06/04/2026

BIZ & FINANCE MONDAY | APR 6, 2026

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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

Rubber market to rise this week on supply concerns

THE ringgit rebounded to the 4.02 level against the US dollar at the close last Friday, as the Iran-Oman energy transit talks eased concerns over supply disruptions. At 6pm, the local currency strengthened to 4.0295/0350 against the greenback from 4.0365/0430 recorded at Thursday’s close. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US dollar-ringgit is currently hovering at RM4.0305, with the ringgit gaining 0.23% against the greenback, while the US Dollar Index (DXY) is oscillating below 100 points. “The ringgit seems to have gained some ground against the US dollar as there are signs of the reopening of the Straits of Hormuz, which eases tension in the market,” he told Bernama. Iranian state news agency IRNA reported that Iran and Oman are drafting a protocol to “monitor transit” through the Straits of Hormuz, which aims to facilitate and ensure safe passage, as well as to provide better services to ships that pass through. At the close, the ringgit traded mostly higher against a basket of major currencies. It traded better versus the Japanese yen at 2.5247/5285 from 2.5295/5337 at the close on Thursday, and improved vis-a-vis the euro to 4.6513/6576 from 4.6517/6592 on Thursday, but fell against the British pound to 5.3326/3399 from 5.3278/3364 previously. At the same time, the local currency traded mixed against Asean currencies. It was marginally higher versus the Singapore dollar at 3.1341/1389 from 3.1364/1417 at Thursday’s close but edged down against the Philippine peso to 6.68/6.71 from 6.66/6.68 registered on Thursday. Ringgit returns to 4.02 vs dollar on easing energy concerns

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

KUALA LUMPUR: The rubber market is expected to trend higher this week boosted by higher demand for the commodity amid supply disruption due to the West Asia crisis, an expert said. Industry expert Denis Low said the war in West Asia continues, causing disruption to industry, commerce and the general well-being of all humanity. “While the oil and gas supply is choked up in the Strait of Hormuz, a magnified collateral damage is also taking place to all industries, which will cause the factories to be eventually shut,” he told Bernama. Meanwhile, Low said the rubber trees are wintering and may end in end-April or early May, hence shortages of the commodity is at the tail end and better productivity is anticipated in the weeks ahead. “For the moment, the resulting shortage is exacerbated by better demand because of the war. Thus, the market will be volatile with an apprehensive outlook caused by the war,“ he said. On the other hand, Low mentioned that the Thai Meteorological Department has forecast extreme heat, hazy skies and isolated thunderstorms with gusty winds in several regions, while the weatherman in Malaysia issued a fresh thunderstorm warning for large parts of the country. He said the yo-yo oil prices and the volatile US dollar may have an impact on the prices and demand as well, representing uncertainties and may warrant caution at the same time. The Kuala Lumpur rubber market was closed on April 3 for Good Friday and resumes today (Monday). – Bernama Economy PMI: Solid Q1, outlook clouded by geopolitics

1 US Dollar

4.1045 2.8470 3.1880 2.9400 4.7310 2.3500 3.1880 5.4260 5.1610 3.4110 59.8400 64.9000 52.7800 4.5000 0.0252 2.5880 43.2000 1.5300 6.8900 113.4800 110.2200 25.0800 1.3700 44.8000 13.1200 112.7300 N/A

3.9575 2.7300 3.0860 2.8570 4.5750 2.2620 3.0860 5.2500 4.9390 3.1630 57.2800 59.6900 50.1300 4.1800 0.0223 2.4680 39.7200 1.3600 6.4800 107.7300 104.6300 22.6400 1.1900 40.7400 11.6300 106.8400 N/A

3.9475 2.7140 3.0780 2.8450 4.5550 2.2460 3.0780 5.2300 4.9240

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

106.6400

2.9630

N/A

59.4900 49.9300 3.9800 0.0173 2.4580 39.5200 1.1600 6.2800 107.5300 104.4300 22.4400 0.9900 40.5400 11.2300 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

Telecommunications Neutral

V.S. Industry Bhd Neutral. Target price: RM0.17

March 3, 2026: RM0.18

Source: S&P Global, TA Securities

Source: MCMC

Source: PublicInvest Research

WE are positive on the long-awaited rollout of the Jalinan Digital Negara Phase 2 (JP2) project. MNOs and tower infrastructure providers stand to benefit from improved coverage and connectivity, with stronger contracting works for the latter following the lull caused by 5G policy uncertainty. On March 31, the regulator issued requests for proposals (RFPs) for the improvement of broadband and internet connectivity nationwide under JP2. The JP2 rollout was to have commenced in 2023, but execution issues and delays in JP1 (notably in East Malaysia) delayed its implementation with an overhaul of the process. The government had allocated RM780 million under Budget 2026 for JP2, which utilises fit-for-purpose technologies to overcome challenges associated with traditional tower infrastructure. The target is to achieve 100% internet penetration, while the number of fibre premises passed has exceeded the 9 million target (end-January: 9.82 million). The application of broadband wireless access (BWA) using satellite technology via a neutral host platform allows seamless mobile data connectivity over Wi-Fi across MNOs. 1,000 sites (of 2,700) assigned in first batch; East Malaysia has biggest allocations. BWA sites made up 64% of the initial allocation with traditional sites (including small cells) accounting for the rest. As expected, East Malaysia dominated site allocations (69%). Similar to JP1, registered bidders are only allowed to bid for a single part (Part 1 or 2) of either scope with a 12-month implementation period for traditional sites (BWA: 6 months). The regulator has also enforced stricter conditions on the rollout following lapses in JP1. – RHB Research, April 3

MALAYSIA’S manufacturing sector rebounded in March, signalling a resumption of momentum in the final month of 1Q26 after contracting in the previous month. The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose above the neutral threshold to 50.7, from 49.3 in February. Overall, the sector has improved in four of the past five survey periods, with the latest expansion marking the strongest pace of growth in nearly four years. In essence, while operating conditions strengthened on the back of firmer production and a modest pickup in employment, the data also pointed to a sharp rise in inflationary pressures. According to the survey, output increased in March at the fastest pace since December 2021, supported by stronger demand and new tender wins. Employment in goods-producing firms also rose slightly, reversing two months of decline. Total new business moderated for a second consecutive month in March, with the decline remaining mild and similar to the previous month. Meanwhile, external demand softened slightly, marking the first drop in new export orders in three months. Subdued demand led firms to reduce purchasing activity in March, marking the first decline in nine months. Although the drop was moderate, it was the steepest in nearly a year. Supplyside pressures also remained, with limited container availability and higher raw material and delivery costs — partly linked to the ongoing Middle East conflict — contributing to the pullback. March data also showed a renewed rise in supply chain pressures, with vendor performance deteriorating sharply, the worst since May 2022. – TA Research, April 3

VS posted a core net loss of RM31 million in Q2’26, reversing from a core net profit of RM7.4 million in Q2’25, largely due to a significant decline in overall production capacity utilisation. Notably, one of the Philippines’ production models was disrupted in the past due to insufficient of raw materials from its key supplier. Operations are expected to resume gradually from Feb 2026 onwards. In addition, the Philippines’ cost structure, which skewed towards the high fixed cost (80: 20), also dragged down the operations. A successful ramp up of its second model is required to reach the breakeven level of RM50m/quarter for the Philippine operations. On a more positive note, VS has secured 10 new models from its key customer, benefiting from the closure of competing contract manufacturers. Four of these new models are scheduled to commence production in Q4’26. At this stage, however, these wins are expected to primarily offset the weakness in existing model volumes rather than drive meaningful incremental earnings growth. We maintain a cautious stance on VS’s near-term outlook, given the increasingly clouded trade environment stemming from the escalation of Middle East geopolitical tensions. The ongoing conflict involving Iran and Gulf states has amplified global risk aversion and exacerbated supply chain disruptions, with no clear resolution in sight. Against this backdrop, we expect FY26 earnings to remain under pressure on a YoY basis. That said, the group remains committed to lean manufacturing, operational efficiency, and disciplined cost control as it works towards a gradual recovery in profitability over the medium term. Neutral with RM0.17 TP. – PublicInvest Research, April 3