KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
The Asean region is experiencing a significant increase in electric vehicle (EV) sales, particularly in Malaysia, Indonesia, and Vietnam, while Thailand presents a mixed performance, according to a report by Maybank Investment Bank Bhd (Maybank IB).
Key Insights:
EV Sales Growth in Asean:
- Malaysia: EV registrations rose by 142% year-on-year to 10,663 fully electric cars in the first half of 2024 (1H2024).
- Indonesia: EV sales surged by 104% to 11,943 units.
- Singapore: EV sales increased by 218% year-on-year, reaching 6,019 units and surpassing the 2023 total.
- Thailand: Despite a strong start in January 2024, the market has shown mixed results throughout the year.
Driving Factors:
- Favourable regulations and incentives for EV adoption.
- The presence and expansion of local EV brands.
- Increased penetration by Chinese carmakers in the region.
- Maybank IB emphasizes a preference for Asean companies that collaborate with Chinese carmakers in manufacturing and sales, as well as those involved in the battery value chain.
Global EV Market Trends:
- Global EV sales rose by 24% to 6.7 million in 1H2024, accounting for 21% of total car sales.
- Sales of full EVs grew by 13.9% year-on-year, while plug-in hybrid sales accelerated by 59% year-on-year.
- Hybrid vehicles saw faster growth due to several factors:
- Saturation and the end of EV subsidies in Europe.
- Weaknesses in the US market.
- Lack of charging infrastructure and range anxiety.
- Recent tariff increases on China-made cars in the US and Europe are expected to impact EV sales further.
Market Outlook:
The robust growth in Asean EV sales reflects a broader global shift towards electric mobility, driven by regulatory support and increasing consumer interest. However, challenges such as infrastructure development and international trade policies remain critical factors influencing market dynamics.
Maybank IB's report highlights the strategic importance of partnerships between Asean companies and Chinese carmakers, as these alliances are likely to enhance competitiveness and drive further growth in the EV sector. The region's performance underscores its potential to become a key player in the global electric vehicle market, with Malaysia, Indonesia, and Vietnam leading the charge.
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