25/12/2025

BIZ & FINANCE THURSDAY | DEC 25, 2025

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Selective opportunities as local stock market enters year’s end

Petronas strengthens partnership with CNOOC via LNG supply agreement KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), through subsidiary Petronas LNG Ltd, has entered into a sale and purchase agreement with CNOOC Gas and Power Singapore Trading & Marketing Pte Ltd for the supply of one million tonnes per annum of liquefied natural gas (LNG). The agreement builds on the long-standing working relation ship between Petronas and CNOOC, strengthening coopera tion in LNG supply while sup porting China’s economic growth, and national clean energy agenda, including the “Dual Carbon” aspirations of peaking emissions before 2030 and achieving carbon neutrality by 2060. Petronas LNG Marketing and Trading vice-president, Shamsairi M Ibrahim said: “This agreement marks an elevation of our relationship with CNOOC, advan cing our shared commitment to energy security and a lower carbon future. Beyond supplying LNG, it reflects the continued develop ment of our long-term partnership. Petronas remains committed to delivering reliable and cleaner LNG solutions, working with partners to advance shared energy transition goals.” Separately, Bernama reoorted that Petronas Gas Bhd subsidiary Pengerang LNG (Two) Sdn Bhd (PLNG2) has entered into a jetty usage supplementary agreement with Pengerang Terminals (Two) Sdn Bhd (PT2SB) to effect a one-off prepayment worth US$173.64 million (RM706.28 million). PT2SB is a joint venture between PRPC Utilities and Facilities Sdn Bhd (a wholly owned subsidiary of Petronas), Dialog Equity (Two) Sdn Bhd, Vopak Terminal Pengerang BV and Permodalan Darul Ta’zim Sdn Bhd. The prepayment transaction will be settled under the jetty usage agreement dated Feb 28, 2017.

PETALING JAYA: As 2025 draws to a close, Malaysia’s equity market is entering a more selective phase, characterised by steady parti cipation and improving domestic sentiment. Amid persistent global macro uncertainty and recalibrating interest rate expectations, Rakuten Trade Research observes that local market conditions remain cons tructive, supported by domestic liquidity and resilient consump tion trends. Recent market activity suggests that buying interest has been absorbed in an orderly manner. In a statement yesterday, Rakuten Trade Research said this points to a healthier market structure where investors are in creasingly guided by funda mentals and earnings visibility rather than short-term market movements. “Domestic institutional partici pation has continued to play a stabilising role, providing an im portant anchor against external volatility and reinforcing confi dence in Malaysia’s economic fundamentals,” it said. While blue chips remain a key focus, Rakuten Trade Research believes opportunities are in creasingly selective as the market transitions into year-end, with traditional festive-driven con sumption during this period remaining a meaningful theme that could support selected sectors into year-end and early 2026. With major festive celebrations occurring in close succession, household spending typically accelerates during this period, improving near term earnings visibility for companies exposed to everyday consumption. This outlook is further sup ported by steady tourist arrivals, easing input cost pressures from a firmer ringgit and expectations of targeted cash assistance in the year ahead. Within the consumer space,

o Rakuten Trade Research says recent activity points to healthier structure where investors are increasingly guided by fundamentals and earnings visibility rather than short-term movements

taining exposure to steady cash flows. “As we approach the end of the year, market conditions remain constructive but disciplined. We are seeing steady participation, which is a positive sign for overall market stability. A strengthening MYR also acts as a solid catalyst attracting the return of foreign funds. In this environment, in vestors should focus on com panies with clear demand drivers, resilient margins and recurring consumption rather than short term market movements,” said Rakuten Trade research head Kenny Yee. As investors position their portfolios toward the new year, Rakuten Trade Research believes patience and selectivity will remain key. Companies that combine seasonal uplift with everyday relevance are better placed to sustain earnings mo mentum beyond the festive period and into early 2026. “As we close out 2025, we are grateful for the continued trust of Malaysian traders and investors. The year has been marked by shifting market dynamics, and we believe disciplined investing sup ported by timely, credible insights has become increasingly impor tant. “Rakuten Trade remains com mitted to supporting our clients with reliable research insights and seamless access to both local and global markets. As we move into 2026, our focus will remain on strengthening our digital capa bilities and research offerings to help investors navigate markets with greater clarity and confi dence,” said Rakuten Trade CEO Kazumasa Mise.

Mise: Committed to supporting clients.

Yee: We’re seeing steady participation.

audited net assets PKFT, HFT and PKF as at Dec 31, 2024, amounting to RM3.3 million, RM51.1 million, and RM65.3 million, respectively, as well as their prospects and strategic fit with the group, supported by an independent valuation ranging from RM102.5 million to RM126.9 million. Commenting on the proposed acquisitions, Hextar Global group managing director Lee Chooi Keng said the transaction reinforces the group’s long-term agriculture stra tegy and builds on its core strengths through a closely aligned ex pansion. She added that Hextar remains disciplined in its approach to growth, evaluating opportunities based on their ability to enhance long-term after festive periods while Farm Fresh Bhd benefits from increased home cooking and baking during festive seasons, which typically drives higher dairy consumption, while its strong cold-chain infra structure supports margin stability and reduces wastage risks. Fraser and Neave Holdings Bhd provides a more defensive ex posure within the consumer space, supported by staple food and beverage products with recurring demand that offer earnings stability during periods of market uncertainty. Beyond consumer-related oppor tunities, Rakuten Trade Research continues to view selected banking stocks as core holdings, sup ported by stable loan growth, resilient balance sheets and consistent earnings profiles. Defensive sectors, particularly consumer staples, also remain relevant for investors seeking to manage volatility while main

Rakuten Trade Research high lights several companies that are positioned to benefit from dif ferent spending behaviours. Mr DIY Group (M) Bhd tends to benefit during the preparation phase as households spend on decorations, gifting items and home essentials ahead of cele brations. Its wide product assort ment and value positioning allow it to capture incremental spend ing without reliance on big-ticket purchases. 99 Speed Mart Retail Holdings Bhd benefits from stock-up beha viour ahead of festive periods, supported by an essentials-heavy product mix and exposure to the government-led cash assistance initiatives. In the beverages segment, Spritzer Bhd continues to stand out due to the culturally em bedded nature of consumption during gatherings, with demand typically remaining stable even

Hextar Global to acquire three fertiliser companies for RM120 million KUALA LUMPUR: Hextar Global Bhd announced that it has entered into conditional share sale agreements with Hextar Industries Bhd (HIB) and Hextar Fertiliser Group Sdn Bhd to acquire the entire equity interests in PK Fert Sdn Bhd (PKFT), PK Fertilizers Sdn Bhd (PKF) and Hextar Fert Sdn Bhd (HFT) for RM120 million. to create synergies across customer reach, distribution and operational efficiency,” it told the stock exchange in a filing. value, strengthen operating plat forms, and uphold sound gover nance, in line with the group’s objective of building a sustainable and resilient agriculture business. Upon completion of the acqui will enable the group to redeploy its financial resources, whereby RM100 million, or about 83.33% of the total disposal consideration, will be allocated towards the expansion of its food and beverage (F&B) retail business.

It said the fertiliser operations of Hextar Global and HIB are expected to continue in their respective existing geographical markets, namely Peninsular Malaysia and export markets for Hextar Global, and East Malaysia for HIB. “This natural geographical separation is primarily driven by logistical consi derations and cost efficiencies inherent in serving the respective markets and is not expected to overlap,” it added. The purchase consideration of RM120 million was arrived at after taking into account the latest

sition, the fertiliser companies will become wholly owned subsidiaries of Hextar Global and will be con solidated into the group’s financial results. The fertiliser business will be managed as a separate business segment within the group, and the acquisition is expected to strengthen the group’s overall earnings base through orderly integration and long-term sustainability of the group’s core businesses. Meanwhile, HIB said the disposals

As part of the group’s ongoing expansion plan, it will continue to grow the presence of “Luckin Coffee” outlets across the country, as well as explore and undertake other F&B ventures. HIB envisages that the F&B retail business will continue to grow in Malaysia and exceed 25% of the group’s net assets. Accordingly, HIB is seeking its shareholders’ approval to diversify into the F&B retail business. – Bernama

The group said that the proposed acquisitions represent a strategic extension of Hextar Global’s agri culture platform with the inclusion of the fertiliser business as a new business line within the group to complement its existing agro chemical operations. “Fertilisers and agrochemicals serve a similar client base, and the proposed acquisitions are expected