05/12/2025

BIZ & FINANCE FRIDAY | DEC 5, 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

Malaysia’s GDP expected to grow 4.6% in 2026: CGS KUALA LUMPUR: Malaysia’s GDP is expected to expand by 4.6% in 2026, supported by improving external demand despite a slight moderation in domestic activity, said CGS International Securities Malaysia Sdn Bhd. In a report, the research house said that after a brief US-China trade truce, external demand may improve further, reducing supply chain disruptions and sustaining Malaysia’s GDP growth. CGS International said the positive but modest outlook for 2026 is tempered by several risks on the horizon. “The US reciprocal tariff, after a year of deliberations, is slated to take effect next year, posing risks to supply chains. “Similarly, the US sectoral tariff, which is widely expected soon, may land the global economy in yet another tailspin,” it said. Furthermore, it noted that China continues to contend with subdued economic momentum, as its weakening property market has yet to stabilise. “New risks are emerging in the financial markets, including technology stock repricing and yen carry-trade unwinding, with the potential for spillover to the real economy. “Combined, we think these threats could ultimately set the stage for a wave of volatility and a prolonged period of weakness next year,” CGS International said. Meanwhile, for Indonesia, the firm has raised its 2026 growth forecast to 5.1%, citing expectations of a recovery supported by proactive government stimulus. As for Singapore, CGS International said its GDP is expected to expand 2.8% in 2026, weighed by softer growth among key trading partners. – Bernama

THE ringgit surged to 4.11 against the greenback at the close yesterday, hitting a new high in almost four and a half years, as weaker economic data in the US continued to heighten expectations of a cut in US interest rates. At 6pm, the ringgit bounced to 4.1115/1165 versus the greenback compared to Wednesday’s close of 4.1200/1235. This was its highest level in four years and five months, beating the previous high last seen on June 16, 2021, when the ringgit closed at 4.1155. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said softer US economic data, mainly the sharp drop in the latest ADP employment report, has strengthened expectations of a US interest rate cut. “The sharp drop in ADP payrolls – with private employment decreasing by 32,000 jobs in November after an upwardly revised 47,000 increase in October, has strengthened expectations of a cut (when the US Federal Reserve (Fed) meets next week),” he told Bernama. At the close, the ringgit trended lower against major currencies. It fell versus the British pound to 5.4868/4935 from 5.4697/4744 at Wednesday’s close, slid against the euro to 4.8014/8075 from 4.7982/8022, and edged down vis-à-vis the Japanese yen to 2.6555/6589 from 2.6476/6501. However, the local note traded higher against Asean currencies. It gained versus the Singapore dollar to 3.1747/1788 from 3.1810/1839 at Wednesday’s close and climbed against the Indonesian rupiah to 246.8/247.3 from 247.7/248.1 previously. Ringgit surges to 4.11 against US dollar, near 4½-year high

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1895 2.7780 3.2310 2.9940 4.8800 2.4200 3.2310 5.5830 5.2590 3.4950 59.5600 66.9900 54.2600 4.7300 0.0263 2.7160 42.6300 1.5500 7.2000 115.9600 112.6000 25.4200 1.4200 45.9600 13.6800 115.1300 N/A

4.0445 2.6660 3.1300 2.9110 4.7220 2.3310 3.1300 5.4050 5.0350 3.2420 57.0500 61.6400 51.5700 4.4000 0.0233 2.5910 39.2200 1.3700 6.7800 110.0800 106.8900 22.9600 1.2400 41.8600 12.1400 109.1600 N/A

4.0345 2.6500 3.1220 2.8990 4.7020 2.3150 3.1220 5.3850 5.0200

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

108.9600

3.0420

N/A

61.4400 51.3700 4.2000 0.0183 2.5810 39.0200 1.1700 6.5800 109.8800 106.6900 22.7600 1.0400 41.6600 11.7400 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

Wasco Bhd Neutral. Target price: RM1.03

Plantation Overweight

Banking Overweight

Dec 4, 2025: RM1.05

Source: PublicInvest Research

WASCO secured a contract worth RM619.4-825.8 million from Technip Energies Italy S.p.A, for the engineering, procurement and fabrication of pre-assembled process modules for a large-scale facility. The contract, to be delivered over 37 months, represents its first sizeable win this year and lifts total YTD FY25 contract wins to approximately RM2.6-2.9 billion. With this award, Wasco’s outstanding orderbook surpasses the RM3 billion mark, rising to RM3.2–3.4 billion, a level not seen since Q3’24. We view this award improve medium term earnings visibility and support Wasco’s strategic pivot toward low-carbon energy infrastructure. The scope of work includes a complete procurement, and construction of pre-assembled modules on a remeasurement basis. The contract is expected to be completed within 37 months i.e. by Dec 31, 2028, assuming the works will commence immediately in Dec 2025. We understand that the contract is related to the BluePoint Number One ATR project in Louisiana, a joint venture between CF Industries, Jera and Mitsui & Co, which aims to deliver the world’s largest low-carbon ammonia plant with a capacity of approximately 1.4 million mt per year, enabling >95% carbon-recovery efficiency. This latest contract signals a clear recovery in Wasco’s orderbook after four consecutive quarters of weak replenishment at average of RM370 million. The slowdown was largely attributed to escalating trade tensions, which created market volatility and delayed investment decisions by major customers, particularly those assessing supply chain risks and project timing amid uncertain macro conditions. Nevertheless, these concerns have now eased, paving the way for project commitments to resume more steadily. Neutral with RM1.03 TP. – PublicInvest Research, Dec 4

Source: TA Research, Bank Negara Malaysia

Source: HLIB Research

DURING the recent quarterly results season, most planters delivered earnings that were either in line with or ahead of our expectations. JPG, IOI and TSH outperformed, while GENP, HSP, and SDG met expectations. KLK was the sole miss, dragged by weaker-than-expected manufacturing performance and softer FFB output growth. Upstream earnings were broadly higher (with the exception of SDG, as the marginal increase in FFB output was not sufficient to cushion higher production cost), driven mainly by seasonally higher cropping trend, though partly weighed down by slightly lower realised palm product prices and higher CPO production cost. Downstream earnings were mixed, with IOI and SDG posting stronger results while KLK slipped into the red, largely reflecting varied demand conditions across key markets and product portfolio, in our view. Higher realised palm product prices and generally higher FFB output lifted upstream earnings of most planters under our coverage in Q3’25 (except for HSP and SDG). HSP’s decline was due primarily to shifts in cropping pattern and higher unit production cost, While SDG’s weaker upstream performance stemmed mainly from lower realised PK prices and OER. Output guidance was mixed, with GENP and SDG revised their 2025 FFB output guidance lower (owing to the setback in YTD FFB production), while HSP maintained its FY25 output guidance (supported by its expectation of a sustained MoM production uptrend observed since July 25, which is expected to continue through Dec 25). – HLIB Research, Dec 4

TOTAL loans grew 5.4% YoY (+0.5% MoM) in October 2025, moderating slightly from 5.5% in September. By segment, consumer loans rose 5.4% YoY (+0.5% MoM), while business loans increased 5.3% YoY (+0.6% MoM). YTD, overall loan growth stood at 3.9% (vs. +4.1% in Oct 2024), supported by a 4.4% rise in consumer loans (Oct 2024: +5.0% YTD) and a 3.2% gain in business loans (Oct 2024: +2.8% YTD). By purpose, working capital loans rose modestly by 3.2% YoY, while loans for construction activities advanced 6.2% YoY. By sector, contractions persisted across several segments, led by Education, Health & Others (-8.6%), followed by Construction (- 5.1%), Mining & Quarrying (-4.7%), Agriculture, Forestry & Fishing (-3.9%), and Water Supply, Sewerage & Waste (-0.2% YoY). Despite these declines, loan momentum remained firm in most other sectors. Growth was strongest in Electricity, Gas, Steam & Air Conditioning Supply (+47% YoY), followed by Information & Communication (+17.5% YoY), Finance, Insurance & Business Activities (+12.5% YoY), Manufacturing (+5.9% YoY), Accommodation & Food Services (+2.6% YoY), Wholesale & Retail Trade (+2.3% YoY), and Transportation & Storage (+0.9% YoY). Capital market activity remained strong in Oct 2025, with the private sector raising net funds of RM136.2 billion (excluding redemptions), up from RM106.7 billion a year earlier. Of this, RM4.7 billion was raised through new share and warrant issuances (YTD 2024: RM6.4 billion), while debt securities issuance expanded significantly to RM131.6 billion (YTD 2024: RM100.3 billion). – TA Research, Dec 4