24/12/2025

BIZ & FINANCE WEDNESDAY | DEC 24, 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

IPPFA pegs Malaysia’s GDP growth in 2026 at 4.3-4.5% KUALA LUMPUR: Malaysia’s economy is projected to expand between 4.3% and 4.5% in 2026, reflecting a decisive shift towards growth that is increasingly supported by household consumption, services activity and internal income formation. According to IPPFA Sdn Bhd’s 2026 Economic Pulse report released yesterday, much of this momentum stems from two structural catalysts that will shape the trajectory of the coming year, namely the 13th Malaysia Plan (13MP) and Visit Malaysia 2026 (VM2026). It said 13MP provides medium-term direction by prioritising digital infrastructure, industrial upgrading and the green transition, while VM2026 delivers an immediate uplift to services, tourism and consumption. “A central upside identified in the outlook is the VM2026 campaign, which IPPFA estimates could inject between RM13 billion and RM21 billion into private consumption, translating into a 1-1.7% uplift in aggregate household spending power, with spillover effects extending beyond tourism into retail, transport, food services and other domestic-facing activities,” IPPFA said. Importantly, IPPFA highlights a qualitative improvement in consumption dynamics, whereby consumer spending is increasingly being supported by recurring income growth and labour market stability, rather than temporary fiscal measures, savings drawdowns or rapid credit expansion. With headline inflation moderating towards 2%, real purchasing power has stabilised, contributing to more predictable wholesale and retail trade activity and reducing household exposure to interest rate and income shocks, it added. – Bernama

Ringgit at strongest against US dollar since March 2021 THE ringgit climbed to another new high at yesterday’s closing, touching 4.0615, the strongest level last seen in early March 2021, as expectations of a US interest rate cut continued to pressure the greenback. At 6pm, the local currency surged to 4.0615/0665 versus the greenback, from 4.0770/0800 at Monday’s close. The ringgit reached 4.0747 on March 5, 2021. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit continued to appreciate further yesterday, as anticipation of an interest rate cut in the US remained the key factor driving the weaker US dollar. “Clearly, foreign exchange traders are constructive on the ringgit in the near term, and RM4 seems to be the next hurdle. The long-term average of USD-MYR from the moment of the ringgit peg removal in 2005 to the present is about RM3.82. Hence, room for further appreciation is clearly visible,” he told Bernama. At the close, the ringgit was traded lower against a basket of major currencies. It edged down against the euro to 4.7901/7960 from 4.7827/7862 at Monday’s close, fell against the British pound to 5.4851/4918 from 5.4750/4790, and depreciated against the Japanese yen to 2.6039/6072 from 2.5896/5916. The local currency traded mostly higher against Asean peers. It strengthened versus the Thai baht to 13.0486/0705 from 13.0740/0895, appreciated against the Indonesian rupiah to 241.9/242.3 from 242.9/243.3 previously, and was up against the Philippine peso to 6.90/6.91 from 6.94/6.95, but weakened against the Singapore dollar to 3.1607/1648 from 3.1592/1618.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1430 2.7690 3.2110 3.0060 4.8690 2.4080 3.2110 5.5750 5.2590 3.4580 59.1100 66.8200 53.6800 4.7100 0.0258 2.6590 41.9900 1.5400 7.1400 114.6800 111.3800 25.6300 1.4000 46.2000 13.8700 113.8300 N/A

3.9970 2.6560 3.1110 2.9210 4.7110 2.3180 3.1110 5.3970 5.0340 3.2070 56.6100 61.4700 51.0000 4.3800 0.0228 2.5360 38.6100 1.3700 6.7200 108.8700 105.7400 23.1400 1.2300 42.0600 12.3000 107.9000 N/A

3.9870 2.6400 3.1030 2.9090 4.6910 2.3020 3.1030 5.3770 5.0190

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

107.7000

3.0070

N/A

61.2700 50.8000 4.1800 0.0178 2.5260 38.4100 1.1700 6.5200 108.6700 105.5400 22.9400 1.0300 41.8600 11.9000 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

Transportation Neutral

MN Holdings Bhd Buy. Target price: RM2.27

Malaysian Economy Limited Price Pressure in November

Dec 23, 2025: RM1.63

Source: TA Research, DOSM

Source: Bloomberg, RHB Research

Source: Maybank Investment Bank

MNH, together with LS Cable & System Ltd (LSC) and Pembinaan Tajri Sdn Bhd (PTSB), via a 10:89:1 consortium, has accepted a letter of award from Tenaga Nasional Bhd (TNB) for the upgrading of a 132kV submarine power cable system connecting PMU Kuala Perlis to PMU Teluk Apau. The contract is valued at RM177.4 million. The project is expected to commence immediately and is targeted for completion by Q2’27. LSC, a South Korea–based cable manufacturer with a global presence, is expected to be the consortium’s project leader. MNH’s work scope will focus on its core competencies, primarily substation and onshore interconnection works, while PTSB will undertake a minor portion of the overall project scope. Based on its 10% effective stake, the project adds RM17.7 million to MNH’s order book, lifting total outstanding orders to RM882 million. Year-to-date new wins now stand at RM72 million, representing 14% of our FY26 replenishment target of RM500 million. Further upside is supported by a RM1 billion tender book, primarily across TNB (34%), data centres (15%), water and sewerage (12%), solar (11%) and other sectors. The company’s core business focuses on power infrastructure works, including high-voltage substation Engineering, Procurement, Construction, Commissioning and 275kV underground cabling, which are critical enablers of Malaysia’s energy transition and digital economy. Growth is anchored by ongoing data-centre and TNB substation work, complemented by rising opportunities in solar interconnection and utility infrastructure. BUY with RM2.27 TP. – Maybank Investment Bank, Dec 23

THE outlook for Malaysia’s external sector has become more encouraging while global uncertainties remain a consideration. Despite a potential lagged effect of recent trade tariff changes, global container demand and major consuming economies have remained resilient. Meanwhile, Asia’s economic dynamism, regional trade diversification, and the operating model of major liner alliances continue to underpin steady transhipment activity. RHB Economics projected a 9.3% export growth in 2026, driven by: i) The strength of global and regional growth, ii) developments in US tariff policies, and iii) the resilience of E&E exports. The global economy’s GDP is projected to accelerate to 3.5-3.7% in 2026, up from an estimated 3.2-3.3% this year. The first phase of the 15% tariff adjustment at Port Klang took effect in July 2025, with the second 10% hike scheduled for implementation in Jan 2026. We expect the sequential tariff increases to continue underpinning Westports’ earnings trajectory, providing a clear uplift to revenue visibility moving into FY26. Notably, gateway customers are billed on tariffs with percentage-based rebates (volume discounts) for export/import containers. Hence, when the tariff increases, the effective revenue collected from gateway cargo rises proportionally, net of rebates. Our NEUTRAL sector recommendation is in line with our call on sector heavyweight Westports, since we believe the current valuation has priced in the tariff adjustment. Hence, we prefer the logistics players, with TASCO as our Top Pick. We like TASCO for its diversified client base and business segments, which help to keep earnings stable. – RHB Research, Dec 23

HEADLINE CPI rose 1.4% YoY in November 2025, up slightly from October but below the consensus forecast of 1.5%. CPI was flat MoM, signaling muted price pressures. Overall inflation remains well contained, with no broad-based cost pass-through or supply shocks. At 1.4%, inflation is also well below its long-term average of 2.1%. Core CPI held steady at 2.2% YoY (MoM: unchanged). The gap with headline inflation reflects stable global commodity prices, which kept fuel and fresh food inflation subdued. Meanwhile, domestic demand factors—including wage adjustments, higher services costs, and price stickiness—continued to support core inflation. Four states recorded inflation above the national rate: Johor (1.9% YoY), Negeri Sembilan (1.9%), Kuala Lumpur (1.7%), and Selangor (1.6%). The remaining 12 states were at or below the national rate, with Kelantan the lowest at 0.2% YoY. Malaysia’s inflation was lower than Vietnam (3.6% YoY), Indonesia (2.7% YoY), and South Korea (2.4% YoY), but higher than China (0.7% YoY) and Thailand (-0.5% YoY). Inflation risks remain tilted to the downside, with limited near term upside. Globally, commodity prices are expected to stay soft, supported by easing energy costs, smoother supply chains, and fewer transport bottlenecks. Domestically, any adjustments in administered prices—like energy tariffs or subsidy rationalisation— are likely to be gradual, cushioning vulnerable households. Monetary policy remains supportive, with the OPR at 2.75%, maintaining stable financing conditions. – TA Research, Dec 23