01/05/2026

BIZ & FINANCE FRIDAY | MAY 1, 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

Malaysia’s reserve assets total US$126.6b at end-March KUALA LUMPUR: Malaysia’s official reserve assets amounted to US$126.61 billion at the end of March 2026, compared with US$128.29 billion at end-February 2026. Bank Negara Malaysia (BNM) said other foreign currency assets amounted to US$69 million. The central bank said for the next 12 months, the pre determined short-term outflows of foreign currency loans, securities and deposits, which include, among others, scheduled repayment of external borrowings by the government and the maturity of foreign currency Bank Negara Interbank Bills, amounted to US$9.9 billion. “The net short forward positions amounted to US$23.2 billion as at end-March 2026, reflecting the management of ringgit liquidity in the money market,” BNM said in a statement yesterday. Meanwhile, projected foreign currency inflows are estimated at US$3.01 billion over the next 12 months. The only contingent short-term net drain on foreign currency assets is government guarantees of foreign currency debt due within one year, which amount to US$846.4 million. “There are no foreign currency loans with embedded options, and no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions,” BNM said. The central bank added that it also does not engage in foreign currency options against the ringgit, indicating the absence of additional contingent liabilities arising from such transactions. – Bernama

THE ringgit eased against most currencies, including the US dollar yesterday, as investors shifted towards safe-haven assets amid concerns over volatile crude oil prices. At 6pm, the local note depreciated to 3.9690/9740 against the greenback from 3.9495/9540 at Wednesday’s close. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said uncertainties over crude oil prices have heightened, with West Texas Intermediate (WTI) and Brent crude rising 1.28% and 3.44% to US$108.25 per barrel and US$122.09 per barrel, respectively. On another development, he told Bernama that the US Federal Open Market Committee (FOMC) is unlikely to cut interest rates in the near term, as its latest decision showed that some policymakers preferred to keep rates unchanged rather than move towards easing. At its third meeting of the year, the FOMC maintained the target range for the US federal funds rate at 3.5-3.75%. At the close, the ringgit traded lower against a basket of major currencies. It eased against the Japanese yen to 2.4907/4942 from 2.4709/4739 at the close on Wednesday, slid against the euro to 4.6417/6476 from 4.6197/6250 on Wednesday, and slipped versus the British pound to 5.3593/3661 from 5.3330/3391 previously. The local currency also weakened against regional peers. It depreciated against the Singapore dollar to 3.1061/1103 from 3.0909/0946 at Wednesday’s close, fell against the Thai baht to 12.1711/1932 from 12.0791/0980 on Wednesday, decreased against the Indonesian rupiah to 228.7/229.2 from 227.9/228.3, and receded against the Philippine peso to 6.45/6.47 from 6.41/6.42 previously. Ringgit closes lower on oil volatility, Fed rate decision

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0330 2.8820 3.1430 2.9410 4.7040 2.3590 3.1430 5.4320 5.1210 3.3510 59.1900 64.5400 51.8500 4.3300 0.0243 2.5330 44.2700 1.5000 6.6300 111.5500 108.3700 24.8000 1.3200 44.5800 12.8200 110.7500 N/A

3.8870 2.7660 3.0430 2.8580 4.5510 2.2720 3.0430 5.2580 4.9020

3.8770 2.7500 3.0350 2.8460 4.5310 2.2560 3.0350 5.2380 4.8870

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

104.9700 3.1080 56.6700 59.3700 49.2600

104.7700 2.9080 59.1700 49.0600 3.8200 0.0165 2.4050 40.5200 1.1400 6.0300 105.7000 102.6800 22.2000 0.9500 40.3900 10.9700 N/A N/A

4.0200 0.0215 2.4150

N/A

40.7200 1.3400 6.2300 105.9000 102.8800 22.4000 1.1500 40.5900 11.3700

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

UUE Holdings Bhd Buy. Target price: RM0.54

Plantation Neutral

IGB REIT Neutral. Target price: RM2.80

April 30, 2026: RM2.93

April 30, 2026: RM0.425

Source: Bloomberg

Source: RHB, Company data

Source: Bloomberg

PALM oil-gasoil (POGO) spread back to positive. After hitting a high of RM4,776/tonne, CPO prices have since moderated slightly. The correlation with crude oil prices has also moderated to 0.75x (from a high of 0.9x at the start of the war). With this, the POGO spread is back to being positive (CPO > gas oil), albeit at a small +US$11.70/bbl (vs -US$43/bbl at end March and +US$52/bbl in early 2026). RHB Economics’ base case (with a 60% probability) is that the ceasefire persists past two weeks, with no escalation for the rest of 2026. Should this occur, oil prices should decline moderately, and settle at mid-US$80/bbl. With this, CPO prices could settle at RM4,300-4,500/tonne, assuming a similar price correlation. The POGO spread would likely still be relatively narrow, meaning increased biodiesel mandates would still be feasible. Stock/usage ratios likely to drop to below historical averages with B50. Ignoring geopolitical winds, and assuming our base case scenario pans out, increased biodiesel mandates would still be in place, which would lead to tighter global supplies of vegetable oils. Assuming a half-year of B50 biodiesel in Indonesia, we estimate that stock/usage ratios for the 17 Oils & Fats, eight vegetable oils and PO would fall to below historical levels, which would indicate that CPO prices could be more resilient than crude oil prices, even in a “forever peace” scenario. El Nino probability has risen to 93% for Sept-Nov 2026, while the probability of a strong El Nino peaks at 51% for Nov 2026-Jan 2027. This is something worth monitoring, as a strong El Nino equals less PO supply. – RHB Research, April 30

FY27 is shaping up to be a stronger year, with management guiding for 20% revenue growth and 45% core PAT expansion. Margins recovery should be driven by a higher mix of Singapore billings as project approvals come through and execution ramps up. Malaysia accounted for RM166.7 million, largely tied to two potential data centre projects (power and fibre conduit works) and an interconnection facility for a solar farm, with the remainder comprising smaller factory/end-user contracts. The Singapore tenderbook stands at S$57.1 million (RM176 million), and includes a tender relating to Singtel and power-related subsea project. Management also expects at least RM100 million in contract extensions from ongoing Tenaga Nasional projects, providing further upside beyond the RM190 million new TNB contracts secured in FY26 (excluding extensions). Outstanding orderbook remains solid at RM536.4 million, with 51% tied to TNB projects. The manufacturing segment remains the most exposed to cost pressures, particularly resin. UUE has secured 6 months of lower cost inventory and is diversifying sourcing to cheaper import markets. Cost increases are expected to be passed through to customers. Certain TNB contracts also allow for cost renegotiation (via main contractors such as Sutera Utama or Komasi Engineering), helping offset rising expenses. Newer contracts also carry better margins, which should cushion higher operating costs. Post the recent analysts briefing, we retain our FY27 earnings, which remain ahead of management’s guidance (revenue and PAT of RM250 million and RM31-32 million), which we view as conservative. BUY with RM0.54 TP. – RHB Research, April 30

Q1’26 results met expectations, supported by resilient rental income from Mid Valley Megamall (MVM) and The Gardens Mall (TGM), alongside the first full-quarter contribution from Mid Valley Southkey (MVS). Meanwhile, Q1’26 revenue rose 52.4% YoY to RM261.3 million while net property income (NPI) increased 55.5% YoY to RM207 million. By asset, MVM, TGM, and MVS accounted for 47%, 22%, and 31% of total revenue. Average monthly rental rates also improved across all three malls, rising 6% (MVM), 8% (TGM), and 11% (MVS) YoY. Balance sheet remained comfortable, with gearing at 25% and 91% fixed-rate debt. We expect the positive growth momentum to continue across the portfolio, supported by strong occupancy and resilient tenant demand. Based on recent management checks, consumer spending has remained healthy, with no material impact seen on tenancy demand or rental negotiations so far. Management also does not expect this year’s rental reversions to be materially affected by current macro concerns. Additionally, we expect the reduction in Sales & Service Tax or SST on rental services from 8% to 6% (with effect from Jan 2026) should help ease tenants’total occupancy cost and support ongoing renewal discussions. That said, broader cost pressures and weaker discretionary sentiment remain key watchpoints if consumer confidence softens amid inflationary concerns over prolonged US Iran tensions. Separately, RM1.2 billion of debt (54% of total borrowings), matures in FY27, making refinancing cost a key item to monitor as management looks to optimise funding costs. NEUTRAL with RM2.80 TP. – RHB Research, April 30