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Market Daily Report: Bursa Malaysia Ends Nearly Flat As Construction Stocks Attract Buying

 KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.

Why Nvidia's One Sentence Helped Lift Global AI Stocks

Key Takeaways A single statement from Nvidia "our road map is intact" helped restore confidence across global AI stocks. Technology shares rebounded , with the Nasdaq 100 rising 1.3% as investors viewed Nvidia's comments as reassurance that AI spending remains on track. The AI investment story is shifting from valuation concerns to earnings sustainability. Investors are closely watching upcoming earnings from Samsung and AI infrastructure companies  for confirmation that demand remains strong. The next phase of the AI rally will depend less on hype and more on continued capital spending and profit growth. Market Insight Sometimes, a single sentence can move billions of dollars. That was exactly what happened after  Nvidia  reassured investors that  "our road map is intact,"  responding to concerns over reports of delays involving AI server deployments. The comment quickly eased fears that the AI infrastructure boom might be slowing. Technology stocks rebounded a...

Why Record Earnings Weren't Enough to Save Samsung's Stock

Key Takeaways Samsung delivered record quarterly earnings, yet its shares fell nearly 7% , showing that strong results alone are no longer enough to impress investors. Markets have already priced in the AI boom , shifting focus from headline earnings to whether exceptional profits can be sustained. Memory chip prices remain elevated , with shortages expected to continue through 2027, supporting near-term profitability. Investors are now asking what comes next , including pricing power, capacity expansion and long-term free cash flow. The AI story remains intact, but expectations have become much harder to beat. Market Insight When a company reports a  19-fold increase in operating profit , most investors would expect its share price to surge. Instead,  Samsung Electronics  fell as much as  6.8%  after announcing preliminary second-quarter results that exceeded market expectations. The reaction highlights an important investing lesson:  stocks move on expect...

Malaysia Highlights: Maybank Turns Bullish on Tech as AI Rally Lifts Global Markets

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 return...

Micron Isn’t Just Reporting Earnings It’s Driving the Entire Market

Micron’s upcoming earnings are becoming a key market event, with AI-driven demand pushing profit growth close to 1,000%. Its performance is now so significant that it directly impacts overall S&P 500 earnings growth. This is no longer just a company story, Micron has become a major driver of market earnings. What’s Really Happening The surge in Micron’s profits is not coming from volume alone, it’s coming from pricing power. Tight memory supply is pushing prices sharply higher AI demand (especially high-bandwidth memory) is accelerating Much of the revenue growth is flowing straight to profit That’s why earnings are exploding at an unusually fast pace. More importantly, without Micron (and Nvidia), overall S&P 500 earnings growth would drop significantly showing how concentrated the market’s growth has become. Why This Matters This tells us something deeper about the current market: AI is not just a theme, it is dominating earnings growth A small group of companies is driving a...

Sunway Rises on Earnings Boost, but Cost Pressures Cloud Outlook

Sunway shares edged higher following a strong first-quarter performance, though analysts remain cautious due to  rising cost pressures and limited near-term catalysts . Share Price Gains After Strong Headline Earnings Sunway’s stock rose  1.9% to RM5.34  in early trading, supported by: RM9.4 billion net profit  in 1QFY2026 8% revenue growth  to RM2.56 billion The earnings surge was largely driven by a  RM9.1 billion fair value gain  from the listing of  Sunway Healthcare . Core Growth Driven by Property and Construction Underlying fundamentals remain supported by: Strong  property sales momentum A sizeable  construction order book of RM8.2 billion Data centre projects accounting for ~64%  of outstanding jobs New contract wins of  RM3.6 billion in 1Q  already represent  60% of full-year targets , highlighting solid earnings visibility. Analysts Stay Cautious Despite Positive Outlook Consensus sentiment remains neutral:...

CIMB Profit Slips on Margin Pressure, But Stabilisation Signals Emerge

CIMB Group Holdings Bhd  reported a slight earnings dip in 1QFY2026, as margin pressure weighed on core income, though early signs of stabilisation are starting to appear. Summary CIMB’s net profit edged down to  RM1.92 billion (-2.9% YoY)  due to weaker net interest income, but  improving margins and stronger non-interest income signal a potential turnaround ahead . Key Highlights Net profit -2.9% YoY  to RM1.92 billion Net interest income -5%  (margin pressure) Non-interest income +11.9%  (trading & forex gains) ROE: 11.0% CASA ratio improved to 43.3% Gross impaired loans stable at 1.7% CET1 ratio strong at 14.3% Segment Performance Consumer banking:  -23% (higher provisions, lower margins) Commercial banking:  +38% (strong recoveries) Wholesale banking:  -10% (lower one-off income) Digital & funding:  +11.1% (boost from TNG Digital) Key drag: margin compression and higher provisions in consumer segment Early Signs of Stab...

Hong Leong Bank Profit Jumps 9% as Interest Income Holds Firm

Hong Leong Bank Bhd  posted stronger quarterly earnings, supported by steady interest income and lower taxes, showing resilience in a stable lending environment. Summary Hong Leong Bank’s 3QFY2026 net profit rose nearly  9% to RM1.03 billion , driven mainly by  lower taxation and improved net interest income , despite weaker non-interest income. Key Highlights Net profit +9% YoY  to RM1.03 billion Net interest income +5% Non-interest income -9% Net interest margin stable at 1.83% Gross loans +8.4% Gross impaired loans low at 0.6% No interim dividend declared What’s Driving Performance Stronger lending activity  supported income growth Lower tax expenses  boosted bottom line Stable  net interest margin (NIM)  reflects disciplined pricing Key driver: Core banking income remains solid despite softer fee-based income Strategy & Outlook Management focus: Branch transformation Strategic partnerships AI and digital banking expansion FY2026 targets: R...

PETRONAS Chemicals Rebounds, But Analysts Flag Limited Upside Ahead

Shares of  PETRONAS Chemicals  rose after a return to profitability in 1Q, though analysts remain  cautious on the sustainability of the recovery . Share Price Rises on Earnings Turnaround The stock gained  4.2% to RM5.68 , extending a strong rally of nearly  92% since late February . The rebound was driven by: Higher petrochemical prices Improved  product spreads Stronger  sales volumes However, these gains were largely supported by  supply disruptions linked to Middle East tensions , rather than structural demand recovery. Analysts Divided on Outlook Sentiment remains mixed among research houses: 9 ‘buy’ ,  9 ‘hold’ ,  1 ‘sell’  recommendation Average target price: RM6.08 (~7% upside) While earnings forecasts have been revised higher, many analysts maintain  neutral stances  due to lingering risks. Operational and Demand Risks Persist Key concerns highlighted by analysts include: Lower utilisation rates  expected in...

HSBC Profit Misses as War-Related Charges and UK Exposure Weigh on Earnings

HSBC Holdings Plc  reported a  first-quarter profit miss , as rising  credit costs and geopolitical risks  offset otherwise stable operating performance. Earnings Impacted by Rising Credit Charges HSBC posted: Pre-tax profit: US$9.4 billion  (vs  US$9.6 billion expected ) Expected credit losses: US$1.3 billion Key drivers of higher provisions included: US$400 million  tied to a  UK fraud-related exposure US$300 million  in additional allowances linked to  deteriorating economic outlook  from Middle East tensions This reflects growing pressure on banks from  credit risk and macro uncertainty . Geopolitical Risks Hit Growth Regions Although HSBC has no direct exposure to Iran, the  spillover effects of the conflict  are impacting: Middle East economies , a key growth region Global trade flows , where HSBC has significant exposure As one of the world’s largest trade-finance banks, HSBC is particularly sensitive to  ...

Advantest Slides as Outlook Disappoints Despite Strong AI Demand

Advantest Corp.  shares fell sharply after the company issued a  weaker-than-expected outlook , highlighting ongoing  capacity constraints  despite booming demand from the AI sector. Stock Drops on Soft Guidance Advantest shares declined as much as  6.9% , marking the  largest intraday fall in nearly a month . The pullback comes after: The stock had already surged  over 50% year-to-date Investors had priced in  strong AI-driven growth expectations Outlook Miss Overshadows Strong Results The company guided for: Operating income: ¥627.5 billion , below Analyst expectations: ¥650.8 billion This weaker outlook overshadowed a strong quarterly performance: Operating income surged 139% YoY Profit margin reached 47% AI Demand Remains Strong, But Supply Is the Constraint Advantest benefits from its key role in the AI supply chain, supplying testing equipment for companies like  Nvidia . Demand drivers include: Rising complexity of AI chips Increased n...

Netflix Slides 8% After Weak Outlook Overshadows Strong Q1 Results

Netflix  shares fell more than  8% in after-hours trading , as a  disappointing second-quarter outlook  and leadership changes outweighed otherwise solid first-quarter results. Weak Guidance Sparks Sell-Off Netflix forecast  Q2 earnings of US$0.78 per share , below analyst expectations of  US$0.84 , while revenue is projected at  US$12.57 billion , missing the  US$12.64 billion consensus . The weaker guidance raised concerns over  near-term growth momentum , triggering a sharp negative market reaction. Strong Q1 Performance Fails to Impress For the first quarter: Revenue rose 16% YoY to US$12.25 billion  (above estimates) Earnings surged 86% to US$1.23 per share However, earnings were boosted by a  US$2.8 billion one-off termination fee , reducing the quality of underlying growth. Operating margin improved to  32.3% , but still came in  below expectations (32.4%) , further dampening sentiment. Rising Costs and Strategic Sh...

China’s Big Banks Post Weak Profit Growth as Margin Pressure Bites

China’s state-owned lenders delivered  muted earnings growth in 2025 , highlighting ongoing pressure from  policy-driven lending and shrinking interest margins . Profit Growth Slows Across Major Lenders Agricultural Bank of China  reported  net profit growth of 3.2% to 291 billion yuan , while  Bank of China  posted a weaker  2.2% increase . Similar trends were seen across peers, including  Industrial and Commercial Bank of China  and  China Construction Bank , reflecting  sector-wide earnings constraints . Despite the modest growth, total industry profits still reached  2.38 trillion yuan , up  2.3% year-on-year . Margin Compression Remains Key Headwind The banking sector continues to face a  “double squeeze” : Record-low net interest margins (NIMs) Policy pressure to support economic growth through lending This has limited profitability even as loan volumes expand. Asset Quality Shows Early Signs of Stress While hea...

Nvidia’s US$78B Forecast Fails to Wow Investors as AI Overheating Fears Linger

Quick Summary Nvidia guides Q1 sales at  US$78 billion , above consensus Shares  fell ~1%  despite strong numbers China revenue excluded from outlook AI spending sustainability still questioned Upbeat Forecast, Lukewarm Reaction Nvidia Corp  projected fiscal Q1 revenue of  US$78 billion , beating Wall Street’s average estimate of US$72.8 billion. However, some bullish analysts had expected numbers closer to  US$80 billion  — and the stock slipped about  1%  after the announcement. Key point: Nvidia is still growing fast — but expectations are even higher. Q4 Results Still Massive For the quarter ended Jan 25: Revenue surged  73% to US$68.1 billion EPS:  US$1.62  (vs US$1.53 expected) Adjusted gross margin:  75.2% Data-centre revenue:  US$62.3 billion  (above estimates) Nvidia remains the dominant supplier of AI accelerator chips powering global data centres. China: Still a Big Unknown The company: Excluded  ...

Mr DIY Faces Store Saturation Concerns Despite 11% Profit Growth

Quick Summary FY2025 core net profit up 11% to RM633m Same-store sales growth (SSSG) still weak at  -2% for full year Analysts downgrade on  store saturation and cannibalisation risks YTD share price up 22%, limiting upside Strong Earnings, But Growth Questions Emerge Shares of  Mr DIY Group (M) Bhd  are facing more cautious analyst views, even after delivering solid FY2025 earnings. FY2025 highlights: Core net profit:  RM633 million ( +11% YoY ) Gross margin expansion driven by: Lower procurement costs Stronger ringgit However: Full-year SSSG remained negative at -2% 4QFY2025 SSSG turned positive at  +1.4% , helped by festive demand and promotions Key issue:  Organic growth remains soft despite margin strength. Why Analysts Are Turning Cautious 1️⃣ Store Saturation Risk The group plans to open  155 new stores in FY2026 , raising concerns of: Sales cannibalisation Slower sales per square foot Market nearing maturity 2️⃣ Valuation No Longer Cheap S...