21/01/2026

BIZ & FINANCE WEDNESDAY | JAN 21, 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

StanChart predicts stable 2026 global growth amid uneasy calm KUALA LUMPUR: Global economic growth is expected to remain broadly stable this year, amid an uneasy calm marked by persistent geopolitical risks, fading trade front-loading, and diverging inflation dynamics across major economies. Standard Chartered chief economist and head of FX for Asean and South Asia Edward Lee said global growth is projected at around 3.3% to 3.4%, broadly in line with last year, despite rising event risks. “The GDP numbers may say one thing, but quite clearly it’s uneasy, given geopolitical developments involving Venezuela and Iran as well as renewed tensions around trade and tariffs,” he said during a media briefing on Standard Chartered’s first-half (1H) 2026 Global & Malaysia Outlook yesterday. Lee said global growth held up last year despite uncertainty, supported by widespread monetary easing, strong fiscal spending in developed economies, manageable inflation, and steady labour markets. “There were about 150 rate cuts across the world, strong fiscal support from developed economies, inflation was still low and labour markets were steady,” he added. He said trade tensions were partly offset by periods of truce and front-loading of exports to the US, while artificial intelligence (AI)-related investment also provided a significant boost to growth. Looking ahead, Lee said, global monetary conditions remain accommodative, with limited risk of renewed tightening. “We do not think there will be any rate tightening in the near term,” he said, although he noted that the pace of global rate cuts is nearing its end. – Bernama

THE ringgit eased slightly against the US dollar at the close yesterday, as the market sentiment turned cautious amid rising tariff tension between the US and the EU. At 6pm, the local currency inched down to 4.0530/0580 against the greenback from 4.0520/0570 at Monday’s close. SPI Asset Management managing partner Stephen Innes said the escalating trade rift between the US and the EU over the status of Greenland has caught markets off guard, as it had not been previously priced into market expectations. “As a result, the ringgit largely sat out today’s modest bout of US dollar softness, with investors reluctant to add exposure in an increasingly fragile risk environment,” he told Bernama. Bank Muamalat Malaysia Bhd’s chief economist, Dr Mohd Afzanizam Abdul Rashid, said the market sentiment remains cautious, with long-term Japanese government bond (JGB) prices tanking as Japan approaches an election in February, where populist policies are expected to be the main selling points by politicians. The local note was lower against other major currencies. It fell versus the euro to 4.7530/758 from 4.7100/7159 on Monday, eased against the Japanese yen to 2.5696/5729 from 2.5657/5692 and was softer vis-à-vis the British pound at 5.4618/4686 from 5.4321/4388. The local note was also softer against Asean currencies. It dropped against the Singapore dollar to 3.1602/1646 from 3.1521/1562, slipped versus the Thai baht to 13.0397/0629 from 12.9623/9845 and was almost flat vis-à-vis the Indonesian rupiah and the Philippine peso at 239.0/239.4 and 6.81/6.83, respectively. Ringgit eases against dollar as US-EU tariff worries weigh Kossan Rubber Industries Bhd Outperform. Target price: RM1.50

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1270 2.7760 3.2040 2.9660 4.7960 2.3930 3.2040 5.5290 5.1930 3.4280 59.5000 65.8000 53.3500 4.6200 0.0254 2.6250 41.9900 1.5300 7.0300 114.1300 110.9300 26.0000 1.4000 46.0700 13.7600 113.3600 N/A

3.9790 2.6630 3.1010 2.8810 4.6380 2.3030 3.1010 5.3480 4.9690

3.9690 2.6470 3.0930 2.8690 4.6180 2.2870 3.0930 5.3280 4.9540

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

107.4200 3.2020 56.9500 60.5100 50.6600

107.2200 3.0020 60.3100 50.4600 4.0900 0.0175 2.4930 38.3900 1.1700 6.4100 108.1500 105.1100 23.2800 1.0200 41.7300 11.7900 N/A N/A

4.2900 0.0225 2.5030

N/A

38.5900 1.3700 6.6100 108.3500 105.3100 23.4800 1.2200 41.9300 12.1900

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

Malaysian economy GDP surprises on the upside

Plantation Neutral

Jan 20 , 2026: RM1.00

Source: PublicInvest Research

Source: TA Research, Bloomberg

Source: TA Research, DOSM

FOR FY26, management guides for 10–15% volume growth, supported by filled order books, with a new natural rubber glove plant (nine production lines) nearing completion. ASPs remain competitive at US$16.5–17.0/1k pcs (US market) and ~US$15.5/1k pcs (Europe market), with buyers still willing to pay a ~US$0.50–0.80/1k pcs premium for Malaysian gloves due to better quality consistency. Clean-room glove capacity, currently ~0.6% of total capacity, is expected to expand to ~3–4% of total capacity next year, targeting semiconductor users. The group is optimistic of achieving at least RM100 million in annual earnings for FY26. However, in our opinion, this is a conservative target and we expect the group to deliver a higher profit, mainly driven by its strategic cost-optimisation efforts. Labour efficiency and automation remain key focus areas, with management estimating savings of ~RM1,000 per million pieces, alongside plans to reduce the workforce to below 3,000 from the current <5,000. In addition, potential land monetisation opportunities could lead to significant disposal gains given the low acquisition cost, particularly the landbank measuring 824-acre in Bidor, Perak and the 57-acre in Batang Berjuntai, Selangor. For full year FY25, we expect a dividend of 4 sen per share, implying an estimated payout ratio of 80%. The group remains cash-rich, with a net cash position of RM1.6 billion as at end-September. Management does not expect USD weakness to materially impact margins, noting that raw materials remain USD-linked. Kossan has hedged certain committed orders for Q1’26 at around RM4.15/USD through May 2026, suggesting limited near-term FX risk. Outperform with RM1.50 TP. – PublicInvest Research, Jan 20

ACCORDING to the latest advance estimates released by the Department of Statistics Malaysia (DOSM), Malaysia’s real GDP expanded by a stronger-than-expected 5.7% YoY in Q4’25, reaching RM452.5 billion. This marked an improvement from 5.2% YoY in the preceding quarter and represented the strongest quarterly growth since Q4’22. The expansion was broad-based, with most major sectors recording strong growth, particularly services and manufacturing, reflecting sustained activity across consumer related, business, and export-oriented segments. The mining sector remained the key laggard, weighing on overall growth amid production constraints and maintenance-related disruptions, partially offsetting otherwise robust sectoral performance. Historically, since the introduction of advance GDP estimates, the deviation between DOSM’s advance estimates and the final GDP figures has been relatively narrow, ranging between –0.2 percentage points and +0.4 percentage points. Notably, the advance estimates for Q3’23, Q3’24, Q1’25, and Q3’25 were spot on, matching the final published figures exactly, underscoring the generally high reliability of DOSM’s advance GDP methodology. For 2026, we maintain our GDP growth forecast range of 4.3–4.7%, supported by resilient domestic demand, underpinned by Visit Malaysia Year initiatives, steady income and employment growth, and a continued recovery in external trade performance. Any revision to our 2026 outlook will be assessed following the release of the final Q4’25 GDP figures on Feb 13. Ahead of the official GDP release, we will publish a Q4’25 economic update, incorporating the latest high-frequency GDP proxy indicators and external trade data to provide a more comprehensive assessment of Malaysia’s near-term growth trajectory. – TA Research, Jan 20

ACCORDING to media reports, the Indonesian government has opted to delay the rollout of the 50% biodiesel blend (B50) mandate this year due to technical preparedness challenges and funding limitations. To recap, Indonesia had originally planned to implement the B50 mandate in 2H’26. At the same time, the government is proceeding with plans to raise the palm oil export levy from 10% to 12.5% starting from March 1, likely as a measure to strengthen fiscal revenues and support broader policy objectives. Currently, CPO is trading at a significant premium over gasoil, estimated at roughly US$350-380/tonne. When the POGO spread is wide, palm-based biodiesel is substantially more expensive to produce than fossil diesel. To keep pump prices stable, the Indonesian government must bridge this gap using subsidies from the BPDPKS. The Indonesian government recently set the Market Index Price for biodiesel at IDR 13,631/litre for January 2026 (excluding transportation costs) and the conversion value of CPO to biodiesel at US$85/tonne. These levels would reinforce the ongoing need for substantial fiscal support, especially as domestic diesel prices remain politically sensitive. Meanwhile, we believe that the volatility in CPO prices, global crude oil, and gasoil markets could further widen the POGO spread, increasing fiscal pressure and potentially delaying B50 implementation if subsidy levels are insufficient. Key upside risks to our sector recommendation include: 1) South America’s soybean supply turns out to be lower than market expectations, 2) a more promising demand recovery story, 3) lower than-expected palm oil production, and 4) significant reductions in production costs. – TA Research, Jan 20