Malacca Securities Picks Gamuda, Ambest as KLCI Rebounds

The FBM KLCI closed cautiously last Friday, dragged by losses in NESTLE and PETDAG, even as Construction stocks jumped 1.68% on gains in IJM and KERJAYA.

What Sparked the US-China Trade Optimism

Washington and Beijing agreed to favourable tariff treatment covering USD30 billion of non-sensitive goods in each direction and extended their trade truce by two months, according to Malacca Securities Research.

The research house noted this could lift sentiment for agriculture-linked US names such as Deere & Company and Archer-Daniels-Midland, while Nvidia stays in focus ahead of a separate US-China AI dialogue scheduled for November.

On Wall Street last Friday, the Dow, S&P 500 and Nasdaq rose 0.9%, 0.5% and 0.5% respectively, as Brent crude fell 2.6% to USD97.6 a barrel on reports of possible US-Iran de-escalation talks.

Why Gamuda and Ambest Are on Malacca Securities’ Radar

Malacca Securities pointed to Gamuda’s RM62.5bn outstanding order book, describing it as a record level equivalent to roughly 3.9x the group’s FY25 revenue.

For AMBEST, the research house’s rationale centres on rising demand for precision engineering components tied to the global semiconductor upcycle.

Both stock picks come as investors position ahead of Budget 2027, which will be tabled on 9 October, with the research house flagging Construction, Utilities, Technology and Consumer as sectors likely to attract policy-driven interest.

The Valuation and Sector Backdrop

Malacca Securities’ preference for Gamuda ties directly to order book visibility rather than a fresh earnings re-rating, framing the RM62.5bn figure as the key support for near-term revenue certainty.

For Ambest, the valuation angle rests on sector tailwinds from the semiconductor cycle rather than a specific multiple disclosed in this note.

Sector-wise last Friday, Construction outperformed at +1.68% while Health Care lagged, down 0.74%, reflecting rotation into infrastructure-linked names ahead of the budget.

Risks Flagged by the Research House

Malacca Securities cautioned that gains on Wall Street and regionally could be capped by renewed US-Iran tensions, after President Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz.

This keeps geopolitical and oil-price risk elevated even as the US-China trade truce extension offers near-term relief.

Nvidia’s own guidance assumes no Data Center compute revenue from China, a reminder that the AI dialogue in November remains an unresolved swing factor for tech sentiment.

What This Means for Retail Investors

Retail investors tracking the FBM KLCI can note that Malacca Securities links today’s expected rebound to both the US-China summit outcome and Friday’s positive Wall Street close.

The Budget 2027 tabling on 9 October is flagged as a separate catalyst, with Construction, Utilities, Technology and Consumer sectors named as areas the research house is watching for potential beneficiaries.

Gamuda’s RM62.5bn order book and Ambest’s semiconductor exposure are presented by Malacca Securities as thematic ideas tied to these catalysts, not as guaranteed outcomes.

Key Takeaways

• Malacca Securities expects the FBM KLCI to rebound, tracking Wall Street’s Friday gains and the US-China trade truce extension.
• The US and China agreed to favourable tariff treatment on USD30 billion of goods each way, with the truce extended by two months.
• Gamuda’s outstanding order book stands at a record RM62.5bn, equal to about 3.9x FY25 revenue, according to Malacca Securities.
• Ambest is highlighted for exposure to precision engineering demand from the global semiconductor upcycle.
• Budget 2027, due 9 October, is seen by the research house as a catalyst for Construction, Utilities, Technology and Consumer sectors.

Frequently Asked Questions

What is Gamuda’s current order book according to Malacca Securities?

Malacca Securities states Gamuda holds a record outstanding order book of RM62.5bn, equivalent to approximately 3.9x its FY25 revenue. The research house cites this as the key support behind its favourable view on the stock.

Why does Malacca Securities favour Ambest right now?

Malacca Securities points to Ambest’s exposure to rising demand for precision engineering components amid the global semiconductor upcycle. The research house did not disclose a specific target price for Ambest in this report.

How does the US-China summit affect Bursa Malaysia stocks?

Malacca Securities expects the FBM KLCI to rebound today after the US-China summit produced favourable tariff treatment on USD30 billion of goods in each direction and a two-month trade truce extension. The research house also flagged Construction, Utilities, Technology and Consumer as sectors to watch ahead of Budget 2027 on 9 October.

What sectors led and lagged on Bursa Malaysia last Friday?

Construction was the top sector, up 1.68%, led by IJM and KERJAYA, while Health Care lagged with a 0.74% decline, according to Malacca Securities’ market review. NESTLE and PETDAG were named as the biggest drags on the broader index.

What risks could derail the current market optimism?

Malacca Securities warned that renewed US-Iran tensions, following President Trump’s rejection of Iran’s proposal to reopen the Strait of Hormuz, could cap further gains. The research house also noted Nvidia’s guidance assumes zero Data Center compute revenue from China ahead of November’s US-China AI dialogue.

The full report, including further detail on Malacca Securities’ coverage, is available via M+ Online.

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.

Want access to full M+ Online research reports and AI stock analysis? Contact Dexter Chia, AI-Driven Remisier at Malacca Securities Sdn Bhd. M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?