Market Review

MY: Following President Trump’s rejection of Iran’s peace proposal aimed at ending the conflict and reopening the Strait of Hormuz, regional markets traded broadly lower, including the local bourse. Sector-wise, Transportation & Logistics (+0.51%) outperformed, while Healthcare (-2.2%) was the biggest decliner.

US: Wall Street closed lower as weakness in technology stocks following OpenAI’s decision to pause training of its latest models, coupled with a deepening Treasury sell-off, weighed on sentiment. Meanwhile, the 10-year Treasury yield climbed above 5.2%, while Brent crude rebounded as US–Iran tensions remained elevated.

The Day Ahead

US: With the 10-year Treasury yield touching a 19-year high of 5.27% before easing to 5.23% amid elevated energy costs and inflation concerns, we expect Wall Street to remain soft. Nvidia (NVDA) may stay in focus after announcing a USD150bn expansion to its share repurchase programme and unveiling new AI security software to prevent rogue autonomous agents. Any formalisation of AI licensing channels during the upcoming US–China AI dialogue in November could also provide a re-rating catalyst, as its guidance assumes no Data Center compute revenue from China. Lastly, amid surging advanced-packaging demand, traders may also position into KLA Corporation (KLAC).

MY: Tracking Wall Street’s negative overnight performance, we expect the FBM KLCI to extend its losses today. Meanwhile, investors are likely to remain focused on potential beneficiary sectors ahead of the Budget 2027 announcement next week, including Construction, Utilities, Technology and Consumer. Stock-wise, we favour BETA, supported by (i) strong earnings momentum following a 53.2% YoY increase in 1QFY27 net profit, (ii) its deeply entrenched relationship with Perodua, and (iii) regional export market expansion following the acquisition of automotive electronics manufacturer Sanshin. Lastly, industrial solutions and semiconductor engineering provider ECOSYS will close its IPO application closes today.