Malaysia's benchmark Kuala Lumpur Composite Index is expected to trade sideways in 3Q as economic growth moderates following a strong expansion in 1H, Kenanga Investment Bank analyst Peter Kong and his team say in a note. They expect investors to rotate into banks and consumer stocks, supported by stronger dividend visibility and the government's targeted fiscal assistance. They also expects gains in the stock index later in the year thanks to the government's market-reform initiatives and an expansionary 2027 budget. Kenanga maintains its KLCI end-2026 target at 1770, favoring banking, plantation, consumer, renewable energy and construction sectors. The KLCI is 0.3% higher at 1684.68. (yingxian.wong@wsj.com)