Markets

BURSA MALAYSIA ended the week on a higher note as bargain hunting continued following the heavy sell-off earlier this week, an analyst said. 

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.92 points or 0.32 per cent to 1,525.86 from Thursday’s close of 1,520.94.

The benchmark index opened 2.03 points higher at 1,522.97 and moved between 1,522.97 and 1,529.52 throughout the trading session.

The market breadth was positive, with 621 gainers overtaking 393 decliners and 511 counters unchanged, while 933 were untraded and eight suspended.

Turnover slightly improved to 3.18 billion shares worth RM2.81 billion, compared with 3.17 billion shares valued at RM2.48 billion on Thursday.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said key regional indices also trended higher thanks to strong earnings from technology companies.

Taiwan Semiconductor Manufacturing Company’s (TSMC) second quarter (2Q) earnings soared nearly 61 per cent year-on-year to a new record, fuelled by sustained strength in artificial intelligence (AI) chip demand.

However, the Japanese stocks were on a downtrend as inflation data came in slightly higher than expected.

Thong said sentiment remained fragile for the local bourse as the index failed to re-capture the 1,530 level.

“Investors are also reluctant to hold long positions due to many external uncertainties,” he told Bernama. 

UOB Kay Hian Wealth Advisors Sdn Bhd’s head of investment research Mohd Sedek Jantan said the closing performance by the FBM KLCI was, however, insufficient to lift the index into positive territory on a weekly basis.

On a Friday-to-Friday comparison, he noted the index registered a marginal decline of 0.66 per cent.

In today’s session, industrial products led the gainers, supported by an improving economic outlook for Malaysia, which appears to have alleviated investor concerns over potential economic headwinds stemming from uncertain trade policies and ongoing geopolitical risks.

Commenting on the gross domestic product (GDP), the data released today showed Malaysia’s advanced estimate for second-quarter GDP coming in at 4.5 per cent, slightly ahead of its projection of 4.3 per cent, reinforcing the resilience of the domestic economy despite persistent external challenges.

“The improved sentiment was further buoyed by stronger-than-expected US macroeconomic data overnight.

“Notably, US retail sales rose by 0.6 per cent in June, while initial jobless claims fell for the fifth consecutive week to their lowest level since mid-April – both signalling sustained strength in the American labour market.

Of the heavyweight stocks, Public Bank and Press Metal Aluminium rose 6.0 sen each to RM4.31 and RM5.13, Gamuda gained 18 sen to RM5.33, Sunway added 7.0 sen to RM5.06 and IHH Healthcare was up 4.0 sen to RM6.57. 

Among the most active stocks, ACE Market debutant Enproserve Group was 2.5 sen higher at 26.5 sen, NexG added half-a-sen to 49.5 sen, Zetrix AI and Tanco gained 1.0 sen each to 94.5 sen and 91 sen and iCents advanced 2.0 sen to 36 sen. — BERNAMA

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BURSA MALAYSIA opened higher today, tracking Wall Street’s overnight positive performance, boosted by improved economic data and quarterly earnings reports that exceeded consensus expectations.

At 9.11 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 5.49 points, or 0.36 per cent, to 1,526.43 from Thursday’s close of 1,520.94. The benchmark index opened 2.03 points higher at 1,522.97.

The broader market was positive, with gainers outpacing decliners 260 to 95, while 267 counters were unchanged, 1,836 untraded, and eight suspended.

Turnover stood at 187.29 million shares worth RM128.20 million.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the United States’ 10-year yield eased slightly to 4.453 per cent.

“Over in Hong Kong, the Hang Seng Index ended marginally lower as traders are sidelined while waiting for fresh catalysts,” he told Bernama. 

Back home, he said the FBM KLCI finally rebounded to above the 1,520 mark, possibly buoyed by stock accumulation by local institutions following days of downtrend.

“For today, we expect the index to hover within the 1,515-1,525 range,” he added. 

Among the heavyweight counters, Maybank and IHH Healthcare were 2.0 sen higher each at RM9.55 and RM6.55, respectively. Public Bank increased 1.0 sen to RM4.26, CIMB perked up 7.0 sen to RM6.57, and Tenaga Nasional reduced 4.0 sen to RM13.74. 

In active trade, ACE debutant Enproserve Group was 5.5 sen higher at 29.5 sen, NexG and Zetrix AI inched up half-a-sen each to 49.5 sen and 94 sen, respectively. KHPT added 1.5 sen to 13.5 sen, and Gamuda rose 12 sen to RM5.27. 

On the broader index board, the FBM Emas Index advanced 49.94 points to 11,475.11, the FBMT 100 Index climbed 49.74 points to 11,238.11, the FBM Emas Shariah Index appreciated 48.50 points to 11,522.47, the FBM 70 Index jumped 114.12 points to 16,658.16, while the FBM ACE Index ticked up 10.39 of a point to 4,646.37.

By sector, the Financial Services Index put on 45.47 points to 17,347.82, the Energy Index edged up 2.16 points to 741.27, the Plantation Index rose 16.62 points to 7,447.16, and the Industrial Products and Services Index strengthened 0.47 of a point to 154.46. — BERNAMA

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ICENTS Group Holdings Bhd has targeted a 10 per cent growth in revenue for 2026, driven by an expected rise in contribution from its manufacturing operations.

Managing director Ong Mum Fei said the group’s manufacturing of cleanroom fixtures and related products accounts for 10 to 15 per cent of overall revenue, with contribution expected to rise as the company ramps up production and expands its facility.

“We are also progressively securing projects over the next few months. This year, we anticipate securing more data centre projects, although most of the recognised revenue will come in 2027,” he told a press conference after the company’s listing ceremony here today.

iCents made its debut on the ACE Market with its share price opening at 29 sen, a five sen premium over its initial public offering (IPO) price of 24 sen, with 13.59 million shares traded.

The group is mainly involved in providing cleanroom services, including engineering, procurement, construction, and testing, and the commissioning of cleanrooms catering to semiconductor and electronics manufacturing, data centres, pharmaceutical, and life sciences sectors.

Ong noted that the company’s new facility in Mantin, Negeri Sembilan, is expected to begin operations in the first quarter of next year, while the plan to tap local and international markets like Kuching, Sarawak and Jakarta, Indonesia, is expected to materialise within a year.

He said that the clean room and facility service provider does not currently have a dividend policy but is planning to introduce one.

“We are planning to allocate a payout of between  20 and 25 per cent of annual profits while balancing the need to retain funds for capital expenditure,” he said.

On the impact of tighter export controls, Ong said the group does not foresee any immediate effect on its business because most of its revenue comes from recurring sources.

On currency fluctuation risks, Ong said the group still conducts its business in Indonesia using the ringgit and iCents has no deals in Vietnam or Australia, although some products delivered to Vietnam are invoiced in US dollars. — BERNAMA

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GAMUDA BHD’S shares rose in early trade after the group secured a water treatment project from the Perak state government. 

At 10.15 am, the counter gained six sen to RM5.09, with a total of 1.82 million shares traded. 

Gamuda via its 50 per cent-owned Gamuda-Perak State Development Corporation (PKNP) joint venture (JV) has secured the letter of appointment from the Perak state government to jointly develop and operate water treatment and distribution infrastructure in Kerian, Perak.

This forms part of the broader Northern Perak Water Supply Scheme, which carries an estimated development cost of RM5 billion.

In a research note today, Hong Leong Investment Bank Bhd (HLIB) anticipated that Gamuda’s total investment in the JV could come to approximately RM500 million over the next few years.

“Based on an estimated total development cost of RM5 billion, we are estimating a potential construction contract value of RM4 billion to be converted in the calendar year 2026.

“Upon completion, this water project would serve as Gamuda’s second recurring income source domestically, to be complemented by the Ulu Padas hydro project in Sabah,” it said.

HLIB maintained a “buy” call on Gamuda with a target price (TP) of RM5.70 per share.

Meanwhile, Public Investment Bank Bhd viewed the JV development positively as Gamuda stands to benefit from two income streams, construction revenue and recurring income upon the project’s commercialisation.

“However, we keep our forecasts unchanged, pending necessary approvals and finalisation of the privatisation agreement.

“Therefore, we maintain an ‘outperform’ call on Gamuda with an unchanged TP of RM5.60 per share,” said the investment bank in a separate note today.

Furthermore, CGS International Securities Malaysia Sdn Bhd said that while Gamuda maintains its order book target of RM40 billion to RM45 billion by the end of 2025, there is a chance that it may exceed the target.

It said that achieving the award by the end of 2025 would bring its year-to-date wins to RM23.4 billion.

Thus, the company estimates that it will end 2025 with a cumulative order book of RM47 billion, factoring in a burn rate of RM1 billion per month and the more visible local wins.

“From a broader local construction sector perspective, we also view this award as a signal that the government may look to expedite project flows.

“The key events to watch are the 13th Malaysia Plan to be tabled end of July 2025 and the Budget in October 2025,” it said in a note separately. 

Hence, CGS International reiterated its “add” call with a TP of RM6.00 per share for Gamuda. — BERNAMA

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TAN Chong Motor Holdings Bhd has been slapped with an unusual market activity (UMA) query by Bursa Malaysia Securities after its share price soared to its highest level in nearly a year.

The stock jumped as much as 25.5 sen or 44% to an intraday high of 83.5 sen today before closing at 79 sen, up 21 sen or 36% for the day, with over 29.6 million shares traded.

It was among the top gainers and most actively traded counters on Bursa Malaysia.

At the closing price, Tan Chong Motor is valued at RM530.88 million.

In its query, Bursa asked the Nissan distributor to clarify whether there are any unannounced corporate developments, negotiations, rumours or reports that could explain the unusual trading activity.

The company is also required to confirm compliance with disclosure obligations under listing rules.

Last week, Tan Chong announced that its wholly owned unit Tanahku Holding Sdn Bhd is disposing of a 3.194-acre land parcel on Jalan Putra to Avaland Bhd for RM148.8 million.

The group said proceeds will be used for working capital and future business opportunities. –TMR

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