Market Review

MY: The local bourse ended higher, supported by Wall Street’s overnight gains despite mixed regional market performance. Market breadth was positive, with 623 gainers outpacing 404 losers. Sector-wise, Technology (+2.84%) outperformed, led by VITROX and FRONTKN, while Consumer Products (-0.34%) lagged the most.

US: Wall Street ended higher on Wednesday, lifted by gains in technology, industrial and financial stocks. The Dow rose 0.7%, while the S&P 500 and Nasdaq gained 0.6% and 1.1%, respectively, led by IBM and Nvidia. Netflix's decline capped gains, while easing volatility supported sentiment despite firmer oil prices.

The Day Ahead

US: Wall Street may extend its tech-led recovery as strong AI-related earnings support sentiment, although elevated oil prices and Treasury yields could temper gains. Meta Platforms (META) reported 26% revenue growth but raised the lower end of its FY26 capex guidance to USD135bn, keeping AI investment returns in focus. Meanwhile, Tesla's weaker profits highlight uneven corporate earnings, while Thursday's results from Honeywell (HON), Lockheed Martin (LMT), Procter & Gamble (PG) and Western Digital (WDC) could influence market direction.

MY: The FBM KLCI may trade firmer, tracking Wall Street's tech-led rally, although persistent foreign selling and geopolitical uncertainty could temper gains. Stock-wise, we favour FRONTKN for its exposure to sustained semiconductor demand, with 2QFY26 revenue rising 19.5% YoY to RM186.9m and net profit increasing 42.5% to RM47.7m. Meanwhile, WPRTS reported a 26.4% YoY increase in 3QFY26 net profit to RM342.6m on revenue of RM1.07bn, supported by higher tariffs and stronger value-added services revenue. Management expects annual container throughput to at least match last year's level, providing earnings visibility despite fluid operating conditions.