Key Indices
Top Stories
Sector Update | Construction
- The announcement of Budget 2027 last Friday will have limited impact on the Malaysian construction sector. While development expenditure increased 3% yoy to RM83b, there was a lack of new mega projects announced. Meanwhile, the reactivation of VOP will provide some cost relief, while the impacts from the minimum wage hike are deemed manageable. Overall, we still like the sector for its earnings visibility and commendable dividend yields. Maintain OVERWEIGHT; top picks are Gamuda, Kerjaya, Sunway Construction Group, Binastra Corporation and IJM Corporation.
Sector Update | Renewable Energy
- PETRA hosted a briefing to provide clarity on the CRESS Acceleration Package. The government also introduced an additional 4 sen/kwh SAC for green consumers (offtakers). This brings total SAC to 18 sen/kwh. The SAC “discount”, while lower than expected, is still a positive sector catalyst. We gathered that data centres were keen on CRESS even at 20 sen/kwh and as such, the underlying demand remains robust. Maintain OVERWEIGHT.
Market Spotlight
- The FBMKLCI closed higher yesterday, adding 5.34pt to 1,623.35 amid bargain hunting across the board.
- US stocks were lower after the close on Tuesday, as losses in the healthcare, financials and consumer goods sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
KTI Landmark | KTI MK
- Trading Buy Range: RM0.54-0.545
Sorento Capital | SORENTO MK
- Trading Buy Range: RM0.705-0.71
Autocount Dotcom | ADB MK
- Trading Buy Range: RM0.525-0.53
Top Stories
Sector Update | Construction
- The announcement of Budget 2027 last Friday will have limited impact on the Malaysian construction sector. While development expenditure increased 3% yoy to RM83b, there was a lack of new mega projects announced. Meanwhile, the reactivation of VOP will provide some cost relief, while the impacts from the minimum wage hike are deemed manageable. Overall, we still like the sector for its earnings visibility and commendable dividend yields. Maintain OVERWEIGHT; top picks are Gamuda, Kerjaya, Sunway Construction Group, Binastra Corporation and IJM Corporation.
Sector Update | Renewable Energy
- PETRA hosted a briefing to provide clarity on the CRESS Acceleration Package. The government also introduced an additional 4 sen/kwh SAC for green consumers (offtakers). This brings total SAC to 18 sen/kwh. The SAC “discount”, while lower than expected, is still a positive sector catalyst. We gathered that data centres were keen on CRESS even at 20 sen/kwh and as such, the underlying demand remains robust. Maintain OVERWEIGHT.
Market Spotlight
- The FBMKLCI closed higher yesterday, adding 5.34pt to 1,623.35 amid bargain hunting across the board.
- US stocks were lower after the close on Tuesday, as losses in the healthcare, financials and consumer goods sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
KTI Landmark | KTI MK
- Trading Buy Range: RM0.54-0.545
Sorento Capital | SORENTO MK
- Trading Buy Range: RM0.705-0.71
Autocount Dotcom | ADB MK
- Trading Buy Range: RM0.525-0.53
Key Indices
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