13/03/2026

BIZ & FINANCE FRIDAY | MAR 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

MN Holdings wins RM216m data centre substation job KUALA LUMPUR: MN Holdings Bhd’s wholly owned subsidiary MN Utilities Engineering Sdn Bhd has accepted a letter of award (LoA) for a RM216 million project to implement a consumer substation for a data centre in southern Peninsular Malaysia. In a filing with Bursa Malaysia yesterday, the company, which is principally involved in the provision of infrastructure utilities construction services and solutions, said the LoA, dated Feb 1, was awarded by a customer providing infrastructure for hosting, data processing services and related activities. The identity of the customer was not disclosed, as the agreement between the two parties is subject to a non disclosure clause. Under the contract, the scope of works includes the design, construction, installation, testing and commissioning of the consumer substation (Plot 2). This would also encompass the supply of labour, equipment and materials for construction works within the site boundary, as well as the connection of high-voltage cables between the respective substation sites. The contract is scheduled to commence on Feb 1 and is expected to be completed by Sept 30. According to the filing, the LoA would not have any effect on the company’s issued share capital and the shareholding of its substantial shareholders. The project is expected to contribute positively to the group’s future earnings and net assets per share upon commencement. The company also said that aside from normal operational risks, it is not aware of any other risk factors arising from the LoA. – Bernama Economy Labour market softens, stability intact

THE ringgit ended lower against the US dollar at the close yesterday on concerns over oil supply disruptions amid the war in Iran. At 6pm, the local currency eased to 3.9240/9280 against the greenback from Wednesday’s close of 3.9175/9230. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the International Energy Agency’s decision to release oil reserves has failed to calm the markets. The IEA recommended on Wednesday to release 400 million barrels of oil from stockpiles, the largest such move in its history, in a bid to rein in oil prices. “The Iranian government has set certain conditions for peace talks, but they seem like a tall order for the US and Israel. This suggests the ongoing military conflict could be protracted,“ he told Bernama. The ringgit traded lower against other major currencies at the close. It was flat against the Japanese yen at 2.4720/4746 from 2.4719/4755 at Wednesday’s close and marginally down against the British pound at 5.2554/2608 from 5.2545/2619. But it was firmer against the euro at 4.5361/5408 from 4.5412/5475. The local currency traded mixed against most Asean currencies. It gained against the Thai baht to 12.3257/3452 from 12.3386/3637 and improved against the Philippine peso to 6.60/6.62 from 6.62/6.64 on Wednesday. However, it edged down against the Singapore dollar to 3.0786/0820 from 3.0754/0800 and was marginally lower against the Indonesian rupiah at 232.2/232.6 from 232.0/232.4 previously. Ringgit eases against US dollar as oil supply concerns persist

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0005 2.8600 3.1270 2.9320 4.6080 2.3610 3.1270 5.3430 5.1370 3.3290 58.4700 63.2300 51.5100 4.4200 0.0247 2.5270 42.3000 1.4900 6.8300 110.6200 107.4200 24.9300 1.3500 44.4100 13.0300 109.8600 N/A

3.8545 2.7450 3.0290 2.8500 4.4580 2.2750 3.0290 5.1720 4.9180

3.8445 2.7290 3.0210 2.8380 4.4380 2.2590 3.0210 5.1520 4.9030

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

104.1100 3.0870 55.9800 58.1600 48.9300

103.9100 2.8870 57.9600 48.7300 3.9000 0.0168 2.4000 38.6800 1.1300 6.2300 104.8200 101.7800 22.3000 0.9800 40.2400 11.1500 N/A N/A

4.1000 0.0218 2.4100

N/A

38.8800 1.3300 6.4300 105.0200 101.9800 22.5000 1.1800 40.4400 11.5500

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

Construction Overweight

Al-Salam REIT Buy. Target price: RM0.59

March 12, 2026: RM0.485

Source: DOSM, TA Research

Source: Bloomberg

Source: Maybank Investment Bank

DATA centre (DC) space to remain active. According to Tenaga Nasional, it has seven DC projects with electricity supply agreements (ESAs) as of end Dec 2025 in the country with a combined maximum electricity demand of 1.2GW. Assuming a conservative power usage effectiveness ratio of 1.4, this should translate to around 857MW of DC capacity (which could be worth RM17 billion of construction value, based on a RM20 million construction cost per MW benchmark). While the federal government wants to restrict the entry of new DCs that are not artificial intelligence (AI)-related – this move will potentially attract high-quality DC investments in general, in our view. The outcome of tenders related to the Penang Light Rail Transit (LRT) system works (estimated at RM3-4 billion) and the Segment 2 of the Penang LRT – connecting KOMTAR and Penang Sentral (estimated at RM5-6 billion) – could see awards being announced in 2H’26. Meanwhile, the Johor state government proposed in February that the Autonomous Rapid Transit project, which may cost RM6-7 billion, to be implemented on important alignments first if the project receives approval from the federal government. A prolonged impact from the Middle East conflict could exert further upward pressure on cement prices from a logistical cost angle in terms of fuel prices. Recall that cement prices already faced an increase amid the crackdown on heavy vehicles. For example, cement players such as Hume Cement provided incentives to drivers and raised its ASP by 10% to offset the logistical cost increase to manage the additional trips required. – RHB Research, March 12

MALAYSIA’s labour force participation remained firm at 70.9% in January 2026, with employment continuing to rise and unemployment staying low. The labour force continued to trend up during the month, increasing by 0.4% YoY (0.1% MoM) to 17.28 million persons. Total employment increased marginally by 0.5% YoY (+0.04% MoM) to 16.77 million persons in January 2026, underpinned by broad-based job creation across most major economic sectors. The Services sector continued to record increases in the number of employed persons, largely in Wholesale & retail trade, Accommodation and food & beverage service activities, as well as Transportation & storage activities. The Agriculture, Manufacturing, Construction and Mining & quarrying sectors also posted a growth in employment. The employees’category made up 75.1% of the total employed persons and recorded an increase of 0.2% YoY, reaching 12.59 million persons. Similarly, the number of own-account workers also improved, with a rise of 0.6% YoY to 3.13 million persons. Details also showed that unemployed persons declined by 4.5% YoY to 509.6k in January 2026, compared with 533.8k recorded a year earlier. Hence, the unemployment rate remained steady at 2.9% during the month, indicating broadly stable labour market conditions. On a month-on-month basis, the number of unemployed persons increased marginally by 0.3% from 507.9k. Hiring slowed during the month due to high base effects from last year’s strong job gains and seasonal normalisation after year end hiring. – TA Research, March 12

RECONFIGURATION efforts at KOMTAR JBCC focus on underperforming spaces, particularly the former food court and supermarket areas, repositioned towards higher-value tenants such as lifestyle dining and travel-oriented retail to capture upcoming RTS-driven commuter traffic. Total AEI stands at ~RM50 million over two years, including ~RM15 million for a pedestrian bridge linking the mall to the RTS station. While tenant exits and renovation works may cause temporary FY26 income volatility, rental contributions should strengthen as spaces come onstream. Looking ahead, the Johor Bahru–Singapore RTS Link, targeted to commence operations in Jan 2027, as a key catalyst for the portfolio. The planned pedestrian bridge will directly integrate the mall into the cross-border commuter network. We believe this connectivity to enhance shopper traffic and strengthen demand from retail and service-oriented tenants. Notably, occupancy at KOMTAR JBCC stands at ~71%, reflecting ongoing reconfiguration works, but management targets full stabilisation closer to 2027 (target occupancy >80%) as the RTS catalyst approaches. The recent sukuk issuance has strengthened funding visibility, increasing the proportion of fixed-rate borrowings to ~72% (previously 100% floating), helping stabilise financing costs. Average debt maturity has been extended to ~3.7 years, while average financing cost stands at ~5.8% (FY24: ~6%). That said, gearing remains elevated at ~48%, which may constrain near term acquisition-led growth under the DISRUPT27 strategy. BUY with RM0.59 TP. – Maybank Investment Bank, March 12