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Market Outlook

Stocks to Watch in February 2026: Bursa Malaysia & US Market

📅 05 Feb 2026 📰 Duitwise Insights
Stocks to Watch in February 2026: Bursa Malaysia & US Market

TL;DR: The "Great Rotation" is here. Malaysia's 13th Plan launches infrastructure execution (Gamuda +17% upside), while US small-caps (Russell 2000 +12% YTD) beat mega-tech. Top buys: TNB (data centers), Palantir (39% growth), 99 Speedmart (defensive). Three IPOs this week.

Why February 2026 Changes Everything

The market narrative has flipped. After years of mega-cap tech dominance, capital is rotating into value, small-caps, and infrastructure. Malaysia enters its "execution year" under the 13th Malaysia Plan with 4.2% GDP growth. US investors chase small-caps after Russell 2000's best January start in 12 years.

Two unstoppable trends collide:

  • 🇲🇾 Bursa Malaysia: RM105B infrastructure + NETR data center power demand
  • 🇺🇸 US Markets: Russell 2000 +12% vs S&P 500 flat, small-cap earnings 17-22% growth

🇲🇾 Bursa Malaysia: Construction & Power Surge

1. Gamuda Berhad (GAMUDA) — Infrastructure Leader

Target: RM6.80 | Upside: +17% | Catalyst: Penang LRT Phase 1

539 Sen. Primary contractor for ECRL, Penang LRT, MRT3. Order book RM25B with 70% local content. Analysts project 15% earnings growth as projects move from design to execution.

Feb Catalyst: Penang LRT contract award (RM10B total value) + Budget 2026 capex confirmation.

2. Sunway Construction (SUNCON) — Urban Developer

Target: RM2.20 | RM18B Order Book | Catalyst: MRT3 Packages

Balanced portfolio across highways (Pan Borneo), rail (MRT3), buildings (ICL@Bukit Bintang). 20% margins from high-rise expertise. Recent wins push revenue visibility to 2028.

Feb Catalyst: MRT3 contract finalization + data center township projects.

3. Tenaga Nasional (TNB) — Data Center Power Play

Yield: 4.5% | RM2.3B Data Center Capex | Safety: ★★★★★

Malaysia's grid monopoly signs 2.5GW data center PPAs. RM15B capex cycle through 2030. Q4 earnings showed 8% EPS growth from industrial tariffs.

Feb Catalyst: Additional data center MOUs + NETR renewable roadmap updates.

4. 99 Speedmart — Defensive Retail

IPO Oversubscribed 6x | 2,800 Stores | 12% Revenue Growth

Hard-discount model thrives in downtrading environment. Recent IPO debut shows retail resilience. Expanding to 3,500 stores by 2028.

Feb Catalyst: Post-IPO performance + store expansion updates.

🇺🇸 US Market: Small-Cap & Value Rotation

1. Palantir Technologies (PLTR) — AI Software Leader

Growth: 26.5% | Zacks #1 Rank | US Gov't Contracts

AIP platform adoption accelerates commercial revenue 54% YoY. $1.2B remaining performance obligations. February earnings expected to validate 30%+ growth.

Feb Event: Q4 earnings (Feb 3) to show commercial acceleration.

2. Harmony Biosciences (HRMY) — Healthcare Upside

Upside: 39% | Pipeline: 3 New Drugs | Orphan Status

WAKIX monopoly + pitolisant expansion into Europe. Analysts project 25% revenue CAGR through 2028. Small-cap healthcare rotation beneficiary.

Feb Catalyst: Phase 3 trial data + European approval timeline.

3. DaVita Inc (DVA) — Healthcare Momentum

YTD: +21% | Kidney Care Leader | Defensive Earnings

450+ dialysis centers with pricing power. February's top small-cap performer amid healthcare rotation. 15x forward earnings valuation.

Feb Catalyst: Q4 results confirming margin expansion.

February IPO Calendar

Date Company Market Theme
Feb 6 Ambest Group ACE Market Food Processing
Feb 12 Kee Ming Group ACE Market Trading/Services
Feb 13 Hock Soon Capital Main Market Construction

February Earnings Calendar

Date Company Focus
Feb 3 Palantir (PLTR) Commercial AI growth
Feb 4 Amazon (AMZN) AWS AI monetization
Feb 5 Airbnb (ABNB) Small-cap proxy
Feb 27 Bursa Malaysia RM0.14 Dividend

Investment Strategy

Malaysian Investors (Balanced)

  • Infra 40%: Gamuda + Sunway (project execution)
  • Power 30%: TNB (data center monopoly)
  • Defensive 30%: 99 Speedmart (recession-proof)

US/Global Investors (Growth+Value)

  • AI Execution 40%: Palantir (software validation)
  • Healthcare 30%: Harmony + DaVita (39% upside)
  • IPO Allocation 30%: Hock Soon Capital (construction theme)

Duitwise Rating

⭐ 4.9 / 5

February 2026 marks the start of a multi-year rotation. Malaysia's infrastructure execution + US small-cap breakout create the perfect balanced portfolio opportunity.

💡 Pro Tip: Use our Malaysia Brokerage Calculator to minimize fees on frequent trading.

⚠️ NOT FINANCIAL ADVICE

Educational content only. Do your own research.

  • Infrastructure projects face delays (ECRL history)
  • Small-caps 2x volatile vs large-caps
  • IPO cornering risk (Ambest 6x oversubscribed)
  • Verify all earnings dates and dividend announcements
  • Consult Securities Commission-licensed advisor

Sources & Context

  • 13th Malaysia Plan announcements + Budget 2026 documents
  • Bursa Malaysia IPO calendar + analyst briefings
  • NETR roadmap + TNB data center PPAs
  • Russell 2000 performance data + Zacks Investment Research
  • Regulatory: Securities Commission Malaysia