Bursa Holds Firm, Time to Accumulate! Wall Street Plunges on AI Valuation Fears

Global markets turned cautious overnight as Wall Street suffered sharp losses, reignited by fears of overblown AI valuations and stronger-than-expected September US jobs data that slashed hopes of a November Fed rate cut. The US 10-year yield dipped slightly to 4.086%, offering little comfort.

In Asia, Hong Kong’s Hang Seng opened strongly on Nvidia’s blockbuster Q3 results and upbeat guidance that eased AI bubble concerns, but profit-taking erased early gains by close.

Bursa Holds Firm

Back home, the FBM KLCI faced late-session foreign selling pressure, slipping just below the key 1,620 level. We believe overseas funds were the main culprits behind the aggressive afternoon sell-down. Despite the dip, we maintain a positive stance and strongly advocate accumulating quality stocks at current levels. Investors appear to be pricing in 2026 earnings with revised valuations now looking attractive. We expect the index to consolidate within the 1,620–1,630 band today. Stay invested – the bargain window is open.

(Source: Rakuten Trade)