wall Street may retain its constructive tone after the S&P 500 and Nasdaq reached fresh record highs, helped by easing Treasury yields and stabilising oil prices. AI remains a key earnings driver, with Marvell (MRVL) in focus after raising its FY2028 revenue target to USD20.0bn and guiding FY2031 revenue to USD70.0–90.0bn, underpinned by strong demand for custom AI silicon and optical connectivity. Meanwhile, Salesforce (CRM) could benefit from renewed strength in enterprise software as concerns over AI disruption ease, while Meta (META) continues expanding its AI offerings to businesses through its Meta Enterprise Platform.

MY: On the local front, the FBMKLCI is poised to track global tech strength, with sentiment supported by robust earnings and positioning ahead of Budget 2027 on 9 October. The semiconductor and automation space could remain in focus, with semiconductors, AI and high-value investments among the Government’s key priorities. UWC stands out after 4QFY26 revenue jumped 71.1% to RM186.2m, while net profit surged 129.7%, reflecting stronger semiconductor demand and project execution. VITROX could also attract interest following a sharp improvement in 2QFY26 earnings. Meanwhile, TOPGLOV offers an earnings-driven play after 4QFY26 revenue rose 39.7% to RM1.25bn, with net profit surging 352.6%.