24/06/2026

BIZ & FINANCE WEDNESDAY | JUNE 24, 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

UK, Malaysia start digital trade negotiations KUALA LUMPUR: British High Commission Kuala Lumpur has announced the commencement of negotiations on a new digital trade agreement (DTA) between the UK and Malaysia. In a statement, it said the DTA aims to make digital trade with Malaysia easier, cheaper and more secure through cross-border data flows, while reducing paperwork and border friction through digital systems and ensuring strong protections for personal data, intellectual property, online consumers and cybersecurity. “The deal aims to strengthen international digital and tech cooperation by supporting responsible innovation in areas like artificial intelligence (AI) and data, while creating new partnerships that boost efficient supply chains, infrastructure and global competitiveness,” it said. UK Trade Minister Chris Bryant said the negotiations with Malaysia mark an important step in strengthening the UK’s position as a global leader in digital trade. “A UK-Malaysia digital trade agreement has the potential to unlock new opportunities for British businesses, support high skilled jobs, and ensure our firms can compete and thrive in fast growing, tech driven markets,” he said. According to the British High Commission, the UK is a world leader in digital trade and has a growing trading relationship with Malaysia, worth £6.4 billion (RM35 billion) in 2025. It said the UK exported £730 million worth of digitally delivered services to Malaysia in 2023, while the Organisation for Economic Co-operation and Development estimates that in 2022, exports to Malaysia supported 31,100 UK jobs. – Bernama

Ringgit rebounds ahead of US PMI data release

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit rebounded from Monday’s losses to end higher against the US dollar and Asean currencies, and was mostly firmer against other major currencies yesterday as investors await the US Purchasing Managers’ Index (PMI) June data release. At 6pm, the local note appreciated to 4.1380/1430 against the greenback from 4.1465/1500 at Monday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors were closely monitoring the US PMI data for June, with market expectations on improvement from May’s readings. “Beyond that, investors remain focused on the US Federal Reserve’s (Fed) hawkish stance and the possibility of further interest rate hikes,” he told Bernama. Meanwhile, SPI Asset Management managing partner Stephen Innes said the local note remained resilient, strengthening modestly despite risk-off sentiment weighing on global markets amid concerns surrounding the artificial intelligence (AI)-driven trade. At the close, the ringgit was mostly higher against a basket of major currencies. It gained against the British pound to 5.4750/4816 from 5.4850/4896 at Monday’s close, rose versus the euro to 4.7223/7280 from 4.7506/7547 on Monday, and was almost flat vis-a-vis the Japanese yen at 2.5638/5669 from 2.5635/5658 previously. The local note was firmer against regional currencies. It appreciated against the Singapore dollar to 3.1959/2000 from 3.2069/2098 at Monday’s close, and increased versus the Thai baht to 12.4845/5053 from 12.5919/6075 previously. Economy Budi95 to Budi Diesel: Next reform phase

1 US Dollar

4.2230 2.9610 3.2590 2.9750 4.8210 2.4130 3.2590 5.5880 5.2460 3.5070 62.6000 66.1200 54.3100 4.5500 0.0247 2.6300 44.5800 1.5800 7.0100 116.7300 113.3600 26.6200 1.3300 45.1500 13.3500 116.0500 N/A

4.0700 2.8370 3.1510 2.8870 4.6570 2.3200 3.1510 5.4010 5.0140 3.2470 59.8600 60.7300 51.5200 4.2200 0.0218 2.5050 40.9300 1.4100 6.5800 110.8100 107.6100 24.0200 1.1600 41.0500 11.8200 109.8500 N/A

4.0600 2.8210 3.1430 2.8750 4.6370 2.3040 3.1430 5.3810 4.9990

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

109.6500

3.0470

N/A

60.5300 51.3200 4.0200 0.0168 2.4950 40.7300 1.2100 6.3800 110.6100 107.4100 23.8200 0.9600 40.8500 11.4200 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

Auto & Autoparts Neutral

REITs Overweight

Source: TA Research, DOSM

Source: RHB, Bloomberg

THE Ministry of Finance (MoF) has announced the rollout of the Budi Madani Diesel programme, marking the next phase of Malaysia’s targeted fuel subsidy reform agenda. Effective July 1, eligible Malaysians will be able to purchase subsidised diesel at RM2.10 per litre, applicable to B10 and higher biodiesel blends. The B7 diesel blend will remain unsubsidised. Currently, diesel is sold at a subsidised price of RM2.15 per litre in Sabah and Sarawak, while consumers in Peninsular Malaysia pay the market-linked retail price of RM4.37 per litre. Under the new framework, the subsidised diesel price will be standardised nationwide, allowing eligible Malaysians in Peninsular Malaysia to enjoy subsidised diesel while restricting access for non-citizens. The move is intended to curb leakages and smuggling activities arising from the wide gap between subsidised and unsubsidised diesel prices. Ahead of the official implementation, the government will introduce a transitional phase beginning June 27, during which eligible users can purchase subsidised diesel at RM2.15 per litre. This provides a temporary discount of RM2.22 per litre, or approximately 51%, compared with the current unsubsidised diesel price of RM4.37 per litre in Peninsular Malaysia. From July 1 onwards, the subsidised price will be reduced further to RM2.10 per litre. Similar to the Budi95 programme, eligibility is limited to Malaysian citizens with a valid MyKad and driving licence. In addition, applicants must personally own a diesel-powered vehicle registered under their name and maintain a valid road tax. Eligibility verification will be conducted using Road Transport Department records to ensure that subsidies are channelled only to legitimate vehicle owners. – TA Research, June 23

THE KLREI-to-10-year Malaysian Government Securities (MGS) yield spread is currently at 200bps, which is +0.5SD above its long term mean. All eight REITs under our coverage chalked results that met expectations. IGB REIT saw a big jump in quarterly earnings (net profit: +52% YoY), largely due to contributions from Mid Valley Southkey (asset injection completed in Nov 2025). For the office REITs, IGB Commercial REIT stood out, with net profit surging by 28% YoY, driven by an improved occupancy rate of 93% (from 89%) and higher average rent per sqf rate of RM6.64 (from RM6.42). In the industrial REIT space, AME REIT recorded 13% YoY earnings growth, supported by six new industrial properties (of which the acquisitions were completed over the past 12 months), on top of its assets’ full occupancy rates and positive rental reversions. Sector fundamentals remain intact, supported by high occupancy levels and stable rental reversions. RHB Economics expects Bank Negara Malaysia to maintain a broadly stable policy stance, with the OPR projected to remain at 2.75% in 2026. This should help contain borrowing cost pressures and support acquisition activity. On the demand side, the latest retail sales data from the Department of Statistics Malaysia showed that consumer spending remained resilient, rising 6.3% YoY in April 2026 (April 2025: 4.7%). However, consumer sentiment could soften in the coming months, while the trend of tourist footfalls could also remain uneven. That said, we believe prime malls with strong shopper catchments, high occupancy levels, and quality tenants should be better positioned to defend earnings. – RHB Research, June 23

Source: Company data, RHB

MAY TIV fell to 61,250 units (-15% MoM, -12% YoY), bringing the YTD May figure to 316k units (-1% YoY). This was largely within our 2026 estimate (40% of full-year forecasts). The MoM decrease was mainly attributable to a lower number of working days, resulting in a lower TPV (-19% MoM), coupled with the high base effect in Apr 2026 (driven by the clearance of backlogs from holiday-related assembly plant shutdowns in March). Both national marques saw a sequential decline in sales volumes, with that of Perodua and Proton falling 24% and 10%. It was a similar situation for some non-national marques, as Honda’s and Mazda’s sales volumes declined by 8% MoM and 20% MoM. Meanwhile, Toyota recorded a positive uptick of 9% MoM in sales volume, likely driven by the recent launch of the Yaris Cross (on-the-road price: RM99,900), which registered 1,278 units moved in May. On the EV front, Proton remained the top-selling brand in May. Based on Road Transport Department data which includes non-MAA members, Proton led registrations with 1,779 units (-26% MoM), followed by BYD at 925 units (-35% MoM), and Chery at 541 units (-4% MoM). Total EV registrations declined 15% MoM to 5,038 units, bringing YTD-May registrations to 25k units (7.6% of total registrations vs 5.1% in 2025). Given the recent shift in Malaysia’s EV policy, we think there could be frontloading activities ahead by EV players, as well as forward purchases by consumers. Perodua, meanwhile, registered only 80 EV units sold in May (April: 52 units), likely reflecting its higher pricing vs Proton’s e.MAS 5. – RHB Research, June 23