Wall Street Rebound Lifts Bursa Malaysia, Eyes Turn to Budget 2027
The FBM KLCI closed marginally higher on Friday, riding a wave of positive sentiment from Wall Street where the Dow, S&P 500 and Nasdaq advanced by 0.5%, 0.8% and 1.2% respectively. According to Malacca Securities Research, a softer-than-expected September jobs report in the US dampened expectations of imminent Federal Reserve monetary policy tightening, creating a supportive backdrop for equities across borders.
Locally, the Technology sector led gains with a +2.32% jump, powered by semiconductor strength following Micron’s earnings beat and bullish outlook. The Energy sector was the only laggard, falling 0.24%, as investors rotated away from defensive plays into growth-linked equities.
HKB: Record Order Book Signals Infrastructure Momentum Ahead
HKB, the construction and infrastructure player, commands the research house’s attention ahead of Budget 2027. The company has achieved a record-high order book of RM851 million, which translates to approximately 6.8 times FY25 revenue—a healthy multiple that suggests sustained earnings visibility over the coming periods.
Malacca Securities noted that infrastructure-related initiatives in East Malaysia, expected to feature prominently in this Friday’s budget announcement, could unlock additional growth opportunities for HKB. The company’s strong forward order position leaves it well-positioned to capitalize on fresh government spending allocations.
AEMULUS: AI and Data-Centre Tailwinds Propel Order Book
AEMULUS, the ATE (Automated Test Equipment) designer and manufacturer, has pivoted sharply from underperformance. The company delivered an earnings turnaround in the third quarter of FY26, underpinned by robust demand from the AI, data-centre and automotive sectors—three industries riding structural growth megatrends.
The research house highlighted AEMULUS’s record order book of RM122 million, representing 1.5 times FY25 revenue. According to Malacca Securities, this order backlog reflects strong momentum across semiconductor and AI infrastructure end-markets, positioning the company to benefit from accelerating capex cycles in data-centre build-outs globally and locally.
Global Tech Drivers: Anthropic Deal and AI CPU Demand Ripple Effect
Malacca Securities also drew attention to international developments supporting the local technology ecosystem. Akamai Technologies signed an USD11.6 billion, seven-year agreement with Anthropic to support distributed CPU workloads—a signal of massive AI infrastructure investment in the pipeline. Additionally, Meta’s rollout of the Muse AI agent has heightened interest in data-centre CPU capabilities, potentially lifting demand for Intel’s Xeon 6 processors.
These international tailwinds are relevant for Malaysian ATE suppliers and semiconductor-exposed plays, as they signal sustained capex momentum in global data-centre infrastructure—a market AEMULUS serves directly through its testing solutions.
What This Means for Retail Investors
The convergence of three factors—strong local order books, imminent budget announcements, and global AI/data-centre capex cycles—creates a potentially supportive environment for infrastructure and technology equipment plays. Malacca Securities’ emphasis on Budget 2027 catalysts suggests investors should monitor Friday’s announcement closely for concrete East Malaysia infrastructure spend commitments, which could validate the research house’s constructive view on HKB.
For AEMULUS, the visibility offered by a record order book provides a near-term earnings cushion, though the ATE sector’s fortunes remain tethered to global semiconductor capex cycles. Retail investors should assess their own risk tolerance around cyclical exposures before drawing conclusions from the research house’s recommendations.
Key Takeaways
- HKB’s RM851m order book (6.8x FY25 revenue) positions the construction play to benefit from potential East Malaysia infrastructure initiatives in Budget 2027.
- AEMULUS turned profitable in 3QFY26 with a record RM122m order book (1.5x FY25 revenue), driven by AI, data-centre and automotive sector demand.
- Global AI capex—evidenced by Akamai’s USD11.6bn Anthropic deal and Meta’s AI agent rollout—creates downstream demand tailwinds for Malaysian ATE suppliers and semiconductor players.
- Malacca Securities expects the FBM KLCI to open positively this week, with Friday’s Budget 2027 announcement emerging as the key near-term event catalyst.
- Technology sector outperformed on Friday (+2.32%) following Micron’s earnings beat, while Energy lagged (-0.24%), reflecting a shift toward growth equities.
Frequently Asked Questions
Why does Malacca Securities favour HKB ahead of Budget 2027?
According to Malacca Securities, HKB holds a record order book of RM851 million (6.8 times FY25 revenue), providing strong earnings visibility. The research house expects Budget 2027 to announce infrastructure initiatives in East Malaysia, which could drive additional revenue opportunities for the construction company.
What is AEMULUS’s current order backlog situation?
AEMULUS maintains a record-high order book of RM122 million, equivalent to 1.5 times FY25 revenue, according to Malacca Securities. The research house attributed the strong backlog to surging demand from AI, data-centre and automotive industries, supported by global capex cycles in semiconductor infrastructure.
How are global AI developments affecting Malaysian semiconductor plays?
Malacca Securities noted that international deals like Akamai’s USD11.6 billion agreement with Anthropic and Meta’s AI agent rollout signal massive data-centre capex investment ahead. These tailwinds benefit Malaysian ATE suppliers and semiconductor-exposed equities by sustaining demand for testing equipment and CPU processing capacity.
What drove the FBM KLCI higher on Friday?
The local bourse tracked Wall Street’s rebound, where softer-than-expected US jobs data reduced expectations of imminent Fed monetary policy tightening. Technology stocks led local gains (+2.32%), buoyed by Micron’s earnings beat, while Energy declined 0.24%.
When is Budget 2027 expected to be announced?
According to Malacca Securities, Budget 2027 will be announced this Friday (5 October 2026), with the research house expecting it to shift investor attention toward infrastructure-related initiatives that could benefit construction and engineering plays like HKB.
This article is based on research published by Malacca Securities (M+ Online) on 5 October 2026. For the full report, visit M+ Online’s research portal. This article does not constitute investment advice. Retail investors should conduct their own due diligence and consult a financial adviser before making investment decisions.
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 05 October 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
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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