Malaysia Morning Wrap | AppLovin Leads AI-Driven Tech Selloff as Investors Reprice Profit Risk From Rapidly Emerging AI Tools

Key Takeaways:

• AppLovin Leads AI-Driven Tech Selloff as Investors Reprice Profit Risk From Rapidly Emerging AI Tools

• Malaysia Targets Rehabilitation of Over 6,800ha of Abandoned Rubber Estates by 2027

• Engineering Contractor Kee Ming Closes at RM283m Valuation After Overwhelmed ACE Market

• Stocks to watch: KEEMING, Solarvest Holdings Bhd, etc.

🇺🇸 Wall Street Summary

$S&P 500 Index (.SPX.US)$ 6,832.76 (-1.57%)

$Dow Jones Industrial Average (.DJI.US)$ 49,451.98 (-1.34%)

$Nasdaq Composite Index (.IXIC.US)$ 22,597.15 (-2.03%)

Thursday’s AI-driven, risk-off mood in equity markets is beginning to spread, as investors wager that artificial intelligence could erode some firms’ future profits, sparking a broader selloff across risk assets. The session’s largest percentage loser was $Applovin (APP.US)$, which sank 19.7% following its fourth-quarter earnings release. The marketing platform’s shares have been under strain this year amid fierce competitive pressures.

$XAU/USD (XAUUSD.CFD)$ tumbled 4.1% as mounting worries over AI fueled a wave of selling throughout global financial markets.

The trucking and logistics sector saw a sudden sell-off, with the Russell 3000 Trucking Index plunging more than 9% intraday – its steepest single-day decline in ten months, since April 2025. $C.H. Robinson Worldwide (CHRW.US)$ fell as much as 24% intraday before closing down 14.5%. As one of America’s largest third-party logistics and freight brokerage firms, its share price is often viewed as a barometer for the sector.

🇲🇾 Bursa Market Insight

$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ 1750.85 (-0.32%)

Top Gainer: $PETGAS (6033.MY)$ RM18.540 (+1.64%)

Top Loser: $QL (7084.MY)$ RM4.030 (-1.71%)

USD/MYR: $USD/MYR (USDMYR.FX)$ RM3.902 (-0.10%）

The $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ edged lower on Thursday as investors took profits in banking stocks, despite the ringgit climbing to its strongest level against the US dollar since April 2018. In today's trade, 21 KLCI constituents ended in negative territory, while six advanced.

The Ministry of Plantation and Commodities (KPK) said the Malaysian Rubber Board (LGM) is aiming to rehabilitate 4,137 hectares of abandoned rubber plantations this year and a further 2,750 hectares in 2027, covering smallholder plots and private estates nationwide.

"The programme sets an initial physical target of replanting 10,000 hectares annually, involving about 6,700 smallholders nationwide, with an allocation of RM32.4 million in 2025." answered by KPK in a written reply published on Parliament’s website on Thursday.

AI data centres in Malaysia are projected to need about 7.7 gigawatts of electricity by 2030. This growth is being made possible by cheaper battery systems, which now cost between US$90 and US$100 per kilowatt-hour, compared with up to US$230 per KWh about a year ago.

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🔔 Stocks to Watch

$KEEMING (0392.MY)$ jumped on its ACE Market debut on Thursday, driven by strong investor demand for the mechanical and electrical engineering company's shares. The stock began trading at 79 sen, compared with its initial public offering (IPO) price of 38 sen per share. It has also come onto Maybank Investment Bank's radar, with the research house initiating coverage on the company with a 'buy' recommendation and a target price of 79 sen.

$SLVEST (0215.MY)$ aims to more than double its power generation capacity over the next two years, supported by falling battery costs that are spurring further renewable energy deployment. The company currently has roughly 1.2 GW of capacity in the country and plans to add another 2 GW by next year.

$MAXIS (6012.MY)$ net profit for the fourth quarter ended Dec 31, 2025 (4QFY2025) increased 18% year-on-year to RM380 million, driven by stronger service revenue and effective cost management. Quarterly revenue rose 3.8% year-on-year to RM2.88 billion. The company declared a fourth interim dividend of four sen per share, plus a special one-off dividend of 1.5 sen per share.

$SKPRES (7155.MY)$ net profit for the third quarter ended Dec 31, 2025 (3QFY2026) declined 37% year-on-year to RM16.13 million, dragged by weaker sales volumes. Revenue for the quarter slipped 9.2% to RM457.19 million, and no dividend was declared. For the cumulative nine months to Dec 31, net profit was down 19.8% year-on-year at RM70.83 million, while revenue decreased 8.3% to RM1.51 billion.

$JPG (5323.MY)$ net profit for 4QFY2025 increased 9.1% year-on-year to RM87.86 million, while revenue for the quarter expanded 5.4% to RM489.82 million, with softer crude palm oil (CPO) prices tempering earnings growth. The group announced an interim dividend of three sen per share. For FY2025, net profit surged 34.1% year-on-year to an all-time high of RM345.02 million, supported by stronger palm product prices and higher sales volumes.

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Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The Edge

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