Market Review

MY: The FBMKLCI stayed cautious after the rate hike by the Fed, leaving market breadth negative with 672 losers outpacing 464 gainers. Sector wise, Technology outperformed, led by VITROX and UWC, while Telecommunications lagged the most. IPO PIONEER closed at RM0.30 compared to its IPO price of RM0.25.

US: Wall Street staged a sharp recovery as the Dow (+0.6%), S&P 500 (+1.1%), and Nasdaq (+1.7%) surged higher following a pull-back in oil prices and bond yields. Sentiment was bolstered by the US 10-year Treasury yield easing to 4.9% and Brent crude dropping to USD104/bbl.

The Day Ahead

US: We expect Wall Street to maintain a positive bias as easing Treasury yields and softer oil prices provide some relief to growth valuations, while resilient AI spending continues to support technology sentiment. Nvidia (NVDA) remains in focus amid sustained AI accelerator demand, with Q3 FY27 revenue guided at USD108bn and its Vera Rubin platform ramping into full production. Meanwhile, Palantir (PLTR) should benefit from continued adoption of its AI software across government and enterprise customers, with its Maven platform gaining traction in defence applications. Continued strength in AI infrastructure spending could also support the broader technology sector.

MY: On the domestic front, the FBM KLCI is expected to trade on a stronger footing, tracking overnight gains on Wall Street, with the recovery in global technology stocks providing some support. INARI remains a recovery play on expectations of improving RF utilisation from the September flagship cycle and continued AI-driven photonics demand. We continue to favour FRONTKN, supported by its NT$920m (RM118.2m) acquisition of industrial land and factory buildings in Tainan to accommodate future capacity expansion. Meanwhile, GLOMAC returned to profitability in 1QFY27 with RM7.6m PAT on more than doubled revenue, while BNASTRA posted 2QFY27 PATMI of RM50.6m (+78.1% YoY), with its order book reaching c.RM6.7bn.