KUALA LUMPUR, June 30 (Bernama) -- Bursa Malaysia ended the first half of the 2026 trading year on a softer note, following a range-bound trading session as investors remained cautious amid the lack of fresh domestic catalysts. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said regional equities finished broadly higher, supported by stronger-than-expected business activity data from China and continued strength in technology stocks. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.85 points to 1,664.06 from Monday’s close of 1,665.91. The index opened 1.37 points higher at 1,667.28 and fluctuated between an intraday low of 1,661.80 and a high of 1,669.88 throughout the day. Market breadth was positive, with gainers outnumbering decliners 562 to 415, while 589 counters were unchanged, 1,124 untraded, and 79 suspended.
Key Takeaways
- Wall Street rallied to fresh highs, led by AI and Magnificent Seven stocks, with the Dow Jones setting another record close.
- Maybank Investment Bank upgraded Malaysia's technology sector to Positive, citing stronger semiconductor demand and improving order visibility.
- Bursa Malaysia eased 0.11%, reflecting sector rotation despite a stronger ringgit and improving outlook for technology stocks.
- ViTrox and ITMAX emerged as Maybank's preferred picks, while strong earnings and IPO demand highlighted continued strength across selected sectors.
- Technology and AI remain key investment themes, supporting Malaysia's semiconductor supply chain and export outlook.
Market Overview
Global investor sentiment strengthened after another robust session on Wall Street, where AI-related stocks reignited market momentum. The Dow Jones Industrial Average reached a new record closing high, while the Nasdaq Composite jumped more than 2% as investors returned to technology leaders and semiconductor-related names.
The rally was fuelled by gains across the Magnificent Seven, with Tesla, Alphabet, and Amazon leading advances. AI infrastructure plays also outperformed, as Cerebras, Corning, Applied Materials, and Western Digital posted double-digit gains, reinforcing optimism that AI spending remains resilient.
Malaysia Tech Outlook Improves
Despite the positive global backdrop, the FBM KLCI slipped 0.11% to 1,665.91, as investors continued rotating between sectors. The ringgit strengthened against the US dollar, reflecting improving currency sentiment.
A key catalyst for the local market came from Maybank Investment Bank, which upgraded Malaysia's technology sector to Positive from Neutral. The research house expects improving semiconductor demand, healthier customer order pipelines and sustained electronics exports to support earnings across the sector.
Among its preferred names, ViTrox and ITMAX stand out as companies well-positioned to benefit from the next phase of the semiconductor and digital infrastructure cycle.
Stocks in Focus
Corporate earnings continued to provide selective opportunities across Bursa Malaysia.
Crescendo delivered an exceptional first-quarter performance, with net profit surging 26-fold on stronger property sales and construction progress. The developer also unveiled RM252 million worth of upcoming projects.
Technology remained a dominant theme as SRKKAI attracted overwhelming investor demand, with its IPO oversubscribed 321 times, highlighting continued appetite for AI-related businesses.
Elsewhere, Petronas Chemicals received a rating upgrade from Hong Leong Investment Bank, Kuala Lumpur Kepong reported stronger plantation earnings on higher CPO prices, while HI Mobility benefited from continued infrastructure-related growth expectations. Kelington Group also drew attention after receiving a Technical Buy recommendation from AmBank.
Investment Outlook
The combination of a global AI-driven market rally and a more constructive outlook for Malaysia's semiconductor industry could improve investor sentiment toward local technology counters. While broader market performance may remain influenced by sector rotation and macroeconomic developments, technology, AI infrastructure and export-oriented manufacturers are likely to remain among the market's strongest themes in the coming quarters.
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