Affin Hwang IB says uncertainty from the US‑Iran conflict and upcoming state
elections clouded Malaysia’s Q3 equity outlook but expects those risks to ease
and support a Q4 rebound. It warns prospects for US rates to remain higher for
longer and renewed foreign outflows will keep near‑term volatility. The bank
expects H2 performance to be driven by sustained investment growth and
infrastructure upgrades, state elections as a political barometer, and fresh
institutional inflows from government corporate value‑unlocking plans. Affin
Hwang maintains an overweight rating on Malaysian equities and keeps its KLCI
target at 1,780 for end-2026.