Oil Surge Tests Bursa as Data Centre Stocks Shine

Global Oil Spike Pushes Yields Higher, Markets Lower

Escalating tensions between the US and Iran around the Strait of Hormuz have pushed Brent crude to US$107.63 per barrel, triggering a broad selloff across Wall Street on Thursday. According to Malacca Securities Research, the oil spike has reinforced inflation concerns and lifted the US 10-year Treasury yield near the 5% mark, signalling that central banks are unlikely to pivot toward easier monetary policy soon.

The American stock market posted losses across the board: the S&P 500, Dow Jones and Nasdaq all fell 0.6% to 0.7% respectively. Meanwhile, August US producer prices rose 0.4% month-on-month, adding fresh fuel to inflation worries ahead of the critical CPI release. Malacca Securities expects Wall Street to remain in risk-off mode as crude stays above the US$100/bbl threshold.

Bursa Malaysia Treads Cautiously; Healthcare Outperforms

On home turf, the local bourse traded defensively as global headwinds weighed on investor sentiment. Healthcare stocks bucked the trend, posting a +7.02% sectoral gain led by TOPGLOV (+13.5 sen) and HARTA (+18.0 sen), while Consumer Products lagged with a -0.82% decline. Malacca Securities notes that elevated global yields continue to dampen risk appetite, leaving the FBM KLCI in a holding pattern.

The research house expects the benchmark index to remain choppy until clarity emerges on oil trajectories and US inflation dynamics, particularly ahead of upcoming CPI data that could signal whether the Federal Reserve is willing to cut rates in coming quarters.

Data Centre Plays Steal the Spotlight Amid Infrastructure Demand

Despite broader caution, Malacca Securities has identified persistent strength in the data-centre and power-infrastructure theme, with three stocks commanding attention. PEKAT secured RM57.2 million in new hyperscale data-centre subcontracts in Johor, bolstering its order book as cloud and AI infrastructure demand accelerates across Southeast Asia. YTLPOWR is supported by sequentially stronger 4QFY26 earnings and is advancing a proposed gigawatt-scale data-centre campus at Sedenak Tech Park, positioning itself as a cornerstone player in Malaysia’s energy-intensive digital infrastructure buildout.

JTGROUP remains well-positioned to capitalise on sustained power infrastructure spending, having landed a RM69.5 million TNB contract for a new 132/33kV GIS substation and 132kV overhead line in Tumpat, Kelantan, alongside a RM46.7 million underground cable subcontract. According to Malacca Securities, the combination of government push for digital transformation and corporate data-centre expansion provides a multi-year tailwind for these contractors.

US Beneficiaries of Higher Oil and Investment Yields

On the international stage, Malacca Securities highlights Exxon Mobil and Chevron as direct beneficiaries of crude prices remaining elevated. The research house also favours Chubb, noting that the insurer’s 2Q26 adjusted net investment income reached a record US$1.88 billion, up 11.4% year-on-year, with a robust 83.8% property and casualty combined ratio. Higher Treasury yields mechanically boost investment income for insurers with large fixed-income portfolios.

TD SYNNEX remains underpinned by record 2QFY26 results, while Twilio continues to benefit from 17% organic revenue growth and raised FY26 guidance, insulating technology beneficiaries from broader market malaise driven by macro uncertainty.

What This Means for Retail Investors

The confluence of elevated oil prices, sticky inflation and higher-for-longer interest rates is reshaping the investment landscape. Retail investors monitoring Bursa Malaysia face a bifurcated market: defensive, infrastructure-linked plays such as data-centre contractors are attracting capital, while cyclical sectors remain under pressure. Malacca Securities’ focus on the data-centre theme suggests that structural demand for digital infrastructure — driven by AI and hyperscale cloud buildout — may offer more durable returns than sectors vulnerable to interest rate sensitivity or oil-price volatility.

The FBM KLCI’s cautious tone does not preclude selective opportunities in companies with contracted revenue visibility, such as JTGROUP and PEKAT, which derive earnings from fixed-price infrastructure contracts awarded by state utilities and major cloud operators. Investors should monitor crude-oil levels, US Treasury yields and upcoming inflation data as key signposts for broader market direction.

Key Takeaways

• Brent crude spiked to US$107.63/bbl on US-Iran tensions, lifting the 10-year Treasury yield near 5% and triggering a 0.6–0.7% selloff across S&P 500, Dow and Nasdaq.
• Malacca Securities expects the FBM KLCI to trade cautiously as elevated global yields weigh on risk appetite, though data-centre infrastructure remains a bright spot.
• PEKAT, YTLPOWR and JTGROUP are positioned to benefit from sustained government and corporate investment in hyperscale data-centre and power infrastructure projects worth hundreds of millions of ringgit.
• Chubb’s investment income reached a record US$1.88 billion in 2Q26, demonstrating how higher yields mechanically support insurer profitability.
• Investors should monitor crude-oil levels, US inflation data and Treasury yields as key indicators of broader market direction and sector rotation opportunities.

Full Report: The complete Malacca Securities research note, titled Elevated Yields Keep Risk Appetite Muted, published 11 September 2026, is available on M+ Online at https://mplusonline.com/research-report/detail/1426.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.

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