08/06/2026

BIZ & FINANCE MONDAY | JUNE 8, 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

Rubber market seen trading sideways with downward bias KUALA LUMPUR: The rubber market is expected to trade sideways with a slight downward bias this week amid ongoing global uncertainties, particularly developments in West Asia and weather conditions in some major rubber-producing regions. Industry expert Denis Low said market sentiment remains cautious amid the ongoing conflict between the United States (US) and Iran, which has now entered its 96th day with no clear signs of a ceasefire. “The world is grappling with uncertainties and higher oil prices, leading to inevitably higher costs for everyone. “We are seeing many businesses being affected by a slowdown of sorts, and a wait-and-see attitude is certainly prevailing. Less business and higher costs are truly a burden on everyone,” he told Bernama. He also pointed to unusual weather conditions in some major rubber-producing regions, where heavy rainfall has disrupted tapping activities, curbing production and contributing to tighter supply conditions. Low highlighted forecasts by the Thai Meteorological Department, which expects heavy rainfall across 60 to 70% of Thailand due to a strong south-westerly monsoon, while also warning the public to prepare for potential flash floods and runoff. As for Malaysia, he said forecasts have also warned of thunderstorms, heavy rain and strong winds. “However, we believe that it is just a short-lived and unusual condition and not much to worry about,” he added. Low also noted that currency movements remain another key factor influencing the rubber market. – Bernama

THE ringgit is expected to trade between RM4.02 and RM4.04 against the US dollar this week as investors remain cautious amid prevailing geopolitical uncertainties. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the stalemate in the United States-Iran negotiations could keep fuel prices elevated, resulting in higher inflationary pressure. “Hence, talks of global interest rate hikes could gather some steam, leading to cautious trading in the currency markets,” he told Bernama. Mohd Afzanizam said domestic political developments, particularly the upcoming state elections in Johor and Negeri Sembilan, could also contribute to the cautious sentiment. On a Friday-to-Friday basis, the ringgit ended lower at 4.0280/0320 against the US dollar, compared with 3.9625/9670 a week earlier. The local currency traded lower against a basket of major currencies during the week. It depreciated against the British pound to 5.4233/4287 from 5.3165/3225, eased versus the Japanese yen to 2.5183/5209 from 2.4874/4904, and weakened against the euro to 4.6882/6928 from 4.6127/6180 previously. It also traded lower against Asean currencies, It slid against the Indonesian rupiah to 223.3/223.6 from 221.6/221.9, eased vis-a-vis the Singapore dollar to 3.1390/1424 from 3.1010/1048, slipped against the Thai baht to 12.3433/3605 from 12.1732/1926, and declined against the Philippine peso to 6.55/6.56 from 6.43/6.44. Ringgit likely to range between 4.02 and 4.04 against dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0930 2.9260 3.1790 2.9340 4.7460 2.4040 3.1790 5.4870 5.2070 3.4000 60.6600 65.0900 52.6500 4.3500 0.0237 2.5730 44.8300 1.5300 6.7300 113.2700 109.9000 25.9000 1.2800 44.8700 13.0400 112.4200 N/A

3.9470 2.8080 3.0790 2.8520 4.5920 2.3160 3.0790 5.3100 4.9860

3.9370 2.7920 3.0710 2.8400 4.5720 2.3000 3.0710 5.2900 4.9710

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

106.5900 3.1530 58.0800 59.8800 50.0200

106.3900 2.9530 59.6800 49.8200 3.8400 0.0159 2.4440 41.0300 1.1600 6.1400 107.3300 104.1300 23.1900 0.9100 40.6500 11.1700 N/A N/A

4.0400 0.0209 2.4540

N/A

41.2300 1.3600 6.3400 107.5300 104.3300 23.3900 1.1100 40.8500 11.5700

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

Mega First Corporation Bhd Outperform. Target price: RM4.95

Velesto Energy Bhd Buy. Target price: RM0.35

Lagenda Bhd Hold. Target price: RM1.54

June 5, 2026: RM1.40

June 5, 2026: RM2.96

June 5, 2026: RM0.30

Source: Bloomberg, TA Research

Source: Bloomberg, Phillip Capital Research

Source: PublicInvest Research

VELESTO has secured a Letter of Award from Northern Gulf Petroleum Pte Ltd (NGP) for the provision of the NAGA 6 jack-up drilling rig and associated services. The contract comprises drilling services for four infill wells and three exploration wells, with an option for an additional two exploration wells. The campaign is scheduled to commence in 3QFY26 and is expected to run for approximately five months. Although the contract value was not disclosed, the award is broadly in line with management’s earlier guidance that NAGA 6 was in advanced negotiations for a short-term drilling programme in Southeast Asia. The contract further enhances VELESTO’s rig utilisation visibility and extends earnings visibility into FY26F. In the absence of a disclosed contract value, we estimate the implied day charter rate (DCR) at approximately US$100k/day, based on prevailing market rates for the jack-up rigs in the region. This is below our previous FY26F DCR assumption of US$120k/day for NAGA 6 and suggests a softer earnings contribution than previously anticipated. Nevertheless, the award reduces idle time risk for NAGA 6 and reinforces demand for premium jack-up rigs in Southeast Asia. We expect near-term contracts to be secured around current market levels, which supports a more conservative DCR outlook. Nevertheless, continued utilisation strength and tightening rig availability could support a gradual recovery in DCRs over time. The optional wells provide potential upside to contract duration and earnings, while the award enhances FY26 utilisation and backlog visibility. We maintain our BUY recommendation with a higher TP of RM0.35. - TA Research, June 5

WE remain positive on MFCB’s long-term prospects, underpinned by i) stable recurring earnings from the Don Sahong hydropower, ii) resilient packaging business, and iii) potential new Renewable Energy (RE) project wins in the region. We believe investor sentiment towards MFCB is currently weighed down by uncertainty around Edenor. Once the judicial management process concludes and overhang concerns subside, valuation re rating potential could emerge given the group’s strong cash generation and stable RE earnings profile. The RE division continues to anchor group profitability with Don Sahong as the largest earnings contributor. Management highlighted that the group is actively pursuing additional RE opportunities in Laos, Cambodia and Sarawak, such as i) hydropower projects, ii) battery energy storage systems, iii) Corporate Renewable Energy Supply Scheme, and iv) potential pumped-storage hydropower projects. Management reiterated its investment discipline, targeting projects with an IRR above 9%. Projects in Laos and Cambodia are more attractive, with expected IRRs of 14%-15%, compared with local large-scale solar projects, which yield only 5%- 7%. The group has expressed interest in participating in Sarawak’s cascading hydropower developments, comprising five dams with capacities ranging from 300MW to 800MW. Management indicated that resin costs have risen sharply following the geopolitical tensions in the Middle East, although cost pressures are expected to be gradually passed through to customers via progressive ASP hikes from July-August 2026 onward. Maintain Outperform with an unchanged SOP-based TP of RM4.95. - PublicInvest Research, June 5

1Q26 earnings came in softer QoQ, primarily due to seasonal disruption during the festive period, with management reaffirming its FY26 core profit guidance of RM260m. Confirmed sales rose 48% YoY to RM372m (1Q25: RM252m), driven by La Lumiere, Johor (RM116m) and Lagenda Ardea, Selangor (RM36m). Meanwhile, unbilled sales reached a record RM1.7bn (+86% YoY), providing near term earnings visibility. Management also flagged a 1-2% increase in construction cost due to Middle East-related inflationary pressures. That said, we maintain our cautious stance as prolonged conflict risks could further weigh on construction execution timelines. Lagenda YTD sales launch stands at RM605m GDV, with further RM2bn launch pipeline in 2H26, including 2 new township entries in Negeri Sembilan (RM401m GDV) and Sungai Petani, Kedah (RM291m GDV). We expect 2027 revenue to rise 34% YoY as projects enter the steeper S-curve recognition. That said, margins could see mild pressure in the near term due to higher operating expenses associated with early-stage township development, as an ecosystem akin to Perak takes time to build. Separately, management does not foresee a material slowdown due to impending state and federal elections, given that on-the-ground development has already reached an advanced stage across affected projects. While earnings visibility is underpinned by record unbilled sales and a steady launch pipeline, we prefer to see clearer evidence of construction execution before turning more positive. Key risks include stronger- or weaker-than-expected property sales, faster- or slower-than-expected project launches, and higher- or lower than-expected building material costs. Maintain HOLD and RM1.54 TP. - Phillip Capital Research, June 5