14/04/2026

BIZ & FINANCE TUESDAY | APR 14, 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

New MSAP implementation likely by Nov-Dec 2026: CIMB KUALA LUMPUR: The Malaysian Communications and Multimedia Commission (MCMC) may implement the new Mandatory Standard on Access Pricing (MSAP) between November and December 2026, said CIMB Securities Sdn Bhd. MSAP is a regulatory framework issued by the MCMC that sets mandatory wholesale prices for telecommunications services. In a note yesterday, CIMB Securities said that on April 3, the MCMC issued the Public Inquiry (PI) Paper on the Review of Access List (AL), which seeks to determine which facilities and services are to be regulated in terms of access. “Concurrently, MCMC also issued a PI Paper on the Review of Mandatory Standard on Access (MSA), which aims to assess the non-price terms and conditions relating to access to services and facilities on the AL. “MCMC is inviting submissions by May 19, 2026, and will publish its PI reports by June 18 (subject to a maximum 30-day extension), setting out the findings from the inquiries,” it said. It said the MCMC will issue the Commission Determination on AL and MSA within 30 days (by July 18, or latest by Aug 17). “Based on this timeline, we think MCMC may publish its PI Paper on the Review of MSAP by August or September 2026. “Assuming no extensions, this process could take 3-4 months to complete, with the new MSAP implemented possibly by Nov-Dec 2026 (or 12 months earlier than we had previously projected).” CIMB Securities has maintained an ‘Overweight’ call on the telecomunications sector. “Our top pick is Telekom Malaysia Bhd, although we acknowledge there may be some market jitters until there is full clarity on the new MSAP,” it added. – Bernama

THE ringgit closed lower against the US dollar yesterday as rising uncertainties in West Asia weighed on sentiment, said an analyst. At 6pm, the local note slid to 3.9735/9805 against the US dollar from 3.9625/9680 at last Friday’s close. Reports said US-Iran negotiations failed to reach an agreement on Sunday after hours of talks in Islamabad, the capital of Pakistan, prompting US President Donald Trump to announce a blockade of the Strait of Hormuz. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said stalled US-Iran talks over the weekend and the planned blockade of the Strait of Hormuz have raised concerns over potential oil and gas supply shortages, which may further pressure inflation. “The subsequent announcement by Trump to block the Straits of Hormuz has resulted in concern that the shortages in oil and gas supplies will exert further pressure on inflation going forward,” he told Bernama At the close, the ringgit traded mostly lower against a basket of major currencies. It decreased against the British pound to 5.3360/3454 compared with 5.3248/3322 and weakened against the euro to 4.6434/6516 from 4.6401/6465, while it improved against the Japanese yen to 2.4875/4920 from 2.4882/4918 at last Friday’s close. It slipped versus the Singapore dollar to 3.1145/1205 from 3.1093/1139 and was down against the Indonesian rupiah to 232.2/232.8 from 231.6/232.0. Meanwhile, the local note rose against the Thai baht to 12.3202/3503 from 12.3289/3525, while it was flat against the Philippine peso at 6.60/6.62. Ringgit lower vs greenback as West Asia tensions weigh

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0450 2.8520 3.1610 2.9080 4.7180 2.3540 3.1610 5.4110 5.1220 3.3580 59.4600 64.7300 52.0300 4.4300 0.0247 2.5460 43.4300 1.4900 6.8400 111.8300 108.6400 25.2300 1.3500 44.5900 13.0200 111.1000 N/A

3.8990 2.7360 3.0610 2.8270 4.5650 2.2670 3.0610 5.2370 4.9030 3.1140 56.9400 59.5500 49.4300 4.1100 0.0218 2.4280 39.9400 1.3300 6.4300 106.1600 103.1300 22.7800 1.1700 40.6000 11.5400 105.2900 N/A

3.8890 2.7200 3.0530 2.8150 4.5450 2.2510 3.0530 5.2170 4.8880

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

105.0900 2.9140 56.9400 59.3500 49.2300

3.9100 0.0168 2.4180

N/A

39.7400 1.1300 6.2300 105.9600 102.9300 22.5800 0.9700 40.4000 11.1400

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 Sector Overweight

IOI Properties Group Bhd Buy. Target price: RM4.47

Plantation Sector Overweight

April13, 2026: RM3.55

Source: Bloomberg, TA Research

Source: Bloomberg, TA Research

Source: DOSM, TA Research

FURTHER clarity is emerging on IOIPG’s long-awaited REIT plan, first announced in August 2025, with the proposal now starting to take clearer shape. The group intends to inject nine investment properties, comprising one retail mall, six hotels and two office assets, into the proposed IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT) for a total consideration of RM7.58bn. The portfolio includes IOI City Mall, Putrajaya Marriott Hotel, Le Méridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur, Courtyard by Marriott Penang, IOI City Towers and PFCC Towers. The disposal will be satisfied via a combination of 5.5bn REIT units at an indicative issue price of RM0.90 per unit and RM2.65bn in cash, the latter to be funded via medium-term notes at the REIT level. This structure allows IOIPG to unlock value from its stabilised assets while retaining exposure through equity ownership. Upon listing, up to 2.2bn units (40% of total units) will be offered to investors, comprising 27.6% for institutional investors and 12.4% for retail investors. IOIPG is expected to retain a c.60% stake post listing, ensuring continued earnings contribution via dividend income and management fees. The group is targeting submission to regulators by 2QCY26, with completion expected by 4QCY26. The cash proceeds from the proposed disposal and the proposed offering from IOIPG REIT (assuming issue price of RM0.90 per unit) are estimated at approximately RM4.6bn, of which around 66% will be used to pare down borrowings within 12 months, with the remaining 34% earmarked for development and investment expenditure. We maintain our Buy call and raise our TP to RM4.47. – TA Research, April 13

AS a net fuel importer, Malaysia is particularly exposed to the US– Iran conflict, with an estimated ~40% of its refinery feedstock sourced from the Middle East via the Strait of Hormuz. The disruption has triggered a sharp increase in global fuel prices. Notably, retail diesel prices have surged by over 200% from RM2.15 in early February 2026 to RM6.72 in midApril 2026. Beyond the surge in diesel prices, building material costs have also trended higher, albeit at a more gradual pace. As of March 2026, the average selling price (ASP) of Ordinary Portland Cement rose by 9.1% YoY, while ready-mix concrete (RMC) recorded a 7.9% YoY increase, reflecting ongoing cost pass-through from surge in energy and transportation inputs. In contrast, steel bar ASPs declined on a YoY basis, largely due to persistent oversupply from China alongside relatively stable coking coal prices, which have helped to cushion the rise in production costs. Following the removal of diesel subsidies for tipper trucks under SKDS 2.0 on 10 June 2024, contractors are required to purchase diesel at market prices. However, with diesel prices now more than doubled, cost pressures have intensified significantly. This leaves contractors fully exposed to fuel price movements, leading to higher transportation and operating costs. As a result, contractors face an increased risk of margin compression. Based on our estimates, a 10% increase in both diesel and building material prices would raise total construction costs by approximately 1.2% for contractors under our coverage. We view that the spike in construction costs remains manageable for major contractors under our coverage. Maintain Overweight on the sector. – TA Research, April 13

ACCORDING to the Malaysian Palm Oil Board (MPOB), CPO production in March increased 7.2% MoM to 1.38mn tonnes, reflecting a recovery from February’s shorter working month and festive disruptions. However, the production was marginally lower on a YoY basis, declining 0.8%, suggesting that supply recovery remained gradual. Overall, the production came in slightly above market expectations of around 1.34mn tonnes. Meanwhile, stockpiles declined sharply by 16.1% MoM to 2.27mn tonnes. This was mainly driven by a strong rebound in exports, which surged 40.7% MoM to 1.55mn tonnes, broadly in line with market expectations. On the demand side, domestic usage eased 10.9% MoM to 329k tonnes, while imports continued to decline, falling 12.4% MoM to 67k tonnes. On a cumulative basis, 1Q2026 production rose 11.1% YoY to 4.24mn tonnes, indicating firmer supply compared with last year. Exports also increased 29.1% YoY to 4.08mn tonnes while domestic usage grew 3.6% YoY to 1.09mn tonnes. Imports declined 34.9% YoY to 180k tonnes, reflecting reduced reliance on external supply. Overall, we see positive sign in March MPOB data as supportive for CPO prices in the near term. The sharp decline in inventories, driven by stronger export demand, more than offset the recovery in production. With stock levels normalising and demand momentum improving, the supply demand balance appears to be tightening, which should provide firm support to CPO prices going forward. Overall, we continue to view the current environment as supportive for palm oil, with elevated crude oil prices effectively putting a floor under CPO prices. This reinforces our OVERWEIGHT stance on the plantation sector, as we believe the risk-reward remains skewed favourably to the upside. – TA Research, April 13