22/06/2026

BIZ & FINANCE MONDAY | JUNE 22, 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

Kenanga IB sees OPR unchanged through 2026 KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga IB) expect Bank Negara Malaysia (BNM) to maintain the OPR at 2.75% through 2026, with policy stability remaining the central priority. Kenanga IB said domestic demand is resilient, and broad based inflationary pressures remain contained despite external commodity volatility. Relative ringgit stability and a more balanced external environment following reduced geopolitical tensions provide additional room for policy flexibility, supporting a steady rather than reactive monetary stance. On a macro level, Kenanga IB said domestic headline inflation rose to 2.0% year-on-year (YoY) in May, its highest level in two years. “The print came in marginally below our forecast and consensus of 2.1%,“ Kenanga IB said in a note. The research firm said prices increased 0.15% month-on month (MoM) in May, down from 0.37% in April, as higher food and housing costs were partly offset by lower transport prices. The softer monthly increase suggests CPI momentum moderated despite the slightly higher annual reading. The firm noted that core inflation held steady at 2% YoY, reinforcing the view that underlying price pressures remain manageable. Food and beverage inflation rose to a four-month high of 1.4% in May from 1.2% in April, driven by higher fresh meat and vegetable prices, while housing and utilities inflation edged up to 1.2% as rental, maintenance and electricity costs increased. Transport inflation, however, eased to 3.8% from 4.1%, weighed down by lower diesel, petrol and lubricant prices.

THE ringgit is expected to trade on a softer note against the US dollar this week amid persistent expectations of a possible US Federal Reserve (Fed) rate increase later this year. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said expectations of a possible 25-basis point increase in the federal fund rate later this year are likely to continue supporting the greenback and weigh on regional currencies, including the ringgit. “Next (this) week, we foresee similar dynamics will continue to hold,“ he told Bernama. Mohd Afzanizam said investors will closely monitor the release of the US Personal Consumption Expenditures (PCE) Price Index on Friday, which is the Fed’s preferred measure of inflation. “The inflation gauge is expected to remain elevated. As such, expect the ringgit to stay soft in the near term,” he said. Last week, on a Friday-to-Friday basis, the ringgit eased to 4.1340/1395 against the US dollar from 4.0555/0600 a week earlier. The local currency traded lower against a basket of major currencies during the week. It depreciated against the British pound to 5.4709/4782 from 5.4429/4489, eased versus the Japanese yen to 2.5636/5671 from 2.5334/5364 and weakened against the euro to 4.7376/7439 from 4.6979/7031 previously. The ringgit slid against the Indonesian rupiah to 232.2/232.5 from 227.0/227.4, eased vis-a-vis the Singapore dollar to 3.2019/2064 from 3.1602/1640, slipped against the Thai baht to 12.5856/6074 from 12.4105/4288, and declined against the Philippine peso to 6.80/6.81 from 6.67/6.68. Ringgit expected to stay soft against US dollar this week FM Global Logistics Holdings Bhd Neutral. Target price: RM0.60

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1870 2.9450 3.2390 2.9530 4.7930 2.4150 3.2390 5.5230 5.2260

4.0380 2.8240 3.1350 2.8680 4.6350 2.3240 3.1350 5.3430 4.9990

4.0280 2.8080 3.1270 2.8560 4.6150 2.3080 3.1270 5.3230 4.9840

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

115.0400

109.0000

108.8000 3.0250 60.2400 50.9300 4.0000 0.0168 2.4810 40.2500 1.2000 6.3800 109.8100 106.5600 23.5800 0.9500 40.7000 11.3900 N/A N/A

3.4800

3.2250

N/A

N/A

65.7400 53.8600 4.5200 0.0247 2.6130 44.0100 1.5600 6.9900 115.8800 112.4600 26.3500 1.3200 44.9400 13.3000 N/A

60.4400 51.1300 4.2000 0.0218 2.4910 40.4500 1.4000 6.5800 110.0100 106.7600 23.7800 1.1500 40.9000 11.7900 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

WCT Holdings Bhd Neutral. Target price: RM0.50

Sunway Construction Group Bhd Hold. Target price: RM7.99

June 19, 2026: RM0.425

June 19 2026: RM0.585

June 19, 2026: RM7.50

Source: Bloomberg, TA Research

Source: PublicInvest Research

SUNCON, via its wholly owned subsidiary Sunway Construction Sdn Bhd, accepted RM664.4mn worth of change orders for two ongoing substation projects serving data centres in Johor from a US headquartered multinational technology corporation. The additional works raise the total contract value of the ongoing projects to RM865.6mn. The construction works of the two projects are expected to be completed by Q4CY27 and Q2CY28, respectively. Including these change orders, SUNCON’s FY26 YTD new job win is estimated to increase to RM4.2bn, bringing its total unbilled order book to RM8.8bn. This outstanding order book backlog implies a healthy 1.6x its FY25 revenue, ensuring its near-term earnings visibility. At the current new job replenishment rate, it achieved approximately 65% of our FY26 new job win assumptions of RM6.5bn. We remain confident in SUNCON’s ability to meet our new job win assumption, supported by its robust RM15.3bn active tender book and recurring internal job flows from Sunway Bhd’s property development pipeline, with CY26 launches targeted at RM4.0bn GDV. We maintain our positive view on SUNCON as a leading pure-play DC construction proxy, supported by over 60% of its outstanding order book being DC-related and an active tender pipeline exceeding 800MW. Based on a construction cost assumption of RM30–35mn/MW and a 30%-win rate, we estimate potential DC contract opportunities of RM7.2bn– 8.4bn, providing ample room for future order book replenishment. We continue to like SUNCON due to: (i) its strong position as a contender for mega infrastructure projects, namely Johor EART and Penang LRT Segment 2, and (ii) its leading position in securing new contracts within the thriving ATP industry. We raise our TP to RM7.99 but maintain HOLD call on SUNCON. - TA Research, June 19

WCT Holdings Bhd, through its wholly-owned subsidiary WCT International Sdn Bhd, has partnered with UAE-based Construction General Contracting House Ltd (CGCH) in a 50:50 unincorporated Joint Venture to accept a sub-contract award valued at AED479m (approximately RM528.9m) for the “Yas Living Main Works Package” in Abu Dhabi, comprising the construction of residential and commercial buildings across two plots of land. The scope of works excludes foundational elements like pilling and excavation, instead covering structural, architectural, mechanical, electrical and plumbing, and external works. WCT’s share of the work is estimated at RM264.5m, which is estimated to increase WCT’s outstanding construction order book by 13.9% to RM2.2bn. Based on our estimates, this project will contribute about 14.3% annually to the Group’s earning over the approximately 32-month contract period. While we view this job win positively, we keep our forecasts unchanged as it is within our orderbook replenishment assumption target of RM1bn for FY26. The contract was awarded by CGCH to the 50:50 unincorporated joint venture, to jointly undertake, execute, and complete the construction works for the project, owned and developed by Aldar Development LLC - O.P.C., known as the Yas Living Main Works Package. The contract is valued at AED479m (approximately RM528.9m), with works including structural, architectural, mechanical, electrical, plumbing and external works for commercial and residential buildings with 12 levels each in Plot C39 and Plot C38. It is scheduled to commence in Q3 2026 and to be completed within 972 days. We retain our Neutral call with a lower TP of RM0.50 - PublicInvest Research, June 19

Source: PublicInvest Research

FOLLOWING our engagement with FM Global Holdings Bhd management, we remain cautious on its near-term prospects, weighed down by compressed freight rates, weakening global trade, elevated operating costs, and unpredictable trade policies. That said, global oil prices have recently retreated to three-month lows amid progress on a US-Iran peace deal. The White House has also shown willingness to issue exemptions and reductions for specific sectors and nations, while trade negotiations with and global partners are progressing actively. This geopolitical de escalation and the easing initial trade tension are providing a stabilising tailwind for global trade and supply chain recovery. 3QFY26 profit before tax declined marginally by 2% YoY to RM11.2m, in line with lower revenue (-4% YoY) resulting from reduced business activity and impairment losses on trade receivables. Outlook for freight market remains mixed. Global trade growth is slowing, with demand growth projected to range from just 1.9% to 3.1%, weighed down by persistent geopolitical risks, trade fragmentation, rising trade barriers, policy uncertainty. Despite short-term headwinds like vessel overcapacity and elevated shipping rates, the long-term prospects for freight are positive, with projected annual growth of 5.5% to 8.0% annually. This growth will be primarily driven by e-commerce and emerging economies in the Global South, supported by technological advancements, like AI, IoT, and blockchain, as well as growing focus on sustainability and resilient logistics solutions. We retain our Neutral call, and keep the TP unchanged at RM0.60. - PublicInvest Research, June 19