30/09/2026

BIZ & FINANCE WEDNESDAY | SEPT 30, 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

BNM eyes greater flexibility in risk-taking for energy transition KUALA LUMPUR: Bank Negara Malaysia (BNM) is considering giving financial institutions more room to take on higher risks responsibly to support the energy transition, governor Datuk Seri Abdul Rasheed Ghaffour said. He said the central bank was reviewing how to better calibrate regulations to support the transition, including giving financial institutions greater flexibility to take on higher risks within an acceptable risk appetite. “We are considering giving financial institutions greater room to take on higher risks, responsibly, with those risks appropriately understood, priced and managed within an acceptable risk appetite,” he said in his special remarks at the JC3 Journey to Zero Conference 2026 yesterday. Abdul Rasheed said BNM was committed to facilitating the pipeline of green energy projects while exploring regulatory and supervisory adjustments to support them. He said that while capital was available, the key challenge was financial intermediation, particularly channelling funds into viable, scalable green projects. Many high-impact projects, especially at an early stage, struggle to secure financing because of perceived commercial unviability despite being technically feasible, he said. Citing small-scale renewable energy initiatives as an example, he said projects that appeared marginal individually could become viable when replicated at scale, underscoring the need for early engagement, better structuring and risk-sharing mechanisms. On the broader energy transition, Abdul Rasheed said Malaysia was making progress, with renewable energy accounting for 31% of installed capacity in 2025, up from 25% in 2023. – Bernama

THE ringgit strengthened marginally against the US dollar yesterday, with market sentiment supported by S&P Global Ratings’ reaffirmation of Malaysia’s ‘A-’ sovereign credit rating with a stable outlook. At 6pm, the ringgit improved to 4.0790/0850 against the greenback from Monday’s close of 4.0805/0845. In a statement yesterday, the Finance Ministry said S&P has reaffirmed Malaysia’s‘A-’sovereign credit rating with a stable outlook, citing the economy’s resilience and diversification, sustained growth momentum, gradual fiscal consolidation, strong monetary policy flexibility and a historically supportive external position. The ministry said the stable outlook reflects S&P’s expectation that Malaysia’s growth momentum and prevailing policy environment will support steady fiscal performance over the next two to three years. Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar remained supported, with the US Dollar Index rising 0.19% to 101.391 points. At the closing, the ringgit traded higher against a basket of major currencies. It increased against the euro to 4.6235/6303 from 4.6416/6461 at Monday’s close, climbed vis-à-vis the British pound to 5.3937/4016 from 5.4099/4152, and gained versus the Japanese yen to 2.5869/5909 from 2.5994/6021. Against Asean currencies, the local note strengthened versus the Singapore dollar to 3.1885/1934 from 3.1914/1948 at yesterday’s close, rose against the Indonesian rupiah at 226.8/227.2 from 226.9/227.2, and advanced against the Thai baht to 12.1402/1632 from 12.1429/1588 previously. – Bernama Ringgit edges up against US dollar, aided by S&P rating

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1570 2.9240 3.2460 2.9230 4.7180 2.3550 3.2460 5.5000 5.0150 3.4420 62.2000 64.7000 53.4200 4.4100 0.0241 2.6560 44.6000 1.5600 6.7400 115.0000 111.6500 26.1600 1.3200 42.9200 12.8800 114.2100 N/A

4.0110 2.8050 3.1460 2.8410 4.5650 2.2680 3.1460 5.3230 4.8020

4.0010 2.7890 3.1380 2.8290 4.5450 2.2520 3.1380 5.3030 4.7870

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

108.2800 3.1960 59.5700 59.5300 50.7500

108.0800 2.9960 59.3300 50.5500 3.9000 0.0163 2.5230 40.8000 1.1900 6.1400 108.9700 105.8000 23.4300 0.9500 38.8700 11.0200 N/A N/A

4.1000 0.0213 2.5330

N/A

41.0000 1.3900 6.3400 109.1700 106.0000 23.6300 1.1500 39.0700 11.4200

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

TSH Resources Bhd Buy. Target price: RM1.45

IGB Commercial REIT Buy. Target price: RM0.78

Domestic Exports Shipments rise on chip strength

Sept 29, 2026; RM1.26

Sept 29, 2026; RM0.615

Source: Bloomberg

Source: Bloomberg

Source: DOSM

WE forecast Q3’26 core earnings of RM31-32 million, up 30-33% YoY, driven by sustained high occupancy, positive rental reversions and lower financing costs following the RM850 million refinancing completed in Nov 2025. We expect portfolio occupancy to remain broadly stable at c.94%, with Mid Valley City assets remaining close to full occupancy (Q2’26: 98%) while further leasing upside should come mainly from its KL City assets (Q2’26: 87%). On a QoQ basis, we expect earnings to soften slightly by 2%, mainly reflecting higher electricity costs following the Automatic Fuel Adjustment (AFA) surcharge, broadly in line with management’s expectation of no significant NPI margin compression. With portfolio occupancy already above 94%, we see less scope for the sizeable occupancy-driven earnings uplift that supported 26% FY26 DPU growth. Instead, the next leg of growth should increasingly come from positive rental reversions and asset enhancement initiatives (AEIs). Management expects low single-digit annual reversions, which we view as achievable given the portfolio’s tight occupancy and relative demand. Mid Valley City’s average rent of RM7.10 psf already sits 20% above the broader KL Fringe average of RM5.90 psf, highlighting the premium commanded by its mature integrated ecosystem and connectivity. At the same time, IGBCR’s KL City assets average RM5.93 psf remains 13% below the broader KL City market at RM6.82 psf, suggesting greater room for rental catch-up as leasing improves. BUY with RM0.78 TP. – RHB Research, Sept 29

TSH announced that the administrative fine imposed to its 90%- owned subsidiary SPMN amounted to IDR184.37 billion (RM42 million). The fine will be recognised in Q3’26 and settled in four instalments, with the first IDR46.3 billion on Sept 25, followed by IDR46 billion payments on the 25th of each of the following three months. On Sept 16, SPMN signed an acknowledgement letter to facilitate the installment structure while seeking further clarification and pursuing an appeal. The fine relates to 1,228.89ha outside SPMN’s hectare of non right to exploit (HGU), of which 496.69ha was planted before TSH’s acquisition and 732.20ha by local communities. As the affected land is outside of SPMN’s HGU and not included the group’s reported planted area (FY25: 38,654ha), there will be no reduction in the reported planted hectarage. FFB output from 300ha of the affected area was previously included in the group’s FFB production number, contributing 0.8% (6k tonnes) to FY24 output. However, harvesting in this area ceased in FY25 upon the land surrender to forest area enforcement body Satgas PKH, and has since been excluded from production figures. Consequently, we see no downside risk to our FY26F FFB output target of 773k tonnes (-2.1% YoY), with YTD August production at 518k tonnes (-3.8% YoY). In the same announcement, TSH disclosed that Teguh Swakarsa Sejahtera, another 90%-owned Indonesian subsidiary, is awaiting final clarification from Satgas PKH on 61.09ha of planted area outside its HGU. BUY with RM1.45 TP. – RHB Research, Sept 29

MALAYSIA’s domestic exports remained on a strong growth trajectory, rising 46% YoY in Aug 2026 (July 2026: +36.9%), driven mainly by the E&E sector. On a YTD basis, domestic exports rose 24.9% YoY in Jan-Aug 2026, up from 21.8% YoY in Jan-Jul 2026. The E&E sector, which accounted for nearly 46% of total domestic exports, continued to expand strongly (+70.4% YoY) amid the global semiconductor upcycle. By sub-sector, semiconductor exports more than doubled, surging 107.4% YoY in Aug 2026, up from 83.4% in July 2026 and registering the second time in four months that growth exceeded 100%. On the import front, retained imports grew by 40.4% YoY (July 2026: +34.3%), with both intermediate goods (+50.5%) and capital goods (+37.4%) recording strong growth. While import growth in intermediate and capital goods can serve as a leading indicator of domestic production, the strong growth recorded suggests that production activity is likely to remain firm in the near term. Meanwhile, imports of consumption goods declined 1.6% YoY, the first contraction in three months. Given Malaysia’s strong position within the global semiconductor supply chain, the country is expected to continue benefiting from the global semiconductor demand upcycle, supported by continued advances in AI development. Global semiconductor sales recorded their fastest pace of growth on record for the sixth consecutive month, expanding by 135.1% YoY in July 2026 (June 2026: +123.6%), bringing YTD growth to 92.1%. – Phillip Capital Research, Sept 29