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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Supermax Shares Drop to Nine-Month Low After Reporting Largest Quarterly Loss

Shares of Supermax Corp Bhd, a major glove manufacturer, dropped nearly 5% to their lowest level in over nine months following the announcement of its largest quarterly loss. The stock fell to 78 sen, with a market capitalization of RM2.15 billion, reflecting investor concerns over the company's financial performance.

Key Points:

  1. Significant Quarterly Loss: Supermax reported its largest quarterly loss, leading to a sharp decline in its share price. The company's revenue for FY2024 decreased by 21.4% due to lower sales volume and declining average selling prices (ASPs).

  2. Future Outlook: CIMB Securities expects Supermax to return to profitability by FY2025, driven by improved ASPs and sales volume as supply-demand dynamics in the global glove sector become more favorable. However, margins are anticipated to remain constrained due to the strengthening of the ringgit.

  3. Analyst Recommendations: Despite the expected recovery, CIMB maintains a 'hold' rating on Supermax, lowering its target price from 96 sen to 87 sen. The forecasted core net profits for Supermax are RM31.4 million for FY2025, RM58.1 million for FY2026, and RM80.8 million for FY2027.

The decline in Supermax’s stock price highlights ongoing challenges in the glove industry, particularly in the face of currency fluctuations and changing market dynamics.

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