MBSB Still Cautiously Optimistic on Malaysian Equities in 2H — Market Talk

MBSB Research remains optimistic but cautious with regard to Malaysia's equity market outlook in 2H, it says in a note. The market is likely to be supported by resilient economic growth, stronger corporate earnings and attractive valuations. However, potential Fed rate hikes, Middle East tensions, a weaker ringgit and foreign fund outflows could temper gains, it reckons. MBSB cuts its end-2026 target for Malaysia's benchmark Kuala Lumpur Composite Index to 1770 from 1800 previously. It recommends a balanced stock-picking approach, favoring sectors with defensive earnings or domestic growth catalysts, including utilities, consumer, banking, telecommunications, construction and selected technology stocks. It also sees renewed interest in themes such as government's tourism campaign, renewable energy, construction, data-center investments and resilient consumer spending once markets absorb the Fed outlook. (yingxian.wong@wsj.com)

Corrections & Amplifications

This market talk item was corrected at 0258 GMT to reflect MBSB Still Cautiously Optimistic on Malaysian Equities in 2H. The original version misspelled "MBSB" and "Malaysian" in the headline.

(02:56 GMT) Correction to MBSB Malaysian Equities Item

MBSB Still Cautiously Optimistic on Malaysian Equities in 2H. "MSBC Still Cautiously Optimistic on Mlaaysian Equities in 2H — Market Talk," at 0247 GMT, misspelled "MBSB" and "Malaysian" in the headline.