Market Review

MY: The local bourse rebounded despite subdued broader market sentiment, with 751 losers outpacing 331 gainers. The benchmark was supported by gains in PCHEM and PMETAL. Sector-wise, Health Care (+0.60%) outperformed, led by TOPGLOV and SUNMED, while Technology (-2.16%) lagged the most.

US: Wall Street ended mostly higher on Tuesday as post-earnings gains in 3M, Equifax and Hasbro offset technology weakness. The Dow rose 1.0% and the S&P 500 gained 0.3%, while the Nasdaq edged lower. Easing oil prices supported sentiment, although caution ahead of SpaceX and Netflix earnings capped gains.

The Day Ahead

US: Wall Street may extend its recovery, supported by easing oil prices and lower Treasury yields, although investors remain focused on clearer returns from AI investments. Wednesday's earnings from Magnificent Seven members Meta Platforms and Tesla, alongside IBM and Lam Research, will be key sentiment drivers. Meta's AI monetisation and capital expenditure plans will test the sustainability of infrastructure spending, while Tesla's automotive margins and robotaxi progress will shape its growth outlook. Meanwhile, IBM and LRCX will provide further insights into enterprise IT spending and semiconductor equipment demand.

MY: The FBM KLCI may remain mixed amid elevated oil prices, global AI-sector volatility and persistent foreign selling. Stock-wise, we favour 99SMART, which may benefit from Budget 2027's increased STR-SARA allocation of RM16bn from RM15bn in 2026. Strong utilisation is evident, with nearly RM11bn disbursed as of September and monthly SARA utilisation reaching 99.7%. Meanwhile, a proposed CPO export-tax waiver could boost export competitiveness for plantation players such as TAANN and SWKPLNT, although implementation remains uncertain. Separately, Sarawak's 15GW power-generation target by 2035, with at least 60% from renewables, could benefit infrastructure players such as MNHLDG through potential grid and substation projects.