13/01/2026

BIZ & FINANCE TUESDAY | JAN 13, 2026

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

Construction sector expected to stay bullish on data centre boom KUALA LUMPU R : The construction sector is expected to remain bullish this year, supported by persistently strong data centre demand and sustained capital expenditure commitments from global technology firms, according to Kenanga Investment Bank Bhd. In a note yesterday, it said the sector has delivered a strong two year run, with the KLCON Index rising 70% underpinned by the rapid roll-out of data centre contracts. “With several near-term data centre project awards in the pipeline and overall data centre development expected to stretch well into 2030, we expect data centre-related contracts to remain the dominant growth driver for the sector in 2026,” it said. According to the Construction Industry Development Board, RM182.3 billion worth of main contractor contracts were awarded as of end-November 2025, surpassing the full-year 2025 forecast of RM180 billion. “For 2026, we maintain our contract award assumption of RM180 billion, supported by continued public-sector project rollouts and sustained private-sector momentum, particularly from data centres,“ said Kenanga Investment. The investment bank is“overweight”about the sector despite the slowdown in major infrastructure works. “Although the timing for MRT3 remains unclear despite the Transport Ministry’s final approval, several key projects are poised for near-term roll-out. “These include the Penang light rail transit Mutiara Line packages 2 and 3, Penang Airport expansion, Pan Borneo Highway Phase 2, the Sabah–Sarawak Link Road, Subang Airport redevelopment, and Johor’s elevated autonomous rapid transit,” it added. – Bernama

THE ringgit closed firmer against the greenback yesterday as concerns over the US Federal Reserve’s (Fed) independence weighed on the American dollar. At 6pm, the local currency advanced to 4.0605/0660 versus the US dollar from Friday’s close of 4.0700/0765. IPPFA Sdn Bhd director of investment strategy and country economist, Mohd Sedek Jantan, said the concerns over Fed independence have triggered a broad pullback from US assets, pushing the US dollar index (DXY) lower and lifting emerging-market currencies, including the ringgit. “For Malaysia, the key anchor remains the US bond market. Treasury yields have stabilised, signalling that this is still being treated as a political shock rather than a break in the monetary regime. As long as the yields remain contained, Asia’s foreign exchange markets can hold their ground,” he told Bernama. At the close, the ringgit traded mixed against a basket of major currencies but higher versus Asean peers. It appreciated versus the Japanese yen to 2.5717/5754 from 2.5888/5935 at Friday’s close, dipped against the British pound to 5.4630/4704 from 5.4579/4666, and eased vis-à-vis the euro to 4.7435/7499 from 4.7383/7459. The ringgit was higher against the Singapore dollar at 3.1567/1613 from 3.1629/1682 at Friday’s close, gained vis-à vis the Indonesian rupiah to 240.9/241.3 from 241.9/242.4, and advanced versus the Philippine peso to 6.85/6.86 from 6.87/6.88. However, it slipped versus the Thai baht to 12.9961/13.0195 from 12.9474/9738 previously. Ringgit firmer as concerns over Fed’s independence hit dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1500 2.7900 3.2200 2.9780 4.8290 2.3860 3.2200 5.5640 5.2140 3.4640 59.7200 66.2500 53.6700 4.6900 0.0258 2.6460 42.1500 1.5400 7.1000 114.4600 111.5600 26.0400 1.4100 46.4400 13.8400 114.0300 N/A

4.0020 2.6740 3.1190 2.8930 4.6700 2.2960 3.1190 5.3830 4.9910

3.9920 2.6580 3.1110 2.8810 4.6500 2.2800 3.1110 5.3630 4.9760

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

108.0400 3.2110 57.1600 60.9200 50.9600

107.8400 3.0110 60.7200 50.7600 4.1500 0.0178 2.5130 38.5300 1.1700 6.4700 108.4600 105.7000 23.3100 1.0300 42.0600 11.8700 N/A N/A

4.3500 0.0228 2.5230

N/A

38.7300 1.3700 6.6700 108.6600 105.9000 23.5100 1.2300 42.2600 12.2700

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

Labour Market Unemployment rate eases to 2.9%

Economy IPI moderates in November

Consumer Activity Moderate spending in late-2025

Source: DOSM, TA Research

Source: DOSM, TA Research

MALAY S IA’ S Industrial Production Index (IPI) moderated in November, expanding by 4.3% YoY to 142.3 points, undershooting market expectations of 5.3% YoY and easing from the 6.0% YoY growth recorded in October. The softer outturn suggests a loss of momentum in industrial activity, likely reflecting a moderation in manufacturing output amid uneven external demand and a higher base effect. Nonetheless, the IPI remained in expansionary territory, indicating that industrial activity continues to be supported by domestic demand and selective export-oriented segments. The weaker-than-expected performance was primarily driven by a moderation in both the mining and manufacturing sectors, although this was partly cushioned by continued expansion in the electricity sector. On a month-on-month (MoM) basis, the IPI contracted by 1.1%, declining from 144.0 points in September. The manufacturing sector, which accounts for 65.9% of the IPI, expanded by 4.9% YoY in November, though it contracted by 0.5% on a MoM basis. Growth was more moderate across export oriented industries, reflecting subdued external demand, consistent with the softer trade performance reported earlier. This suggests that while manufacturing activity remains in expansionary territory, momentum is increasingly constrained by external headwinds. In tandem with the slower growth in manufacturing output, the sector’s sales value expanded moderately by 4.6% YoY in November 2025, totaling RM169.4 billion. The growth in sales value within the Manufacturing sector was mainly contributed by the E&E products sub-sector, surged 10.8% YoY in November 2025 (Oct 2025: 11.6% YoY). – TA Research, Jan 12

MALAY S IA’ S distributive trade growth moderated in November 2025, with the Volume Index of Distributive Trade (DTI) expanding by 5.2% YoY to 167.0 points, moderated from 5.7% YoY in the previous month. In value terms, Distributive Trade Sales (DTS) rose by 6.4% YoY to RM158.9 billion, also moderated from a 7.2% YoY increase in October. Nonetheless, the performance in both volume and value terms still points to firmer domestic demand and sustained positive growth of consumer spending momentum during the month. On a MoM basis, both the DTI and DTS declined by 1.2%, likely reflecting a normalisation following the October surge, which was boosted by festive spending during Deepavali. At the same time, lower pump prices after the introduction of the BUDI95 mechanism helped ease fuel-related cost pressures, freeing up household disposable income and supporting discretionary spending and overall domestic demand. Despite a challenging and uncertain global backdrop, Malaysia’s consumer spending remained resilient, with the three month moving average of the DTI rising to 5.4% YoY from 5.1% YoY in the previous month. This resilience is underpinned by a robust labour market, stable household income conditions, and targeted government assistance programmes. We maintain our view that private consumption will remain the key growth driver in the final quarter, supported by a favourable mix of policy support and cyclical tailwinds. For the October–November period, the DTI rose by an average of 5.5% YoY, compared with 4.8% YoY growth in Q3’25, signaling a stronger reading for Q4 private consumption indicators. A resilient labour market, lower fuel prices, and a stable interest rate environment are expected to continue bolstering household purchasing power. – TA Research, Jan 12

Source: DOSM, TA Research

MALAY S IA’ S total employment rose by 3.1% YoY (0.2% MoM) to 17.09 million persons in November 2025, with job gains recorded across all major economic sectors. The number of employed persons in the Services sector continued to show steady growth, particularly in human health and social work activities, wholesale & retail trade, and accommodation and food & beverage services activities. Likewise, the agriculture, manufacturing, construction and mining & quarrying sectors also registered increases in employment. According to the Department of Statistics (DOSM), several initiatives have supported steady job growth, including: 0 The National Entrepreneurship Institute rolled out several coaching programmes in Sabah, including INSKEN Bumiputera Business Coaching and product development initiatives. 0 Malaysia continues to strengthen its intellectual capital through innovation and knowledge-based platforms that support long term economic resilience. A key example is the Putrajaya Festival of Ideas 2025, which focused on creativity, knowledge exchange, and future-oriented solutions. 0 Malaysia is strengthening community-level economic resilience through targeted empowerment programmes, as seen in the Blueprint Carnival & i-SEED #KitaSelangor 2025 and the Zakat Selangor Carnival 2025, which together reflect a coordinated approach to economic and social development. Overall, these initiatives helped support Malaysia’s solid labour market performance in November 2025. Labour force participation remained firm at 70.9%, with employment continuing to rise and unemployment staying low. – TA Research, Jan 12