Market Review

MY: Amid heightened Middle East tensions, the local bourse traded cautiously, with negative market breadth as 659 losers outpaced 415 gainers. However, the FBM KLCI was supported by TENAGA and PCHEM. Sector-wise, Energy (+1.29%) outperformed, while Technology (-1.85%) lagged.

US: Wall Street slid as earnings revived AI spending concerns, triggering a technology sell-off. The Nasdaq tumbled 2.6%, its steepest decline since June, while the S&P 500 fell 1.2% and the Dow ended flat. Semiconductor weakness and Meta's elevated capital expenditure weighed on sentiment, alongside rising oil prices.

The Day Ahead

US: Wall Street may remain cautious as investors reassess whether AI monetisation can justify rising infrastructure spending, while renewed Middle East tensions keep energy supply risks in focus. Meta's elevated capex outlook and Tesla's profitability and robotaxi execution have sharpened scrutiny of investment returns. In the energy sector, Chevron (CVX) offers upstream exposure to firmer crude prices, while Valero (VLO) provides exposure to stronger refining margins after reporting record third-quarter earnings amid supply disruptions.

MY: The FBM KLCI may trade mixed amid global technology uncertainty, with domestic contract wins and earnings providing stock-specific opportunities. JTGROUP warrants attention after securing a 55% participation, equivalent to approximately RM312.5m, in a consortium's RM568.2m TNB substation contract in Paka, strengthening its order-book visibility. Meanwhile, FOODIE may attract interest after FY26 net profit surged 67.7% YoY to RM15.7m on 49.6% revenue growth to RM55.5m, with total dividends of 1.53 sen per share. Separately, elevated energy prices may keep DIALOG and GASMSIA on investors' radar, although earnings implications differ given DIALOG's terminal and project exposure and GASMSIA's regulated gas distribution operations.