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 co

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.