Malaysia’s benchmark index retreated as profit-taking in key heavyweights weighed on sentiment, while overall market activity remained active. Summary FBM KLCI fell 0.83% to 1,684.93 , dragged by losses in banking and selected large-cap names, despite steady trading participation. Market Performance FBM KLCI : 1,684.93 (-0.83%) FBM Mid 70: -0.00% (flat) FBM Small Cap: -0.23% FBM ACE: +0.20% Broad market was mixed , with weakness concentrated in large caps. Market Breadth & Trading Activity Total volume: 3.54 billion shares Total value: RM4.19 billion Gainers: 456 Losers: 678 Unchanged: 550 Market breadth turned negative , reflecting cautious sentiment. Top Movers – KLCI Gainers Axiata (6888.MY) +1.54% Petronas Gas (6033.MY) +1.18% Sunway (5211.MY) +1.15% Losers Hong Leong Bank (5819.MY) -3.29% Maybank (1155.MY) -3.02% CIMB (1023.MY) -2.47% Banking sector weakness was the main ...
Malaysia’s consumer stocks are poised for a rebound, supported by a stronger ringgit, according to Singular Asset Management, the country’s top-performing fund. Kok Lin Teoh, founder and chief investment officer, expects better margins for companies as the cost of importing raw materials becomes cheaper, boosting earnings growth in the next two to three years.
Teoh, who manages about US$400 million (RM1.6 billion) across Asia-focused funds, is now shifting the focus of the Singular Value Fund towards domestic consumption-related stocks, including banks and consumer companies, to capitalize on local opportunities. “We are reducing our exposure to export-oriented industries because the ringgit has strengthened, and moving back into more domestic sectors,” he explained.
After hitting a 26-year low, the ringgit has surged 14% in the three months leading up to September, outperforming other emerging market currencies. This, along with rising wages for civil servants and increased disposable incomes, is expected to drive consumer spending and benefit the consumer sector.
While local consumer stocks have lagged, rising just 2.6% this year compared to the 14% gain in the FTSE Bursa Malaysia KLCI Index, Teoh is optimistic about their future. His Singular Value Fund, with a return of 31% this year, has outperformed 95% of its peers, according to Bloomberg data. Teoh is also repositioning into financial stocks and firms that are expected to gain from growing direct investments into Malaysia.
Teoh highlighted the political stability achieved by the Malaysian government as a key factor in attracting foreign investments, positioning the fund to benefit from these investment themes in the coming years.
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