MONEY MASTER

Malaysian equities opened stronger, with the  FBM KLCI  climbing as much as  0.8% to 1,697 , driven by gains in banking and technology stocks. However,  falling oil prices dragged energy counters lower , highlighting sector divergence. Banks and Tech Lead the Market Market momentum was supported by: CIMB Group Holdings  rising  over 3% Malaysian Pacific Industries  surging  7% Renewed optimism in  AI and growth sectors , following strong global tech sentiment and the ripple effects from the  SpaceX-driven market excitement . Oil Drop Hits Energy Stocks Energy counters underperformed as oil prices declined after progress in US-Iran peace talks: Dialog Group  fell  over 5% Stocks rose because lower oil prices reduce inflation and Fed risks , but this simultaneously pressures  energy sector earnings . Macro Risks Cap Upside Despite the rebound, analysts see  limited upside  for the KLCI: Resistance expected around...

Global investors are  rotating back into Chinese equities , with April inflows hitting their highest level in months as sentiment improves on the back of  AI-driven optimism and stabilising geopolitical concerns . Strong Foreign Inflows Signal Renewed Interest Foreign investors poured approximately  200 billion yuan (US$29 billion)  into mainland equities in April, which is the  largest inflow since January . The data suggests a  clear rebound in overseas appetite , following earlier outflows triggered by the Iran war. Proxy Data Highlights Capital Movement With limited official disclosure on direct flows, analysts rely on  cross-border investment balance data  to estimate foreign participation. This method strips out: Bond flows Trading link transactions Institutional reallocations Leaving a  reliable proxy for foreign equity inflows into China . AI Rally Drives Market Performance The rebound in flows coincided with a strong equity rally: CS...

Singapore shares opened higher on Thursday, supported by  strong global tech momentum , even as mixed corporate earnings and policy developments remain in focus. STI Rises on Positive Global Cues The  FTSE Straits Times Index  climbed  0.43% to 4,948.49  in early trade. Market breadth was positive: Advancers: 127 Decliners: 52 The gains track strong momentum from Wall Street. Wall Street Hits Record Highs on AI Optimism US equities surged to fresh highs: S&P 500   +1.46% Nasdaq Composite   +2.03% Dow Jones Industrial Average   +1.24% The rally was driven by: AI demand acceleration Optimism over a potential  US-Iran peace deal Advanced Micro Devices  surged  19% , while broader chip stocks extended gains, reinforcing the  AI investment cycle . Singapore Strengthens Financial Credibility Singapore received the  highest rating  from the  Financial Action Task Force , despite past money laundering issues. Reinfor...

Simple Summary Chinese tech stocks have fallen 20% from their October high Hang Seng Tech Index dropped as much as 3.4%  in the latest session Tax hike fears and weak sentiment  are weighing on the sector Global AI valuation concerns  added to the selloff What’s Happening A key gauge of Chinese technology shares extended its decline on Tuesday, with the  Hang Seng Tech Index  slipping into  bear-market territory , down about  20% from its October peak . Losses were led by heavyweight names: Kuaishou Technology Tencent Holdings Alibaba Group Holding The index reversed earlier gains as selling accelerated through the session. Why Investors Are Selling Several factors are pressuring sentiment: Policy worries:  Investors fear Beijing may  raise value-added tax (VAT) on internet services firms , after recently targeting telecom companies. Global tech jitters:  Renewed doubts over whether  AI giants can justify heavy spending and high val...

Malaysia is entering 2026 with  solid economic visibility , backed by stable monetary policy, resilient domestic demand, and continued strength in the technology and semiconductor space. According to Maybank Investment Bank,  Malaysia’s GDP is expected to grow between 4.3% and 4.5% in 2026 , even as global growth moderates to around 2.8%. This resilience is driven by  strong investment activity, AI-related capex, and healthy MSME contributions , which continue to support employment and productivity. On the policy front,  Overnight Policy Rate (OPR) is expected to remain unchanged at 2.75% , providing a supportive environment for consumption and business expansion. While manufacturing faces tariff-related pressures, the  services sector continues to act as a key buffer  for overall growth. The  ringgit outlook is improving , supported by Malaysia’s strategic position in the global semiconductor supply chain. The currency is forecast to trade around...

Taiwan Semiconductor Manufacturing Company  (TSMC)  will report its  Q4 earnings on January 15 , taking center stage as the most critical “pick-and-shovel” play in the global AI boom. With AI chip demand accelerating and expectations running high, investors are less focused on headline numbers and more on  forward guidance, capacity expansion, and long-term AI visibility . Options Market: Caution Ahead of Earnings The derivatives market is signalling  defensive positioning  into the print: Put/Call ratio:   1.64  on open interest of 1.76 million contracts Implied volatility:   43.33% , well above historical volatility of 31.25% IV Percentile:   67% , indicating options are moderately expensive This suggests institutions are  hedging against downside risk , even if results come in strong — a sign that expectations for guidance may be difficult to exceed. Q4 Financial Expectations (Consensus) Revenue US$32.38bn  (+20% YoY, -2% Qo...

  Key Takeaways Seagate (STX)  and  SK Hynix (000660 KS)  both delivered  strong quarterly results , underscoring persistent strength in the global  memory and storage cycle . AI infrastructure demand  continues to be the single largest driver of profitability across  HDD, DRAM, and NAND  segments. Analysts see  sustained pricing power and supply discipline  carrying into 2026, extending the current  semiconductor supercycle . Seagate (STX US): Solid Quarter Validates HDD Rebound Fiscal Q1 FY26 (September Quarter) Metric Result YoY Change Consensus Revenue US$2.63B +21% US$2.55B Non-GAAP Net Income US$583M +73% — EPS US$2.61 +69% US$2.39 Gross Margin 40.1% Flat QoQ — Outlook (Q2 FY26): Revenue guide of  ~US$2.7B (+16% YoY)  — slightly ahead of consensus. Non-GAAP operating margin expected to rise to  ~30% , supported by  pricing gains and cost efficiencies . Strategic Highlights: Seagate’s  HAMR (Heat-A...

Taiwan Semiconductor Manufacturing Co. (TSMC)  just delivered a blowout  39% surge in revenue for Q2 , exceeding analyst forecasts and reinforcing its position as a  cornerstone of the AI boom .  Q2 Highlights: Revenue:  NT$934 billion (≈US$32 billion), beating the NT$928 billion analyst consensus. Sales Drivers:  Strong demand from  Nvidia  and  Apple  for high-performance chips powering AI and mobile devices. Guidance:  TSMC is on track to hit the high end of its  US$29.2 billion sales forecast  for the quarter. What’s Fueling the Surge? The generative AI gold rush, led by  Nvidia’s $4 trillion milestone , continues to lift chipmakers like TSMC, who supply the vital infrastructure for AI training and deployment. CEO C.C. Wei  confirmed that  AI chip demand still exceeds supply , and reiterated that TSMC's  2025 sales  are expected to grow in the  mid-20% range (USD terms) . Massive Investmen...

In a significant move aimed at curbing technology leakage to China, the US is preparing to  restrict shipments of advanced AI chips  to Malaysia and Thailand, escalating trade and security scrutiny in Southeast Asia. The planned measure, spearheaded by the  Commerce Department , is part of a broader strategy by the Trump administration to tighten controls over semiconductor flows amid suspicions of  smuggling and indirect transfers to China . Key Points: The draft rule would  limit the export of Nvidia’s AI chips  and similar products to Malaysia and Thailand. These two countries have become  key hubs for global semiconductor assembly and data infrastructure , especially with the rise of AI cloud computing. The regulation will  rescind certain global curbs from the previous AI diffusion rule , but will  retain China-focused chip restrictions  alongside measures for 40+ other countries deemed high-risk. Companies from the US and allied co...

Global equities sold off sharply and tech stocks were hit hardest on Thursday as U.S. President Donald Trump unveiled sweeping new tariffs that far exceeded market expectations—deepening fears of a global trade disruption and an economic slowdown. Market Reaction Asset Class Move Nasdaq Futures -4.0% S&P 500 Futures -3.3% FTSE Futures -1.8% Gold Hit record above  US$3,160/oz Oil (Brent) -3%, trading near  US$72.56 10-Yr Treasury Yields dropped  14 bps  to 4.04% (5-month low) Nikkei (Japan) -3.9%, lowest in 8 months Kospi (South Korea) -2.0% Vietnam ETF -8.0% (after-hours) Apple (AAPL) -7.0% in after-hours;  US$760B wiped from tech What Triggered the Selloff? Trump rolled out a  baseline 10% tariff  on all imports, with  much higher rates  on key U.S. trade partners: China: 54% Vietnam: 46% Japan: 24% South Korea: 25% EU: 20% China and Taiwan  were hardest hit due to deep exposure in  tech supply chains . Trump also  closed ...

Malaysia has emerged as a leading data centre hub in Southeast Asia, driven by favorable policies, substantial investments, and a focus on digital transformation. Key Growth Drivers Regional Demand and Spillover: The SEA-5 markets (Malaysia, Indonesia, Thailand, Philippines, Vietnam) recorded a 70% CAGR in data centre supply (2018-2023). Malaysia benefited from Singapore's temporary moratorium on data centres (2019-2022), attracting spillover investments. Significant Investments: Over RM99 billion (~US$21.7 billion) in data centre investments announced in the past two years, with RM149 billion in the pipeline. Major players like AWS , Google , and Microsoft have committed billions to cloud regions and data centre projects in Malaysia. Strategic Government Initiatives: MIDA and MDEC: Established the Digital Investment Office to streamline investments. Programs like MyGovCloud and Malaysia Digital enhance the digital ecosystem. Discussions around a Johor-Singapore Special Ec...

Nvidia CEO Jensen Huang expressed confidence that global collaboration in science and technology will persist, even amid potential tighter export controls from the incoming Trump administration. Huang on Global Cooperation Despite the Trump administration’s previous restrictions on exporting US technology to China, Huang believes international collaboration remains essential. “Open science and global cooperation across math and science have been the foundation of societal and scientific advancements for a very long time,” Huang stated during a media session in Hong Kong. He emphasized Nvidia's commitment to balancing compliance with laws and policies while continuing to advance technology and serve customers globally. The Age of AI During a speech at the Hong Kong University of Science and Technology (HKUST) , Huang declared, “The age of AI has started — a new computing era that will impact every industry and every field of science.” Highlighting Nvidia’s innovations, he describe...