Tech Stocks Expected to Lead Bursa Malaysia This Week on US Earnings Hopes

Technology stocks are poised to lead Bursa Malaysia this week, provided that financial results from US semiconductor and artificial intelligence (AI) companies continue to surpass expectations, thereby bolstering global investor sentiment. Jeffry Azizi Jaafar, an investment consultant at Maybank Investment Bank, noted that beyond technology, banking and utility stocks also hold potential as key market drivers amid the ongoing second-quarter earnings announcement season.

Investors are expected to focus on heavyweight stocks and those with exposure to technology, utilities, data centers, and banking. "This is because the announced results and prospects have the potential to be catalysts for short-term stock price movements," Jaafar told Utusan Malaysia. Global investor attention is also directed towards the financial reports of major companies such as Palantir Technologies Inc., Advanced Micro Devices, Inc. (AMD), Super Micro Computer, Inc. (SMCI), Caterpillar Inc., The Walt Disney Company, Eli Lilly and Company, and Shopify Inc.

These companies are anticipated to provide indicators of AI demand, corporate spending, and the strength of the global economy. Investors are also closely watching three key US economic data points: the Non-Farm Payrolls (NFP) data, the ISM Manufacturing Purchasing Managers' Index (PMI), and the ISM Services PMI. "These three provide an overview of the US economic strength and can influence expectations regarding the Federal Reserve's interest rate trajectory," Jaafar explained.

Any results significantly deviating from expectations could impact global market sentiment, including Bursa Malaysia. "Therefore, I anticipate next week's trading will remain selective. The technology, banking, and utility sectors are expected to remain the focus if corporate financial reports and global economic data support market sentiment. In a market still sensitive to news, investors are advised to prioritize companies with strong fundamentals, sustainable profit growth, and positive earnings momentum," he said.

Meanwhile, Dr. Aimi Zulhazmi Abdul Rashid, an economics analyst at UniKL Business School, highlighted three counters from the semiconductor, green aluminum, and banking sectors as investor focus this week. These are driven by potential catalysts from industry developments and expectations of global interest rate changes. Among the counters drawing attention is UWC Berhad in the semiconductor and medical technology sector, which previously recorded strong performance and was among the top-performing stocks in July 2025. UWC, which supplies components to industry players like Nvidia and Intel for automatic test equipment (ATE) applications, is expected to benefit.