25/09/2025

BIZ & FINANCE THURSDAY | SEPT 25, 2025

20

MARKETS/FROM THE BROKERS

SUNBIZ presents extracts of a selection of commentaries and research reports received from stockbrokers on counters that could be of interest to investors.

DISCLAIMER: The information is extracted from stockbrokers’ commentaries and research reports and do not represent the views or opinions of Sun Media Corporation Sdn Bhd. It is not a solicitation, recommendation or an offer to buy or sell the equities featured. Sun Media Corporation shall not be liable or responsible for any consequences resulting from usage of the information.

[ Compiled by SunBiz Team

Asean’s 2024 trade with Plus Three partners hits US$1.2 tril KUALA LUMPUR: Trade between Asean and its Plus Three partners – China, Japan and South Korea – has reached US$1.2 trillion (RM5 trillion) in 2024, accounting for 31.7% of Asean’s total trade, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz. He also said foreign direct investment (FDI) inflows from the Plus Three countries into Asean stood at US$44.4 billion, representing close to 20% of total FDI into the region. “These figures underscore the importance of our enduring partnership,” Tengku Zafrul said in his opening remarks at the Working Lunch – 28th Asean Economic Ministers (AEM) Plus Three Consultation yesterday, held on the sidelines of the 57th AEM and Related Meetings. The working lunch session brought together Asean economic ministers and their counterparts, including China’s Commerce Vice-Minister Yan Dong, Japan’s Minister of Economy, Trade and Industry Muto Yoji, and South Korean Minister for Trade Yeo Han Koo, along with senior officials from the Asean Secretariat. Tengku Zafrul, who is chairing this year’s AEM Meetings under Malaysia’s Asean Chairmanship, expressed confidence that the spirit of collaboration among the Asean Plus Three nations would be productive and forward-looking, delivering outcomes that would strengthen cooperation to the benefit of businesses. He noted that since 1997, the Asean Plus Three Economic Cooperation framework has grown steadily and meaningfully. “On behalf of Asean, I thank the Plus Three Ministers and delegations for their continued partnership, and the Asean Secretariat for its steadfast support in advancing our shared economic agenda,” he said. – Bernama

Ringgit softens against dollar as US rate uncertainty lingers THE ringgit continued to close lower against the US dollar yesterday, as lingering uncertainty over the US Federal Reserve’s interest rate direction weighed on the local note and dampened investor sentiment. At 6pm, the local note weakened to 4.2120/2170 against the greenback from Tuesday’s close of 4.1985/2000. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said mixed signals from US Federal Reserve officials continued to lend support to the greenback. “The US dollar-ringgit surpassed the RM4.20 level as the US Dollar Index (DXY) climbed 0.16% to 97.419 points,” he told Bernama, adding that the stronger dollar weighed not only on the ringgit but also on other regional currencies. At the close, the ringgit was mostly lower against a basket of major currencies, except the Japanese yen. It strengthened to 2.8400/8436 against the Japanese yen from 2.8441/8453 at Tuesday’s close, but eased to 5.6761/6828 versus the British pound from 5.6701/6721 and slipped to 4.9567/9626 against the euro from 4.9546/9564 previously. The local note was mixed against Asean currencies. It appreciated to 13.1572/1781 against the Thai baht from 13.1900/2001, but weakened to 3.2743/2784 versus the Singapore dollar from 3.2724/2738, and declined to 252.4/252.8 against the Indonesian rupiah from 251.5/251.8. It was flat against the Philippine peso at 7.33/7.34 compared with 7.33/7.33 on Tuesday.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2705 2.8270 3.3210 3.0770 5.0370 2.5050 3.3210 5.7680 5.4150 3.5740 60.3200 69.1900 55.3900 4.8800 0.0265 2.8940 44.2300 1.5300 7.5500 118.2200 114.8700 25.6000 1.4500 47.0500 13.9600 117.3900 N/A

4.1255 2.7130 3.2180 2.9930 4.8760 2.4130 3.2180 5.5850 5.1880 3.3290 57.7800 63.6800 52.6400 4.5800 0.0239 2.7910 40.6900 1.4300 7.1100 112.2300 109.0500 23.1200 1.3300 42.8600 12.3800 111.3100 N/A

4.1155 2.6970 3.2100 2.9810 4.8560 2.3970 3.2100 5.5650 5.1730

1 Australian Dollar 1 Brunei Dollar 1 Canadian Dollar 1 New Zealand Dollar 1 Singapore Dollar 1 Sterling Pound 1 Swiss Franc 100 UAE Dirham 100 Bangladesh Taka 100 Chinese Renminbi 100 Danish Krone 100 Hongkong Dollar 100 Indian Rupee 100 Indonesian Rupiah 100 Japanese Yen 100 New Taiwan Dollar 100 Norwegian Krone 100 Pakistan Rupee 100 Philippine Peso 1 Euro

111.1100

3.1290

N/A

63.4800 52.4400 4.3800 0.0189 2.7810 40.4900 1.2300 6.9100 112.0300 108.8500 22.9200 1.1300 42.6600 11.9800 N/A

100 Qatar Riyal 100 Saudi Riyal

100 South Africa Rand 100 Sri Lanka Rupee 100 Swedish Krona

100 Thai Baht

Source: Malayan Banking Bhd/Bernama

Telecommunications Neutral

KSL Holdings Bhd Not Rated

August 2025 CPI Headline and core CPI edge higher

Source: Company data, RHB

Source: Bloomberg

MALAYSIA telcos posted 6% returns YTD – second strongest regional performer after Singapore and ahead of Thailand and Indonesia. Relative to the Asean-4 peers, Malaysian telcos were ahead of Indonesian (+5.3%) and Thai (+1.5%) peers but trailed Singaporean companies (+18%). In terms of stocks, Time dotCom (TDC) saw the largest share price gain of 19% YTD, although much of this was realised in 1H’25. Axiata followed in second place (+12% YTD) with a stellar 29% rally over the past three months while TM’s share price gained 9%. Having ceded earlier gains, the share prices of Maxis and CDB were largely steady YTD (+1-2% YTD). Mobile service revenue was relatively steady QoQ but fell 1.2% YoY in Q2’25 (1H’25: -1.4% YoY) as blended ARPU (Big-2 MNOs) slipped 1.5% from SIM consolidation and price competition. That said, aggregate sector EBITDA (excluding Axiata) inched higher by 1% YoY in Q2’25 on tight cost controls. Specifically, Maxis’ Q2’25 EBITDA grew 5% with its EBITDA share rising quarter to 44.1%. 5G access costs for MNOs were steady (RM50-55 million), despite higher 5G traffic with industry 5G subs up 45% QoQ. On the expanded sales and services tax on tower rentals, MNOs highlighted ongoing discussions with the government with a potential worst-case earnings impact of 1-5% on an annualised basis. Industry fixed line revenue fell 3.3% YoY in Q2’25, led by the 4.7% drop in TM’s retail internet revenue, which slipped for the second quarter in a row as competition and promotional offers crimped ARPU with lower subs growth. In contrast, Maxis’ home revenue (including wireless broadband service) held up on steady ARPU and subs-adds. – RHB Research, Sept 24

KSL is an almost-pure Johor property play that is set to benefit from: i) SGD-driven retail spending, and ii) the pick-up in economic activities driven by the Johor-Singapore Special Economic Zone. Although the market has turned bullish on the Iskandar Malaysia property market since 2H’23, the stock is under-invested – which should change when management meets more investors ahead. KSL has 4,946 acres of land, of which 4,586 acres (or 93%) are located in Johor. 53% of the total landbank (2,635 acres) is in prime Iskandar Malaysia areas. The remaining land is in Klang and Setia Alam, Selangor. The company also owns a few investment properties including KSL City Mall (NLA: 450k sq ft) and KSL Esplanade Mall (NLA: 650k sq ft), as well as three hotels. The investment property segment contributes almost 20% of total revenue. In line with the industry trend, KSL’s property sales rose substantially from

Source: PublicInvest Research, CEIC, DOSM

MALAYSIA’S headline CPI rose to +1.3% YoY in August (July: +1.2%), reflecting modest upward pressure across selected consumption groups. The increase was led by Insurance and Financial Services (+5.6% YoY, July: +5.5%), followed by Personal Care, Social Protection and Miscellaneous Goods and Services (+4% YoY, July: +3.9%), Restaurants and Accommodation Services (+3.5% YoY, July: +3.1%), Education (+2.4% YoY, July: +2.2%), Food and Beverages (+2% YoY, July: +1.9%), and Recreation, Sport and Culture (+0.9% YoY, July: +0.8%). Conversely, Housing, Water, Electricity, Gas and Other Fuels recorded a softer increase (+1.2% YoY, July: +1.3%), alongside Health (+1.1% YoY, July: +1.2%), Alcoholic Beverages and Tobacco (+0.4% YoY, July: +0.6%), and Transport (+0.2% YoY, July: +0.4%). Meanwhile, Information and Communication and Clothing and Footwear remained in deflationary territory, at -5.6% YoY and - 0.1% YoY, respectively in August. Malaysia’s core CPI, which excludes price-controlled and volatile food items, rose to +2% YoY in August (July: +1.8%), reflecting modest underlying price pressures. Similarly, the adjusted headline CPI, which strips out regulated fuel components (RON95, RON97, and diesel), increased marginally to +1.4% YoY (July: +1.3%). Despite the uptick, we maintain the view that inflationary conditions remain broadly contained, underpinned by subdued cost passthrough and restrained demand-side pressures. – PublicInvest Research, Sept 24