Malaysia - Market Strategy

[winston]

Malaysia Strategy: 1Q25 wrap Underwhelming but… there is still hope

A generally soft quarter 1Q25 was not a pleasant quarter, being tilted to a negative bias.

Even the banking sector saw misses when they typically have an unblemished track record.

Post-1Q25, we downgraded banks and O&G to NEUTRAL while KLCI earnings growth is moderated to 2.5%/7.7% for 2025/2026E, mainly due to banks.

A key upgrade was Tenaga (BUY from HOLD). With decent upside to key KLCI component stocks, we believe the KLCI still has upside though we have lowered our YE target to 1,660 (from 1,700).

We remain POSITIVE on domestic-driven sectors: consumer, REITs, renewable energy and healthcare. We expect some recovery in 2H25.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/463840.pdf

[winston]

Investors focus on value stocks with liquidity

The stocks in focus include YTL Power International Bhd, IJM Corp Bhd, Sime Darby Property Bhd, and CIMB Group Holdings Bhd.

Kenanga Research said a favourable tariff differentiation outcome would help the tech sector, particularly certain tech stocks such as PIE Industrial Bhd and SKP Resources Bhd who can crystalise their pipeline of potential relocating customers.

Our top market picks see CIMB join the likes of AMMB Holdings Bhd, Tenaga Nasional Bhd, Fraser & Neave Holdings Bhd, Gamuda Bhd and YTL Power but Malayan Banking Bhd is dropped.

Source: The Star

https://www.thestar.com.my/business/bus ... -liquidity

[winston]

Malaysia Strategy From rout to recovery

We expect tariff tensions to ease in 2H25F and remain cautiously optimistic that Malaysia and the US can reach a mutually beneficial trade agreement.

With the Fed projected to resume its rate cut cycle, further narrowing of the FFR-OPR spread should blow tailwinds for the ringgit and local bourse.

Our year-end KLCI target is penned at 1,670 (15x P/E tagged to 2025F EPS). Rock-bottom foreign shareholding offers downside cushion, we opine.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 96937AEBE0