Market Review

MY: The local bourse closed higher following BNM decision to hold interest rates. However, market breadth was negative, with 723 losers outpacing 497 gainers. The benchmark was lifted by PBBANK and MAYBANK. Sector-wise, Financials (+2.92%) led the gains, while Technology (-4.27%) was the weakest performer.

US: Wall Street suffered its worst day since April 2025 on Thursday as technology stocks tumbled. The Nasdaq, S&P 500 and Dow plunged 5.5%, 4.4% and 3.4%, respectively, amid fears of AI regulation. Nvidia, AMD and Qualcomm led the chip sell-off, while low jobless claims pointed to continued labour-market resilience.

The Day Ahead

US: Wall Street may remain cautious as investors reassess AI infrastructure returns and potential regulatory constraints. Renewed tanker attacks and uncertainty over US–Iran negotiations lifted Brent to USD98.29/bbl, reviving inflation concerns and the risk of further energy-market volatility. Defensive names such as Walmart (WMT), Procter & Gamble (PG) and Johnson & Johnson (JNJ) could attract interest as investors seek more resilient earnings. Friday’s US employment report will be closely watched for clues on labour-market conditions and the Federal Reserve’s policy outlook.

MY: The FBM KLCI may face selling pressure after Wall Street’s sharp decline, although BNM’s decision to maintain the OPR at 2.75% could offer support. VITROX posted its strongest quarterly results since listing, with 3QFY26 revenue up 112% YoY to RM485.1m and net profit rising 242% to RM118.6m, driven by AI infrastructure and networking inspection demand. However, the semiconductor sell-off may weigh on sentiment. GCB may benefit from a recovery in cocoa grindings, up 29% YoY in Asia and 40% among Ivory Coast’s GEPEX members, alongside lower bean costs. KJTS also merits attention, with four 20-year cooling agreements in Thailand supporting recurring income being awarded in Sep-2026.