16/09/2026

BIZ & FINANCE WEDNESDAY | SEPT 16, 2026

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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

AirAsia to resume KK-Bintulu, KK-Sibu direct flights in November PUTRAJAYA: Direct AirAsia flights linking Kota Kinabalu with Bintulu and Sibu will resume from November, Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing said yesterday. He said the move followed recent talks with the airline on restoring both routes to boost air connectivity between Sabah and Sarawak, especially for Bintulu and Sibu residents. He said the Kota Kinabalu–Bintulu route will resume on Nov 1 with three flights weekly, while Kota Kinabalu–Sibu will start on Nov 2 with four flights weekly. Both routes will use Airbus A320 aircraft, with tickets already on sale since Sept 2. “Many people depend on these direct flights for work, education, business, tourism, medical treatment and visiting family. Without direct flight services, passengers may have to transit at other airports, lengthening their journey and incurring extra costs.“ Tiong said stronger connectivity between Sabah and Sarawak was not only important for easing travel, but also supported economic activity, domestic tourism and closer people-to-people ties between the two states. “The Kota Kinabalu–Bintulu service will provide better convenience for residents, workers and the business community, in line with Bintulu’s continued growth as an industrial and economic hub. The Kota Kinabalu–Sibu route will also benefit residents of Sibu and central Sarawak as a whole,” he added. Tiong also reminded airlines to ensure their services remain stable and reliable, and to avoid frequent cancellations or last minute schedule changes that could erode passenger confidence. He urged AirAsia to keep fares affordable, as far as market conditions allow, so that the additional flight options genuinely benefit the people. – Bernama

THE ringgit ended lower against the American dollar yesterday as investors remained cautious ahead of the two-day US Federal Open Market Committee (FOMC) meeting, an analyst said. At 6pm, the local currency dipped to 4.0835/0880 against the greenback from Monday’s close of 4.0735/0770. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the odds for a US rate hike this week were reportedly at 92.3 per cent based on data from CME FedWatch. CME FedWatch is a tool by the Chicago Mercantile Exchange (CME Group) that shows market expectations for the US Federal Reserve’s (Fed) interest-rate decisions. “Consequently, the US Dollar Index (DXY) rose 0.25 per cent to 99.641 points while the 10-year US Treasury note yield surpassed the 5.00 per cent level. Other Asian currencies such as the Indonesian rupiah, Thai baht and Singapore dollar were also weaker against the US dollar,” he told Bernama. At the close, the ringgit weakened against the euro to 4.7111/7163 from Monday’s close of 4.7008/7049, fell against yen to 2.6366/6396 from 2.6355/6380, and inched down vis-a-vis the British pound to 5.5037/5098 from 5.4931/4978 previously. Against its Asean peers, the ringgit eased against the Singapore dollar to 3.2093/2131 from 3.2055/2085, and retreated against the Thai baht to 12.2620/2800 from 12.2445/2598. The local note was also marginally lower against the Indonesian rupiah at 230.7/231.1 from 230.5/230.8 on Monday, and was down vis-à-vis the Philippine peso to 6.50/6.51 from 6.48/6.49 previously. Ringgit slips against US dollar as investors await Fed decision

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1470 2.9670 3.2560 2.9750 4.7810 2.3980 3.2560 5.5900 5.0930 3.4390 62.0700 65.5600 53.2900 4.4200 0.0245 2.6990 45.5100 1.5500 6.6800 114.6800 111.3100 26.3600 1.3200 43.6800 13.0000 113.9200 N/A

3.9990 2.8450 3.1530 2.8900 4.6230 2.3080 3.1530 5.4090 4.8730 3.1830 59.4100 60.2900 50.6100 4.1100 0.0217 2.5730 41.8400 1.3800 6.2800 108.8700 105.6700 23.8000 1.1500 39.7600 11.5200 107.9600 N/A

3.9890 2.8290 3.1450 2.8780 4.6030 2.2920 3.1450 5.3890 4.8580

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

107.7600 2.9830 60.0900 50.4100 3.9100 0.0167 2.5630 41.6400 1.1800 6.0800 108.6700 105.4700 23.6000 0.9500 39.5600 11.1200 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

REIT Sector Overweight

Allianz Malaysia Bhd Buy. Target price: RM24.35

Pekat Bhd Buy. Target price: RM2.37

Sept 15, 2026: RM2.03

Sept 15, 2026: RM20.86

Source: Bloomberg, TA Research

Source: Company data, RHB Research

IN 1H26, Allianz’s general insurance segment continued to outperform the industry, with gross written premium (GWP) growth of 6.5%, well ahead of the industry’s 1.4% growth. As a result, Allianz further strengthened its market leadership, with market share increasing to 15.6% in 1H26 from 15.1% in 1H25. Looking ahead to 2H26, we expect both Allianz’s motor and non motor businesses to sustain healthy growth, supported by its strong agency and franchise distribution channels. We forecast Allianz’s general insurance GWP to exceed RM4bn in FY26, compared with RM3.68bn in FY25. Within the motor segment, we expect Allianz’s market share to edge closer to 25% from the current 24.2%, underpinned by its strong 40% market share in new car sales. The strong demand for the Proton e.MAS, should provide an additional growth catalyst. Meanwhile, we expect the non-motor segment to grow by 6–8% in FY26, driven primarily by the fire business. As a base Medical Health Insurance and Takaful (MHIT) plan, MediAsas provides Allianz with an opportunity to broaden its customer base by extending affordable coverage to individuals who are currently uninsured and rely on out-of-pocket payments to fund their healthcare expenses. Out-of-pocket spending accounts for approximately one-third of Malaysia’s total healthcare expenditure. MediAsas could enable Allianz to expand its reach into the M40 and upper-B40 segments, which remain relatively underserved by private medical insurance. At the same time, we believe the risk of existing customers downgrading to the base plan is limited, given that the majority of Allianz’s current policyholders are from the upper-M40 and T20 segments, who are likely to prefer more comprehensive coverage and higher medical limits. Reiterate Buy and RM24.35 TP. – TA Research, Sept 15

Source: Bloomberg, Phillip Capital Research

THE Bursa Malaysia REIT Index (KLREI) has underperformed the broader market YTD, weighed by the expiry of the longstanding withholding tax concession and elevated bond yields. Nevertheless, 2Q26 results broadly reaffirmed our positive stance on the sector. We continue to like M-REITs for their defensive profile and stable distributions amid uncertain macroeconomic The KLREI-10-year MGS yield spread currently stands at 220bps, close to +1SD above its long-term mean. While bond yields have risen, the correction in M-REIT share prices has also lifted sector yields, keeping the spread at attractive levels. With fundamentals improving, we believe the sector’s de-rating has improved the risk-reward at its current valuation. 2Q26 results within expectations. All eight M-REITs results under our coverage met expectations. On a market-cap-weighted basis, sector revenue and earnings grew 14.5% and 15.6% YoY, but moderated 3.2% and 6.5% QoQ, mainly on seasonally softer retail performance. Operating indicators remained healthy, with generally stable occupancy, positive rental reversions and resilient leasing demand. We remain positive on the sector, with management guidance continuing to point to healthy leasing demand, stable-to-improving occupancy and positive rental reversions. For retail REITs, however, we expect NPI margins to normalise from the strong 1H26 levels, as the shift in automatic fuel adjustment (AFA) from a rebate to a surcharge since May partly offsets the electricity cost savings from the Jul 2025 tariff revision. Industrial REITs should remain relatively insulated given their lower utilities exposure. Maintain OVERWEIGHT. Top Picks: Axis REIT and Pavilion REIT. – RHB Research, Sept 15

WE remain positive on Pekat’s near-term prospects, supported by a robust order book of RM750m (1.2x 2025 revenue cover) and broad-based growth across all four segments. EPE switchgear is the largest order book contributor at 41%, followed by ELP (34%), solar (20%), and trading (5%). Growth momentum remains healthy, with ELP revenue standing out in 2Q26 (+67% YoY), complemented by sustained activities in EPE and solar. Approximately 2/3 of the ELP order book is now tied to DC projects, a mix expected to sustain for at least the next three years, with 2026 ELP revenue targeted at RM80-100m versus RM40m in 1H26. Management guides for 2H26 revenue of RM300-360m. DC exposure remains a key near-term growth catalyst. YTD ELP wins have reached RM77m, representing 51% of the RM150m full year replenishment target, including three recent DC contract wins in Johor worth RM57m. Residential solar demand also recovered from its post-NEM weakness, with monthly revenue improving from RM1-2m to RM4-5m, while management targets RM8-9m per month by year-end. Pekat expects to participate in at least two LSS6 opportunities via EPCC and consortium structures, and management does not anticipate any new share issuance. Pekat’s power distribution segment continues to deliver, with 2Q26 revenue rising 35% YoY to RM46.9m. EPE holds c.40% market share in TNB’s MV switchgear market and has secured cumulative RM377m in TNB contracts since acquisition, comprising 11kV busbars (RM97m), 33kV/11kV GIS switchgear (RM135m), AIS/GIS maintenance (RM31m), and 11kV motorised RMUs (RM113m). Maintain BUY with TP of RM2.37. – Phillip Capital Research, Sept 15