MONEY MASTER

KUALA LUMPUR, March 28 (Bernama) -- Bursa Malaysia closed lower today on profit-taking after a strong three-day rally, and investor sentiment was further shaken in the late afternoon session following news of an earthquake in Myanmar with tremors felt in neighbouring Thailand, said Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 1.44 per cent or 22.08 points to 1,513.65, its intraday low, from Thursday’s close of 1,535.73. The benchmark index opened 4.16 points lower at 1,531.57 and hit an intraday high of 1,533.52 during the midday session.  On the broader market, decliners outpaced gainers 563 to 395, while 408 counters were unchanged, 1,106 untraded, and 133 suspended.   Turnover slipped to 2.25 billion units valued at RM2.13 billion from 2.52 billion units worth RM2.41 billion on Thursday. 

  Key Takeaways for Investors: Q4 Beat Expectations, But That’s Not the Focus Lululemon posted strong Q4 earnings of  $6.14 per share , beating estimates of $5.85. Revenue came in at  $3.6 billion , up 13% and in line with forecasts. But the stock dropped  5.9% in after-hours  trading. FY25 Guidance Disappoints Wall Street Management expects  FY25 revenue of $11.15–$11.3 billion , which implies growth of just 5%–7%, below the 7% consensus. EPS guidance of  $14.95–$15.15  also missed expectations ($15.37). Soft Q1 Outlook Fuels Concern For Q1, Lululemon sees revenue of  $2.335–$2.355 billion  and EPS of  $2.53–$2.58  — both short of analyst forecasts. This adds to investor anxiety about  slowing consumer demand  and  rising competition . Traffic and Competition Trends Add Pressure In-store traffic dipped in February, while rivals like Alo Yoga saw double-digit growth. Analysts point to rising competition from bran...

  Key Takeaways for Investors: Stocks Retreat Despite Stronger GDP: Major US indexes dipped Thursday even as Q4 GDP was revised up to 2.4%. Markets instead focused on  Trump’s 25% auto import tariffs , reigniting fears of a widening trade war. Automakers Hit Hard: Shares of Toyota, Mercedes-Benz, and GM fell as the tariffs are set to take effect next week. The broader S&P 500 lost  0.3% , while the Nasdaq 100 fell  0.6%  and the Dow slid  0.4% . Tariff Worries Trump Economic Data: Despite upward revisions in GDP and lower inflation revisions, analysts say  investors remain focused on forward-looking risks , including inflation persistence and trade uncertainty. Fed Likely to Hold Rates Steady: Inflation remains "sticky," and the Fed’s preferred gauge —  core PCE  — is expected to show sustained pressure when released Friday. Fed officials are cautious, citing tariff escalation risks. Investor Sentiment Rebounding Slightly: Bearish sentime...

  Key Takeaways for Investors: Tariff Impact Hits Debt Markets:  Auto bonds slumped on Thursday after  President Trump imposed 25% tariffs on imported vehicles , set to start April 3. Yields widened as investor concerns over higher vehicle costs and potential profit erosion intensified. VW & BMW Bonds Under Pressure: Volkswagen’s 5.35% 2030 bonds , issued just last week, saw their spreads widen by 24 basis points to 135 bps. BMW’s 5.4% 2035 bonds  also weakened, with spreads rising 6 basis points to 122 bps. Bonds from  Honda and GM  showed similar lagging performance. Auto Debt Trails Broader Market: Spreads on high-grade auto bonds have  widened 26 bps YTD , more than  double the 10 bps widening  in the overall high-grade corporate bond market. Automakers like  Volkswagen, Toyota, Mercedes-Benz, and Hyundai  are most exposed to rising funding costs. Primary Market Cooling Off:  French parts supplier  Forvia SE  ...

  Key Takeaways for Investors: Vanke and COLI in the Spotlight:  China Vanke and China Overseas Land & Investment (COLI) are set to report earnings next week amid fragile signs of recovery in the property sector. While both face steep profit declines, analysts believe  large write-offs in 2024 may pave the way for a rebound  in 2025. 2024 Was Brutal:  Core earnings for China’s top 5 developers — including Vanke, COLI, China Resources Land, Longfor, and Greentown — are estimated to have  plunged 93% YoY , according to CGS International. Vanke is bracing for a  record RMB45 billion loss , its first annual net loss since listing in 1991. Why There’s Still Optimism:  Bloomberg Intelligence suggests that these deep losses could help clean up balance sheets, improve 2025 earnings, and open doors to  future equity financing , which is vital for liquidity.  Government policy support  remains a key factor, with more cities easing housing...

  Key Takeaways for Investors: New 25% Tariff on All Auto Imports:  President Donald Trump signed a proclamation to impose  25% tariffs on all imported cars , effective  April 3 . The move escalates trade tensions and is expected to  raise car prices  for US consumers. Canada & EU in the Crosshairs:  Trump warned of even  steeper tariffs on Canada and the EU  if they coordinate economic actions against the US. Canada, which sent nearly  US$35 billion in auto exports  to the US last year, is likely to be hit hard. Tesla Gains from Domestic Production:   Tesla is seen as the biggest winner  in this tariff war. Its EVs are  manufactured in Texas and California , largely shielding it from the auto import levies. Ford may fare better than foreign brands too, with 80% of its US sales made domestically. Wall Street M&A Slows:  Despite hopes of a Trump-era dealmaking boom,  only seven US$10B+ deals  hav...

  Key Takeaways: US GDP rose 2.4%  in Q4 2024, higher than the previous 2.2% estimate, signalling  stronger-than-expected economic momentum  at year-end. The upgrade was driven by  net exports, government spending, and business investment . However,  consumer spending growth was revised down  to 4%, still solid but less robust than initially reported. The  Fed’s preferred inflation gauge  — core PCE — was revised  down to 2.6% , a small but notable relief as markets brace for the February PCE report on Friday. Another key indicator,  Gross Domestic Income (GDI) , surged  4.5% , marking a notable rebound from the previous quarter. The average of GDP and GDI stood at  3.5% , the best in a year. Jobless claims  remained steady, suggesting the  labour market is still resilient , with continuing claims dropping to a one-month low. Still,  economic forecasts for 2025 remain cautious , with concerns growing over...

  Key Takeaways: US stocks dipped  on Thursday as investor focus shifted from strong GDP data to  heightened trade war fears , following Trump’s confirmation of a  25% auto tariff . The  S&P 500 fell 0.3% , on track for its  worst quarter since 2023 . The  Nasdaq 100 lost 0.6%  and the  Dow Jones dropped 0.4% . Automakers were among the hardest hit.  General Motors, Toyota, and Mercedes-Benz  all declined. Trump warned of  more severe action  if the  EU and Canada retaliate . While the fourth-quarter US GDP growth was revised higher and inflation data was adjusted lower, analysts say markets remain focused on the  current economic environment , not past performance. The bond market reflected inflation concerns, with  short-dated Treasuries outperforming , and the  10-year yield rising to 4.36% . Investors now await the  PCE inflation report  on Friday — the Fed’s preferred gauge — which ma...

  Key Takeaways: Trump’s 25% import tariff on cars and light trucks , expected to take effect next week, could  push US car prices even higher , especially affecting  low-cost models  built overseas by brands like  GM, Ford, Kia, and Hyundai . Americans already face rising vehicle costs , and the latest tariffs risk further  squeezing consumers  and disrupting  automotive supply chains , particularly at the  entry-level market segment . Mexico, Japan, and South Korea , the largest sources of US car imports, will be among the  hardest hit . The  EV market could see selective benefit , with at least one electric carmaker poised to gain from the shake-up. Market Reaction : Shares of major automakers, including  Toyota, Mercedes-Benz, and GM , fell as investors weighed the impact of worsening  global trade tensions . Despite calling these tariffs “permanent,” Trump has recently backtracked on some trade threats —  offerin...

  Key Takeaways: Boston Fed President Susan Collins  says it’s  likely appropriate  to keep interest rates  steady for a longer time , citing growing economic uncertainty. Speaking at a Thursday event hosted by  100 Women in Finance  and others, Collins noted that  tariffs from the White House may temporarily boost inflation , though the timing of when price pressures ease remains unclear. She also flagged  a potential slowdown in business activity , with firms appearing to adopt a  "wait-and-see" approach  amid policy shifts and market jitters. Despite recent weak sentiment surveys, Collins emphasized that  fundamental strengths in the economy remain intact , warning against letting negative narratives drive a self-fulfilling slowdown. Why It Matters: Collins’ comments support the Fed’s  patient stance  on rate cuts, reinforcing the narrative that policymakers  won’t rush to ease  despite soft patches in da...

  Key Takeaways: PPI Eases:  Malaysia’s  Producer Price Index (PPI)  for local production rose  0.3% year-on-year (YoY)  in February 2025, down from  0.8% in January , signaling  moderating cost pressures  at the producer level. Agriculture Drives Growth: The  agriculture, forestry and fishing  sector continued to lead, up  15.2% YoY , driven by a  26.1% surge in  perennial crops . Mining Sector Contracts Sharply: Mining output  fell  9.7% YoY , deeper than January’s 1.3% drop, due to declines in  crude petroleum (-9.8%)  and  natural gas (-9.4%) . Manufacturing Softens: Manufacturing PPI fell  0.3% YoY , a smaller drop than January’s 0.6%. Biggest declines: Coke & refined petroleum products (-12.7%) Computer, electronic & optical products (-3.2%) Utilities: Electricity & gas supply  dipped  0.2% Water supply  remained resilient with a  2.9%  increase....

  Key Takeaways: Stronger Sector Outlook:  Fitch Ratings expects  Malaysia’s takaful sector  to maintain strong growth in 2025, backed by  regulatory reforms, digitalisation , rising  public awareness , and  macroeconomic stability . Upcoming Regulatory Enhancements: RBC2 Framework  (effective Jan 2027) will align capital standards with global norms, including new  catastrophe risk charges  and revised  reserve requirements . Hajah and Darurah Policy  (implemented Jan 2025) now clarifies when conventional reinsurance can be used in takaful, especially under fund-threatening scenarios. Refined digital insurer entry rules  (from Mar 2025) to ensure early-stage viability and drive innovation. Medical Takaful in Focus: Rising health claim costs  due to medical inflation have prompted  gradual repricing  and the introduction of  co-payment rules  since Sept 2024 to manage affordability. Profitability an...

  Key Takeaways: Passenger Growth:  Malaysia recorded  8.7 million air passengers  in February 2025, up  6.9% YoY  from the same month last year. Slight Monthly Dip:  Traffic declined  5.9% MoM , but travel demand remained strong due to  school holidays, visa exemptions , and  new routes . Domestic vs International: Domestic traffic:  4.3 million (+6.6% YoY) International traffic:  4.4 million (+7.2% YoY), making up  51.5%  of total passenger volume YTD. Strong Non-ASEAN Travel: Non-ASEAN passengers:  2.6 million (+10% YoY) ASEAN passengers:  2.2 million (+4.4% YoY) Busy Airports: KLIA (+7.2%) Penang (+8.7%) Senai (+6.9%) Kota Kinabalu (+5.3%) Langkawi (+2.3%) Kuching (+1.7%) Boosting Factors:  Higher seat capacity,  visa exemptions for China and India , and new routes like  Kota Kinabalu–Tokyo ,  KL–Ürümqi , and  Penang–Zhangjiajie  supported growth. Outlook for 2025:  MAV...

  Key Takeaways: Back in the Black:  Sapura Energy reported a profit after tax and minority interest of  RM189 million  for FY25, a strong turnaround from a  RM509 million loss  in FY24. Revenue Growth:  Group revenue rose  8.9%  year-on-year to  RM4.7 billion , driven by solid performance in its  Engineering & Construction  and  Operations & Maintenance  segments. EBITDA Performance:  The Group posted  RM524 million  in EBITDA for the financial year ended January 31, 2025. Debt Restructuring Progress:  The majority of financiers under its multi-currency financing have granted  Approval-in-Principle  for the company’s proposed restructuring scheme. Strong Order Book:  Sapura Energy’s group order book now stands at  RM8.5 billion , with an additional  RM5.5 billion  held through joint ventures and associates — the  highest level in recent years . PN17 Exit ...

All eyes are on the Fed’s favorite inflation gauge this Friday — and the market might not like what it sees. After a brief sigh of relief from softer CPI and PPI earlier this month,  February’s Personal Consumption Expenditures (PCE) data is expected to show that inflation hasn’t cooled further — and might be getting stickier. Key Takeaways: 1. Headline PCE Expected to Hold Steady Total PCE inflation is forecasted at  +0.3% MoM  and  2.5% YoY  —  unchanged from January . Even Fed Chair Jerome Powell hinted at the same 2.5% figure. 2. Core PCE Might Tick Higher Core PCE (ex-food & energy) is projected at  +0.3% MoM  and  2.7% to 2.8% YoY  — slightly hotter than January. Key drivers: rising  goods prices ,  healthcare , and  financial services . 3. Why This Matters for Investors The Fed won’t tolerate inflation drifting further from its  2% target . If Friday’s data is sticky,  rate cuts may get delayed  o...

The  FBM KLCI surged 1.16% to 1,535.73 , hitting a  two-week high  on Thursday, buoyed by  gains in banking and energy stocks , even as  Wall Street dipped  on  Trump’s proposed 25% tariffs on imported vehicles . Market Summary Wall Street Recap S&P 500:  5,693.31 ( -0.33% ) Dow Jones:  42,299.70 ( -0.37% ) Nasdaq:  17,804.03 ( -0.53% ) Market sentiment was cautious as Trump’s  auto tariffs reignited trade tension fears , especially impacting the tech-heavy Nasdaq. Bursa Malaysia Highlights FBM KLCI:  1,535.73 ( +1.16% ) Top Gainer:   Gamuda (RM4.32, +7.73%) Top Loser:   Axiata (RM1.84, -1.60%) USD/MYR:  4.4315 ( +0.05% ) KLCI saw its  strongest single-day gain since March 13 , reflecting  local resilience and limited exposure to U.S. auto trade . Economic & Sectoral Developments Producer Price Index (PPI): Feb 2025 PPI growth  slowed to 0.3% y-o-y  (from 0.8% in Jan), driven by  ...

HI Mobility (5335.MY)  made a  strong debut on Bursa Malaysia’s Main Market , opening at  RM1.27 , hitting a high of  RM1.33 , and closing at  RM1.30 , marking a  6.56% gain  from its IPO price of  RM1.22 . IPO Performance & Demand Trading Volume:  98.4 million shares Closing Price:  RM1.30 Oversubscription: Overall:  6.57x Public:  10.12x Bumiputera:  3.03x This indicates  strong investor appetite , especially from the public segment, for HI Mobility's growth potential in the transportation and EV sectors. IPO Fund Allocation (RM115.9M Raised) 60.4%:  Expand bus fleet (electric + ICE vehicles) 12.9%:  Build EV charging infrastructure 4.4%:  AI for vehicle monitoring & driver management 22.3%:  Working capital & listing expenses Focus on sustainability and smart mobility  positions the company well in the green transport movement. Market Cap & Advisory Estimated Market Cap: ...

UK government bonds (gilts) fell sharply , erasing Wednesday’s gains, as markets shifted focus from a smaller debt plan to  long-term fiscal concerns  and the threat of rising global borrowing costs. Key Market Moves: 10-year gilt yield surged to 4.81% , highest since mid-January Gilts  underperformed European peers  as investor optimism faded Market concerns include: Limited fiscal headroom Potential shocks  (like global rate hikes or US tariffs) What’s Fueling the Selloff? Despite Chancellor  Rachel Reeves restoring her fiscal buffer , analysts say the UK remains  vulnerable to external shocks . The  Office for Budget Responsibility (OBR)  warned Reeves’ buffer could be wiped out if: Trump imposes 20% tariffs globally Borrowing costs rise by just 0.6% Fiscal Uncertainty Ahead Autumn budget in October  could bring  tax hikes or spending cuts . OBR estimates a  46% chance of Reeves breaking her fiscal rule  (taxes funding ...

After a red-hot start to 2025,  China’s tech rally is losing steam . Despite big promises in artificial intelligence (AI), investors are demanding  real earnings growth and clear macro signals  to stay bullish. Hang Seng Tech Index Stalls The  Hang Seng Tech Index  came close to correction territory this week. Only  Alibaba  saw notable post-earnings gains, thanks to its  US$53 billion AI investment plan  over the next three years and continuous AI product rollouts. Other tech giants like  Tencent ,  Baidu ,  JD.com , and  Meituan  failed to impress, despite  beating earnings expectations . AI Hype Isn’t Enough (For Now) DeepSeek’s breakthrough had  sparked a 25% year-to-date gain , but now  markets want more than hype . “Share prices have run ahead of earnings,” noted Andy Wong of Solomons Group. Investors need  tangible AI monetization and sustained business improvement , especially as  core...

President Trump’s new 25% import tariffs on foreign cars  are poised to deal a major financial hit to Germany’s top carmakers — with  Porsche AG and Mercedes-Benz Group AG  taking the brunt of the impact. What’s Happening: New tariffs take effect April 3 , potentially slashing around  25% of Porsche and Mercedes’ 2026 projected operating earnings , according to Bloomberg Intelligence. The  estimated hit: €3.4 billion (US$3.7 billion or RM16.2 billion) . Automakers may have to  raise prices or shift more production to the US  to absorb the blow. Market Reaction: Porsche shares fell 5% ,  Mercedes down 5.2% ,  BMW -4.9% ,  Volkswagen -4.3% , and  Aston Martin tumbled 8.9%  in London. The tariffs  threaten Europe’s export-heavy auto industry , particularly  German brands , which ship a large portion of their high-margin vehicles like the  Porsche 911  and  Mercedes S-Class  to the US. Industry Concern...

As dividend season heats up, investors are eyeing which  Malaysian bank gives the most back to its shareholders —and  Maybank (1155.MY)  is clearly leading the pack with a  generous 73% dividend payout ratio . What is Dividend Payout Ratio? It measures how much of a company’s net earnings are returned to shareholders as dividends. Formula: Per-share:  DPS / EPS × 100% Aggregate:  Total Dividends / Net Profit × 100% Example:  If Maybank earns 83.61 sen per share and pays 61 sen in dividends →  73% payout  = RM73 returned for every RM100 earned. Who’s the Most Generous? MAYBANK – 73% payout : Prioritizes shareholder rewards with stable, high cash returns. HLBANK : More conservative—prefers reinvesting for growth and resilience. CIMB, RHBBANK, PBBANK : Balanced strategy—combines dividends with regional expansion and risk management. Why a High Payout Ratio Matters 1. Real Cash Flow:  Great for income-seeking investors like retirees. 2. Matu...