KUALA LUMPUR (June 30): Maybank Investment Bank (Maybank IB) has upgraded the technology sector and expects short-term gains in plantations for the second half of 2026, while stocks that had mainly benefited from "war premiums" are expected to see less attention.

In a note on Tuesday, the research house said the technology sector is expected to benefit from artificial intelligence (AI) and data centre growth, while plantations are likely to see near-term support with crude palm oil prices staying elevated on the possibility of an El Niño effect.

Stocks that previously gained from "war premiums" amid geopolitical tensions — such as PETRONAS Chemicals Group Bhd (KL:PCHEM) — are now expected to lose their appeal. As a result, the research house has downgraded PETRONAS Chemicals to 'sell' from 'hold', with its target price (TP) revised downward to RM3.92 from the earlier forecast of RM5.62.

The research house noted that the group’s average selling prices across both its olefins and derivatives, as well as its fertilisers and methanol segments, continue to decline, pressured by easing Brent crude oil prices following the Middle East ceasefire.

This contrasts with Press Metal Aluminium Holdings Bhd (KL:PMETAL), which benefits from strong structural fundamentals. Maybank IB has upgraded the stock to 'buy' from 'hold', with a TP of RM10.80, citing that "global aluminium supply is expected to remain in deficit amid ongoing supply disruptions in the Middle East".

Maybank IB highlighted that Velesto Energy Bhd (KL:VELESTO) offers one of the highest dividend yield plays, with expected 2026 and 2027 yields of more than 7%, followed by real estate investment trusts (REITs), such as YTL Hospitality REIT (KL:YTLREIT), which quote on a gross yield basis after the cessation of the withholding tax.

Meanwhile, stocks such as RHB Bank Bhd (KL:RHBBANK), Carlsberg Brewery Malaysia Bhd (KL:CARLSBG) and Heineken Malaysia Bhd (KL:HEIM), automotive players such as MBM Resources Bhd (KL:MBMR) and Bermaz Auto Bhd (KL:BAUTO), as well as smaller-cap planters Ta Ann Holdings Bhd (KL:TAANN), Genting Plantations Bhd (KL:GENP) and TH Plantations Bhd (KL:THPLANT) also offer dividend yields of more than 5%.

For the technology sector riding on the AI and data centre growth theme, Maybank IB’s top picks include ViTrox Corp Bhd (KL:VITROX) and Pentamaster Corp Bhd (KL:PENTA).

In addition, Kee Ming Group Bhd (KL:KEEMING) has been added to the research house’s top picks, backed by its plans to expand into high-voltage power infrastructure while leveraging its mechanical and electrical expertise. The company is also moving into new areas such as Tenaga Nasional Bhd’s (KL:TENAGA) power projects and data centre substations.