Market Review

MY: The local bourse finished on a weaker note, dragged down by losses in YTLPOWR (-32.0 sen) and PBBANK (-22.0 sen). Market breadth remained negative, with 745 losers vs. 395 gainers. Sector-wise, Construction (+1.08%) outperformed, led by SUNCON and GAMUDA, while Energy (-1.91%) was the worst performer.

US: Wall Street retreated on Tuesday as hotter-than-expected CPI data and hawkish Fed comments fuelled December rate-hike expectations. The Nasdaq fell 0.7%, S&P 500 declined 0.4% and Dow slipped 0.3%. Treasury yields and the dollar surged, while investors also monitored developments surrounding Anthropic's upcoming IPO.

The Day Ahead

US: Following hotter-than-expected October CPI and Fed Governor Waller’s openness to a half-point hike, which pushed the 10-year yield to 5%, we expect Wall Street to remain cautious. Stock-wise, we favour Emerson Electric (EMR), backed by its USD8.2bn backlog and FY27 adjusted EPS guidance of USD7.25. Meanwhile, Microsoft (MSFT) may offer an entry point after its pullback following Anthropic’s Excel-rival launch, supported by its planned participation in Anthropic’s USD26bn IPO-linked placement. Lastly, traders could look at NXP Semiconductors (NXPI), backed by its USD5bn buyback authorisation and Volkswagen partnership.

MY: Tracking overnight Wall Street losses, we expect the local bourse to trade softer today. Nevertheless, investors may look at 5E Resources (5ER), supported by (i) its new Pasir Gudang facility, expected to boost annual treatment and recycling capacity by 80% from 282k to 509k tonnes, (ii) potential waste treatment demand from the government's B15 biodiesel push, and (iii) tightening environmental and ESG regulations. Meanwhile, heightened cybersecurity concerns following suspected attacks on financial and government infrastructure could bode well for LGMS (M+Global TP: RM 0.70), while power infrastructure player SKACAP (M+Global TP: RM 0.66) makes its ACE Market debut today.