12/05/2026

BIZ & FINANCE TUESDAY | MAY 12, 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

Foreign funds turn net buyers on Bursa with RM95m inflow KUALA LUMPUR: Foreign investors turned net buyers of equities last week after three weeks of net selling, with a net inflow of RM95.2 million against a net outflow of RM160.8 million in the preceding week, according to CIMB Securities. This raised their year-to-date (YTD) 2026 net inflow to RM3.1 billion (2025: net outflow of RM22.6 billion), the stockbroking firm said in its fund flow report for the week ended May 8, 2026. “Foreign investors’ largest net buying was concentrated in the technology (RM119.7 million), financial services (RM117.7 million), and industrial (RM67.2 million) sectors, “Net selling was concentrated in the consumer (RM68.5 million), utilities (RM50.6 million), and construction (RM47.9 million) sectors,” it said. On local institutional investors, CIMB Securities said they remained net buyers for a fourth week, though net inflows grew sharply week-on-week to RM99.6 million, trimming their YTD net selling position to RM2.0 billion (2025: net inflow of RM19.4 billion). It said local retail investors became the largest net sellers of RM301 million, reversing the net buy of RM167.1 million in the preceding week and increasing their YTD net outflow to RM1.8 billion (2025: net inflow of RM3.1 billion). Proprietary investors turned net buyers of RM106.2 million after net selling RM16.4 million in the preceding week, raising their YTD net inflows to RM664.6 million. “Local institutional investors recorded their largest net buying in the utilities (RM276.7 million), construction (RM86 million), and property (RM32.9 million) sectors, while their largest net selling was seen in the industrial products (RM96 million), financials (RM54 million), and plantation (RM40.4 million) sectors.” Bernama

THE ringgit closed higher against regional peers and was mixed versus major currencies yesterday as investors monitored developments in the United States-Iran negotiations and upcoming US-China talks. At 6pm, however, the ringgit weakened against the US dollar to 3.9220/9260 from 3.9185/9230 at last Friday’s close. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market attention remained focused on the United States-Iran negotiations, which had shown little progress. He said investors were also awaiting the high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing on May 14-15, 2026. “Meanwhile, the US Federal Reserve (Fed) appears unlikely to cut interest rates in the near term, while the appointment of new Fed chairman Kevin Warsh will also be closely monitored, particularly his inclination to balance growth and inflation,” he told Bernama. At the close, the ringgit traded mixed against a basket of major currencies. It appreciated against the Japanese yen to 2.4955/4983 from 2.5010/5040 and strengthened versus the British pound to 5.3331/3383 from 5.3354/3416, but eased against the euro to 4.6150/6197 from 4.6121/6174 at last Friday’s close. The local currency rose against the Singapore dollar to 3.0887/0921 from 3.0910/0948, strengthened versus the Thai baht to 12.0900/1083 from 12.1640/1844, gained against the Indonesian rupiah to 225.2/225.5 from 225.4/225.7, and advanced against the Philippine peso to 6.41/6.42 from 6.46/6.47 previously. Ringgit ends higher against regional peers, mixed vs majors

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

3.9940 2.8970 3.1420 2.9090 4.6920 2.3780 3.1420 5.4210 5.1540 3.3050 58.9300 64.3700 51.3900 4.3100 0.0240 2.5590 44.3700 1.4900 6.6800 110.4000 107.2600 25.1200 1.3000 44.4500 12.8800 109.6700 N/A

3.8470 2.7800 3.0420 2.8260 4.5380 2.2900 3.0420 5.2460 4.9320 3.0770 56.4200 59.2000 48.8100 4.0000 0.0212 2.4400 40.7900 1.3300 6.2900 104.8000 101.8300 22.6800 1.1400 40.4600 11.4100 103.9100 N/A

3.8370 2.7640 3.0340 2.8140 4.5180 2.2740 3.0340 5.2260 4.9170

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

103.7100 2.8770 59.0000 48.6100 3.8000 0.0162 2.4300 40.5900 1.1300 6.0900 104.6000 101.6300 22.4800 0.9400 40.2600 11.0100 N/A 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

Real Estate Sector Overweight

Gamuda Bhd Outperform. Target price: RM5.60

Kossan Rubber Industries Bhd Outperform. Target price: RM1.36

May 11, 2026: RM1.27

May 11, 2026: RM4.51

Source: PublicInvest Research

Source: PublicInvest Research

GAMUDA, together with Taiwan-based Shang Ting Construction, has been awarded a NTD26.39bn (RM3.3bn) contract by the Kaohsiung City Government Mass Rapid Transit Bureau for the construction of the Xiaogang-Linyuan MRT Line (Red Line RLC02). Under an unincorporated Joint Venture (JV), Gamuda holds a 70% stake, and Shang Ting holds the remaining 30%, giving Gamuda a share of the contract value worth NTD18.48bn (RM2.31bn). The 7.4-year project includes three underground stations, one elevated station, 3.88km of twin-bore tunnels, and six cross passages. Key risks such as labour shortages and fuel price fluctuations are partly mitigated by a price variation mechanism. This new job win brings Gamuda’s total outstanding orderbook to an estimated RM51.6bn. The contract was awarded by the Taiwan Kaohsiung City Government Mass Rapid Transit Bureau, the city’s MRT authority. The JV, serving as the main contractor over a seven year and five month timeline, will deliver three underground stations (RL4, RL5, RL6), one elevated station (RL7), 3.88km of underground twin bound railway track, and 6 cross passages. With this latest addition, cumulative YTD new contracts amount to RM7.8bn, which increases the outstanding orderbook by 4.7% to RM51.6bn. Assuming pre-tax profit of 8% and a corporate tax rate of 20%, this project is expected to contribute approximately 1.0% to annual net profit over its 7.4-year duration. We make no adjustment to our earnings estimate, as this job win falls within our existing RM20bn orderbook replenishment assumption for CY26. We retain our Outperform call on Gamuda with unchanged SOTP-based TP of RM5.60. – PublicInvest Research, May 11

WE continue to view Kossan Rubber’s (Kossan) FY26F earnings outlook as defensive despite a challenging industry backdrop, supported by disciplined cost control, a strong balance sheet and gradual shift towards higher-value products. Following our recent meeting with management, we maintain our FY26-28F forecasts as near-term earnings should benefit from higher ASPs amid Middle East-driven raw material volatility, particularly in 2QFY26. However, structural cost pressures are likely to intensify in 2HFY26 due to higher feedstock costs. We believe the group’s automation upgrades and cleanroom glove expansion should help cushion margin pressure over the medium term. Episodic ASP recovery to improve 2QFY26 earnings. Generic glove ASPs have risen to ~US$29/1k pcs (vs ~US$16/1k pcs YoY; ~US$14/1k pcs QoQ), driven by sharp raw material volatility following the Middle East conflict. Management guides every US$100 increase in raw material cost raises production cost by ~US$7/1k pcs. We expect temporary ASP tailwinds to support 2QFY26 earnings. However, we caution against extrapolating current pricing into a structural upcycle given global supply capacity (>500bn pcs) still materially exceeds demand (<400bn pcs). We also do not expect recent WHO-reported hantavirus developments to materially alter glove demand dynamics at this stage. Structural cost gap vs China remains key constraint. Malaysia’s gas pricing mechanism carries a six-month lag, implying further cost impact from Oct-26 after the Middle East tension. Management estimates energy costs could add ~US$1/1k pcs disadvantage vs China’s lower coal-based energy costs. In response, Kossan is prioritising operational efficiency over capacity expansion, including automated packaging lines that could reduce ~140 workers. . Maintain Outperform. TP RM1.36. – PublicInvest Research, May 11

Source: Company data, RHB Research

THE sector’s recent share price recovery indicates that investors have looked past the impact of the US-Iran conflict. Share prices corrected in March-April on the expectation of margin compression. However, unlike other sectors, property developers typically have better flexibility to reconfigure their product designs, build-ups, materials and pricing in order to mitigate the impact on margins. Despite market headwinds, developers are moving ahead with their asset monetisation exercises. Value-unlocking efforts, as mentioned last quarter, remain an important catalyst for the sector. The three major developers - including SDPR and SP Setia - are collectively listing property assets worth RM13bn after injecting them into REITs, over the next two years. Demand in Iskandar Malaysia still strong. The MYR has strengthened, yet rising inflationary pressure in the region remains a push factor to attract travellers from Singapore to spend and/or stay in Iskandar Malaysia, at least over the medium term. In addition, major landowners such as UEM Sunrise, KSL and Crescendo are good RNAV plays. High-end properties in premium areas should sell well, eg Mont’ Kiara, Damansara Heights, KLCC and select spots at Iskandar Malaysia are seeing strong demand, while ASPs for units at new launches (ParkCity Damansara PJ and Pavilion Damansara) are holding up well. OVERWEIGHT. Sime Darby Property and Eco World Development are top picks. – RHB Research, May 11