Markets

THE Securities Commission Malaysia (SC) has issued a new Guidance Note on Sukuk aimed at strengthening alignment with Maqasid al-Shariah, as part of initiatives under the Capital Market Masterplan 2026–2030.

The framework is intended to complement existing shariah compliance standards by encouraging a more holistic assessment of sukuk issuances, including broader considerations such as value creation, strategic alignment, and economic and social outcomes.

While sukuk structures already meet established shariah requirements, the SC said the new guidance is designed to enhance how issuances are evaluated and articulated, particularly in relation to issuers’ objectives and the intended use of proceeds.

The guidance outlines key considerations for shariah advisers and issuers, including the application of Maqasid al-Shariah principles across six aspirations and 15 underlying principles. It also covers areas such as structuring, governance, disclosure, and inclusivity within the sukuk ecosystem.

A set of illustrative indicators and guiding questions has been included to support practical application, alongside examples demonstrating how alignment with Maqasid principles can be assessed in actual sukuk issuances.

The SC said the initiative encourages market participants to integrate these considerations into structuring and disclosure practices, while continuing to comply with existing Shariah rulings and regulatory requirements.

The move is part of Malaysia’s broader effort to strengthen the Islamic capital market and reinforce its position as a global hub for Islamic finance. — TMR

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SRKK AI Bhd has seen strong investor demand for its initial public offering (IPO), with the retail tranche oversubscribed 312.3 times ahead of its ACE Market listing on July 9, 2026.

The company said it received 29,428 applications worth RM1.4 billion for the 14.2 million shares made available to the Malaysian public, making it one of the most heavily oversubscribed IPOs in Bursa Malaysia this year.

The 312.3 times oversubscription rate is the highest recorded for IPOs on Bursa Malaysia in 2026 to date.

SRKK AI ED and CEO Yew Lip Sin said the strong response reflects investor confidence in the group’s growth prospects and its AI-driven business model.

He said the listing would support the company’s expansion in artificial intelligence solutions across Southeast Asia, as well as deepen its services for its existing client base of more than 1,600 customers.

SRKK AI said it plans to raise RM20.48 million from the IPO, with proceeds allocated mainly to AI development initiatives, including the establishment of AI labs and an AI academy, as well as product development in analytics and business intelligence.

Other allocations include RM1.84 million for expansion into Indonesia, RM3.70 million for an in-house security operations centre, RM1.80 million for branding and marketing, RM4.64 million for working capital, and RM4.50 million for listing expenses.

The group said AI-related solutions accounted for about 11% of revenue, or RM11.8 million, in FY2025.

SRKK AI is a Microsoft Managed Partner and the first Malaysian firm to obtain all six Microsoft Solution Partner designations under the Microsoft AI Cloud Partner Program.

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BERJAYA Property Bhd has proposed to subscribe for a 29% equity stake in Manjaran Sdn Bhd for RM58 million, giving it exposure to the Perlis Maritime Corridor (PMC) integrated logistics and port development project.

In a filing with Bursa Malaysia today, the group said it had entered into a conditional share subscription agreement for 2.32 million new Manjaran shares, representing 29% of the enlarged share capital.

The deal will be largely satisfied via the issuance of 206.8 million new Berjaya Property shares at 28 sen each, amounting to RM57.9 million, with the remaining RM100,000 to be paid in cash.

Upon completion, Manjaran will hold a 4.06% stake in Berjaya Property.

Manjaran is the investment holding company behind Mutiara Perlis Sdn Bhd, which is developing the Perlis Maritime Corridor – a multi-component logistics hub comprising the Perlis Inland Port, Perlis Sanglang Port and Perlis Power Hub.

The project is positioned as a northern gateway for regional trade, integrating port facilities, rail connectivity and customs infrastructure to handle rising container volumes in the northern economic corridor.

Berjaya Property said the investment provides an entry into the port, logistics and energy infrastructure sectors, while allowing the group to preserve cash as most of the consideration is settled via share issuance.

The group said Phase 1 of the Perlis Inland Port has already commenced operations with an initial capacity of 600,000 TEUs, significantly higher than the previous Padang Besar Container Terminal.

The subscription is not expected to have a material impact on earnings or net assets for the current financial year ending June 2026, as completion is targeted for the second half of 2026.

The deal will be funded via a combination of new share issuance and internal funds, and is subject to regulatory approvals, including from Bursa Malaysia.

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PETRONAS Chemicals Group Bhd is evaluating the divestment of its 50% stake in Pengerang Petrochemical Company Sdn Bhd (PPC) by end-2026, potentially removing a significant earnings drag and unlocking value through a special dividend. Meanwhile, the renewal of a major olefins & derivatives customer’s under term contract underscores increasing demand for supply security. We lower our FY26 urea average selling price assumption to USD550/metric tonne (MT) (from USD700/MT), resulting in a 22% cut to our FY26 earnings forecast, while maintaining FY27-FY28. Following the recent share price correction, we believe the risk-reward has become more compelling. Upgrade Petronas Chemicals to Buy (from Hold) with a revised target price of RM5.56 (from RM5.63), based on a 1.2x price to book value multiple (near 5-year average). – HLIB Research, a unit of Hong Leong Investment Bank Bhd (June 29, 2026)

(Calls by analysts tracked by Bloomberg: 9 Buy, 9 Hold, 3 Sell; Consensus target price: RM5.54)

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BURSA MALAYSIA opened higher but retreated thereafter, tracking Wall Street’s weaker performance last Friday amid heightened US-Iran tensions.

At 9.10 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index fell 5.70 points to 1,662.04 from Friday’s close of 1,667.74. The index opened 1.04 points higher at 1,668.78.

Market breadth was negative, with decliners outpacing gainers 211 to 143, while 303 counters were unchanged, 2,086 untraded, and 133 were suspended.

Turnover amounted to 156.50 million shares worth RM75.07 million.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said Wall Street ended lower last Friday, with technology stocks under pressure as investors locked in profits following the recent sharp sell-off in artificial intelligence-related counters.

He added that the latest US-Iran attacks have further heightened geopolitical tensions in West Asia, dampening overall market sentiment.

“Market undertone remains cautious in the absence of catalysts. While current levels present a solid opportunity to accumulate, we recommend investors proceed with care.

“Although laggards may be on the radar, we believe punters should stay on the buying list. For today, we expect the index to hover within the 1,665-1,675 range,” he told Bernama.

Among heavyweight stocks,  Maybank shed two sen to RM10.78, Public Bank decreased five sen to RM4.78, Tenaga Nasional slipped 18 sen to RM14.16, and IHH dropped a sen to RM8.53, while CIMB was flat at RM7.41.

Among the active counters, ACE Market debutant RT Pastry eased one sen to 17 sen, Nova MSC, Zetrix AI and Bina Puri were half-a-sen lower at 6.5 sen, 76.5 sen and 29 sen, respectively. GIIB was flat at 48 sen.

On the gainers’ list, Fraser & Neave ticked up 40 sen to RM28.10, United Plantations bagged 28 sen to RM32.88, Petronas Chemicals and Nestle were 14 sen higher at RM4.16 and RM95.98, respectively. Sunway Construction increased 11 sen to RM7.43.

Among the top losers, Malaysian Pacific Industries shed 42 sen to RM46.58, Hong Leong Financial gave up 22 sen to RM18.28, Petronas Dagangan trimmed 18 sen to RM18.42, KL Kepong slid 14 sen to RM21.16, and Ajinomoto decreased six sen to RM18.80.

On the broader market, the FBM Emas Index was 30 points lower at 12,335.02, the FBM Top 100 Index slipped 30.70 points to 12,170.89, and the FBM Emas Shariah Index reduced 19.13 points to 12,222.17.

The FBM Mid 70 Index went up 2.16 points to 17,728.35, and the FBM ACE Index shed 23.95 points to 4,721.35.

Sector-wise, the Financial Services Index reduced 72 points to 19,591.12, the Energy Index inched up 0.59 of a point to 746.49, the Plantation Index weakened 12.09 points to 8,870.89, and the Industrial Products and Services Index added 1.10 points to 180.69. — BERNAMA

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DOMESTIC-FACING counters may be a safer bet after Bursa Malaysia’s benchmark index fell sharply last week, tracking an emerging-market sell-off triggered by a firmer US dollar and the unwinding of the artificial intelligence trade.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) fell 2.6% week-on-week to 1,667.7, trimming its year-to-date gain to 0.7%, as a global risk-off mood hit Bursa Malaysia.

“With the sell-off driven by external forces, an unwinding AI trade and a more hawkish Fed, we favour domestic-facing, cash-generative companies that are largely insulated from the global sell-off and supported by local buying and the relief from cheaper oil,” BIMB Securities Sdn Bhd said in a report today.

The research house’s watchlist includes Hibiscus Petroleum Bhd, which it has rated a “Buy” with a 52-week target price of RM2.80, Sunway Construction Group Bhd (Buy; RM8.28), Telekom Malaysia Bhd (Buy; RM7.78), Tenaga Nasional Bhd (Buy; RM16.77) and Velesto Energy Bhd (Hold; RM0.32).

For the week ended June 26, 2026, the plantation sector was the sole gainer, rising 0.1% to 8,883.0, supported by firmer crude palm oil prices.

BIMB Securities said the market’s decline reflected a broad global risk-off sentiment rather than domestic factors.

Foreign investors resumed net selling on Bursa Malaysia, recording a net outflow of RM555 million for the week ended June 26, a sharp reversal from the near-flat RM11 million outflow recorded a week earlier.

Domestic investors absorbed the selling, with local retailers turning net buyers of RM380 million while local institutions added RM175 million, comfortably offsetting the foreign outflow.

The research house said Bursa Malaysia’s near-term direction now depends largely on external cues rather than domestic developments.

“A clean US-Iran settlement and steady Hormuz flows would keep oil low and support domestic-facing names. A renewed flare-up or a confirmed Fed hike would push oil and foreign outflows back up.

“We are watching three swing factors: the durability of the ceasefire, the Fed’s July path and the timing of RON95 subsidy rationalisation. Until these clear, we favour domestic-facing, cash-generative names with limited exposure to global tech and would treat further weakness as a chance to accumulate,” it said.  –TMR

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