Market Review

MY: The local bourse ended lower amid a broad market correction sparked by Nvidia’s leadership uncertainty, weighed down by GAMUDA and YTLPOWR, with 799 losers outpacing 318 gainers. Sector-wise, Plantation (+2.19%) outperformed, led by SDG and UTDPLT, while Construction (-3.55%) was the worst-performing sector.

US: Wall Street ended lower on Thursday, with the Nasdaq down 0.39%, Dow 0.36% and S&P 500 0.35%, weighed down by materials, industrials and healthcare stocks. Nvidia fell 4.34% amid concerns over CEO Jensen Huang’s resignation, while gains in AMD, Broadcom, Chevron and Cisco helped limit losses.

The Day Ahead

US: Despite Nvidia’s 4.3% decline following CEO Jensen Huang’s resignation, upbeat after-hours guidance from Cisco (CSCO) and Applied Materials (AMAT), driven by strong AI demand, could cushion market sentiment. Investors will track Friday’s PPI data as the US 10-year Treasury yield rises to 5.13%. Stock-wise, we see long-term value in Nvidia (NVDA), as Huang’s departure poses leadership risks rather than signalling weaker AI demand, presenting gradual accumulation opportunities. Meanwhile, ATI (ATI) could extend gains after targeting 10–12% revenue CAGR through 2029 and adjusted free cash flow of US$1.25bn, more than double 2026 levels. Lastly, Applied Materials’ upbeat outlook could benefit Lam Research (LRCX) and KLA (KLAC), while Cisco’s AI networking strength could support Arista Networks (ANET).

MY: Tracking Wall Street’s overnight sell-off, we expect the local bourse to remain under pressure today. Nevertheless, ahead of year-end festivities and Chinese New Year, buying interest could emerge in brewery stocks HEIM and CARLSBG amid stronger seasonal beer demand. Meanwhile, rebounding CPO prices could present trading opportunities in plantation counters KLK, SDG and JPG. Lastly, we favour 5E Resources (5ER), supported by its newly operational Pasir Gudang facility, which has expanded annual treatment and recycling capacity from 282k tonnes to over 500k tonnes.