Market Review

MY: The local bourse closed lower, weighed down by losses in PBBANK (-4.0 sen) and MAYBANK (-14.0 sen). Nevertheless, market breadth remained positive, with 646 gainers outpacing 441 losers. Sector-wise, Technology (+3.17%) led the gains, driven by VITROX and UWC, while Financials (-0.70%) lagged the most.

US: Wall Street rallied on Wednesday following the Democrats' midterm election sweep. The Dow surged 3.0%, while the S&P 500 gained 1.6% and the Nasdaq rose 1.4%. However, AI data-centre stocks faced regulatory concerns, while clean-energy stocks rallied on policy optimism.

The Day Ahead

US: Wall Street may extend its post-election rally, although Democratic control of Congress could reshape policy priorities. Investors may reassess the implications for AI regulation and clean-energy incentives. Solar players such as First Solar (FSLR) could benefit from policy support, while data-centre operators IREN and Applied Digital (APLD) may face tighter scrutiny. Meanwhile, Microsoft (MSFT) and Amazon (AMZN) appear better positioned to navigate regulatory headwinds, supported by their scale and cash generation.

MY: The FBM KLCI may draw support from Wall Street's strong rebound, with attention turning to BNM's OPR decision at 3pm. Eight of nine economists expect the rate to remain unchanged at 2.75%. On the corporate front, Kee Ming (KEEMING) secured a RM44.17m electrical engineering subcontract for a Puncak Alam hyperscale data centre, scheduled for completion by July 2027. Sunway Construction (SUNCON) secured RM920.8m in additional MEP fit-out works for a Johor data centre, lifting its FY26 new orders to RM8.06bn and outstanding order book to RM11.7bn. Meanwhile, Binastra (BNASTRA) secured a RM303.8m automated warehouse contract in Klang, expanding its exposure to specialised industrial infrastructure.