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M+ Morning Market Buzz - 20May25

Dow Jones: 42,792.07 pts (+137.33pts, +0.32%)
⬆️ Resistance: 43700
⬇️ Support: 41000

FBM KLCI: 1,556.14 pts (-15.61pts, -0.99%)
⬆️ Resistance: 1620
⬇️ Support: 1520

HSI Index: 23,332.72 pts (-12.33pts, -0.05%)
⬆️ Resistance: 24200
⬇️ Support: 22600

Crude Palm Oil: RM3,882 (+RM33, +0.85%)
⬆️ Resistance: 4080
⬇️ Support: 3720

Brent Oil: $65.41 (+$0.07, +0.11%)
⬆️ Resistance: 68.20
⬇️ Support: 62.20

Gold: $3,229.56 (-$1.45, -0.04%)
⬆️ Resistance: 3340
⬇️ Support: 3060

Source: Bloomberg, M+
M+ Market Update – 20May25
Sentiment Turns Positive Despite Credit Cut

US: Wall Street began the week on a positive note despite Moody’s downgrade of the US credit rating from AAA to AA1, citing concerns over the nation’s $36 trillion debt and corporate tax cuts that may pose risks to the US economy. Wall Street futures were flat at the time of writing, with the S&P 500’s P/E hovering above the 90th percentile. Nevertheless, any further progress toward easing the trade war could provide upside potential for US equities. In the commodities market, both Brent Crude and Gold traded flat around USD65/bbl and USD3,220/oz respectively. CPO prices charged towards RM3,915/MT.

MY: With Wall Street trading flat, we believe the local sentiment may improve. We also expect Gamuda’s recent land acquisition (three land parcels totalling 336 acres for RM248.7m) to be a positive development for construction companies like INTA, potentially boosting their job replenishment. In the Plantation sector, we are positive on JPG, which stands to benefit from Indonesia’s increase in the palm oil export levy from 7.5% to 10%, coupled with its robust earnings and attractive valuations (JPG’s P/E: 10.4x, peer average P/E: 14.8x). Also, amid the uncertain tariff environment, we view ReachTen as a defensive play due to its aggressive network coverage expansion in Sarawak which, will should support stable recurring income.

Stocks to watch:

Construction: *INTA*, *KERJAYA*
Utility: *GASMSIA*
Telco: *REACHTEN*
Healthcare: *KPJ*
Transportation: WPRTS
Consumer: AEON

Source: M+
Good Morning All,

Here’s our IPO note on Signature Alliance Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)

We assign a fair value of RM0.88 per share for SAG, implying a 41.9% upside from its IPO price of RM0.62. This valuation is based on a P/E multiple of 18.0x, pegged to the midFY26F EPS of 4.88 sen. We believe the ascribed P/E is justified, as the average and forward P/E ratios within the Bloomberg GICS Construction & Engineering index range between 17.9x-23.1x.

Investment highlights include:
(i) Strong 3-year revenue CAGR of 73.9%, backed by sector tailwinds
(ii) 8.1% market share, with 75.2% of revenue from commercial fit-out projects
(iii) Strategic entry into Johor to capitalize on JSSEZ-led infrastructure boom
(iv) Active tender pipeline (~RM1.1bn) and average 9 tenders/week
(v) Margin uplift potential via steel and stone fabrication expansion

Research Team, M+
20 May 2025
Forwarded from The Edge Malaysia
Good Morning All,

We issued a technical buy call on Reach Ten Holdings Bhd: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)

Trading catalysts include:
(i) Starlink partnership to unlock Sarawak’s rural broadband potential
(ii) Aggressive network expansion backed by IPO funds
(iii) Stronger earnings despite softer revenue

Research Team, M+
20 May 2025
M+ Market Wrap - 20May25

FBM KLCI: 1,548.87 pts (-7.27pts, -0.47%)
Tuesday’s session saw the local bourse extend its losses, dragged down by banking heavyweights as investors continued to digest lower-than-expected Q1 2025 Malaysia GDP data and cautious broker outlooks on the sector’s earnings. Market breadth was slightly positive, with a gainers-to-losers ratio of 1-to-1. Buying interest in Energy +1.03% heavyweights like YINSON (+5.0 sen) and ARMADA (+1.0 sen) spurred interest in the sector, while the Plantation -0.62% sector declined the most.

Top 3 Active stocks:
VELESTO (5243): RM0.165 (unch)
PEOPLE (0356): RM0.265 (+1.5 sen)
TANCO (2429): RM0.955 (+1.5 sen)

Volume: 2.61 bn (100-bar avg vol: 3.02 bn)
Value: RM1.98 bn (100-bar avg val: RM2.51 bn)
Market Breadth: ⬆️478⬇️458
Crude palm oil: RM3,912 (+RM30)
Dow Futures: 42,819 pts (-66 pts)

**Source: Bloomberg, M+**
Forwarded from MWM Technical View Channel
Forwarded from MWM Technical View Channel
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M+ Market Update – 21May25
Domestic Sectors, Stable Job Pipelines in Focus

US: Wall Street slid, snapping its six-day winning streak, even after one of the world’s largest retailers, Home Depot, posted better-than-expected earnings and reaffirmed its outlook — all against the backdrop of Trump’s protectionist trade policies. Investors have been awaiting further trade developments as US-Japan trade talks are set to take place this week. Notably, Wall Street futures are trading lower at the time of writing. This week, traders will focus on US unemployment claims, Flash Manufacturing PMI, and Flash Services PMI. Meanwhile, Brent crude traded flat around USD65/bbl range, while both Gold and FCPO climbed nearer to USD3,300/oz and RM3,904/MT, respectively.

MY: Tracking Wall Street’s performance, the local sentiment may soften, but we believe investors could shift their appetite towards domestically driven sectors and companies with stable job pipelines. Gamuda’s recent land acquisition could have spillover effect on its long-term construction partner, INTA, while SENDAI’s contract wins of ~RM1.3bn may boost the outstanding order book to RM6.6bn, which may translate to solid earnings visibility over the next 3-4 years, further supporting its share price. With ReachTen’s earnings coming in line with our estimates, the company remains undervalued due to its stable margins and recurring income.

Stocks to watch:

Utility: *GASMSIA*, *MNHLDG*, SCGBHD
Construction: INTA, KERJAYA, *SENDAI*
Other: *HAPSENG*
Consumer: *LHI*
Financial: RHBBANK
Plantation: INNO

Source: M+
Media is too big
VIEW IN TELEGRAM
SAHAM TURUN! Peluang Besar di Sektor Domestik | Gamuda & Kontrak RM1.3 Bilion Sendai

Disclaimer: Maklumat dalam video ini adalah untuk tujuan pendidikan dan maklumat sahaja dan tidak boleh dianggap sebagai nasihat pelaburan. Sebarang keputusan pelaburan adalah tanggungjawab anda sendiri. Sila lakukan kajian dan dapatkan nasihat daripada pakar kewangan yang bertauliah sebelum membuat sebarang keputusan. Pihak kami tidak bertanggungjawab atas sebarang kerugian atau keuntungan yang timbul daripada penggunaan maklumat dalam video ini.
M+ Morning Market Buzz - 21May25

Dow Jones: 42,677.24 pts (-114.83pts, -0.27%)
⬆️ Resistance: 43700
⬇️ Support: 41000

FBM KLCI: 1,548.87 pts (-7.27pts, -0.47%)
⬆️ Resistance: 1620
⬇️ Support: 1520

HSI Index: 23,681.48 pts (+348.76pts, +1.49%)
⬆️ Resistance: 24200
⬇️ Support: 22600

Crude Palm Oil: RM3,908 (-RM4, -0.10%)
⬆️ Resistance: 4080
⬇️ Support: 3720

Brent Oil: $65.38 (-$0.16, -0.24%)
⬆️ Resistance: 68.00
⬇️ Support: 62.20

Gold: $3,290.13 (+$2.40, +0.07%)
⬆️ Resistance: 3370
⬇️ Support: 3060

Source: Bloomberg, M+
Forwarded from The Edge Malaysia
Good Morning All,

Here’s our IPO note on Paradigm REIT: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)

We assign a fair value of RM1.21 per share for PARADIGM, representing a 21.0% upside from its IPO price of RM1.00. This valuation is based on a P/E ratio of 16.0x, pegged to the mid-FY26F DPU of 7.55 sen. We believe the ascribed P/E is justified, as the peer average historical P/E and forward P/E ratios range between 15.4x-22.0x.

Investment highlights include:
(i) Geographically diversified portfolio with large catchment population
(ii) High occupancy levels support stable rental income
(iii) Potential assets injection
(iv) Proactive asset management to drive rental growth and tenant retention
(v) Established sponsor WCT Holdings Berhad

Research Team, M+
21 May 2025
Forwarded from Trade With Maybank
Bursa Malaysia Midday Recap: 5 Days Down

The FBM KLCI extended its downtrend for the fifth session, following weaker Wall Street performance. Market breadth stayed weak, with laggards outnumbering gainers. Construction rebounded after five days of declines, while technology saw a sharper drop than the previous day. Although the energy sector remained in the red, oil prices edged higher, likely driven by geopolitical tensions between Iran and Israel. Meanwhile, gold prices rose as the US dollar weakened and investors sought safe-haven assets amid US fiscal uncertainty.

Our analysts released a SUNCON report highlighting strong performance in earnings, dividends and job wins, prompting an upgrade to BUY with a higher target price of MYR 5.24. Investors eyeing construction exposure may consider SUNCON. For the full report, stock ideas, and market flow updates, access the Discover Tab on the Maybank Trade MY app.

Trade Your Way Forward. Simple, Smart, and Seamless.
#MiddayRecap
Forwarded from Trade With Maybank
Sunway Construction Rises 5.3% on Strong 1Q25 Earnings

Sunway Construction Group (SUNCON) jumped 5.3% to MYR5.14 after reporting a strong 1Q25 yesterday with net profit more than doubling to MYR75.72 million and revenue surging 132% to MYR1.4 billion.

Earnings were boosted by solid progress on data centre and infrastructure projects. SUNCON has completed one data centre and is managing five more, supported by a healthy tender pipeline.

Backed by a MYR6.6 billion order book and active bids in major projects like the Penang LRT and airport expansion, SUNCON expects continued growth ahead.

Bullish investors may consider SUNCON-C32; with a sensitivity of 3.3 ticks, SUNCON-C32 offers greater price responsiveness to movements in the underlying share.

#DailyHighlights
Forwarded from MWM Technical View Channel
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M+ Market Wrap - 21May25

FBM KLCI: 1,544.80 pts (-4.07pts, -0.26%)
Wednesday’s session saw the local bourse extending its losing streak — with Technology stocks posting the steepest decline, as renewed US-China chip trade tensions dampened sentiment. Market breadth tilted negatively with losers outpacing gainers at 649-to-342 stocks. However, Construction stocks (+1.05%) outperformed, with buying interest seen in GAMUDA (+6.0 sen), as the market potentially priced in its recent land acquisition, which spurred broader interest in the sector.

Top 3 Active stocks:
HM (0060): RM0.185 (+0.5 sen)
SCABLE (5170): RM0.030 (-0.5 sen)
MYEG (0138): RM0.900 (+0.5 sen)

Volume: 3.27 bn (100-bar avg vol: 3.03 bn)
Value: RM2.16 bn (100-bar avg val: RM2.51 bn)
Market Breadth: ⬆️349⬇️642
Crude palm oil: RM3,893 (-RM15)
Dow Futures: 42,499 pts (-273 pts)

**Source: Bloomberg, M+**
Forwarded from The Edge Malaysia