KUALA LUMPUR: The FBM KCLCI moved cautiously higher from the previous day's close in anticipation of the release of the country's quarterly economic report.
This comes amid a sell-off in tech and AI-related stocks in global markets, as investors fretted over AI overcapacity. US markets fell overnight following a higher capex guidance issued by Taiwan Semiconductor Manufacturing Co and a delay in Alphabet's AI model launch.
Apex Securities noted that the decline came despite a broader earnings season on Wall Street, with over 87% of reporting S&P500 companies beating estimates.
"This suggests investors are reading this as a capex overbuild risk rather than simple profit-taking, echoing the same AI-overcapacity fears that have resurfaced repeatedly in recent weeks," it said in its market outlook.
In Malaysia, the release of the country's 2Q gross domestic product, anticipated to be above 4%, at noon is expected to provide a near-term positive boost, although Apex said the gains are likely to stay narrow and rotation-driven rather than broad-based, given the fresh bout of weakness in global tech and semiconductor names.
"We'd stay cautiously positive, but avoid chasing strength, given the string of event risks this week," said the research firm.
The FBM KLCI was up 2.09 points to 1,724.28 at 9.15am, as traders remained subdued ahead of the release of the quarterly economic report.
IOI Properties jumped nine sen to RM3.98, PETRONAS Dagangan gained 12 sen to RM19.54 and CIMB rose five sen to RM7.75. SD Guthrie maintained its uptrend, rising five sen to RM6.75. Nestle, meanwhile, dropped RM1.40 to RM91.60.
There was strong buying interest in Padini, which surged 21 sen to RM1.63, after it announced the Malaysian Anti-Corruption Commission had released all its banks accounts after a probe into its vendors.