KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
Earnings Miss Sends Shares to Two-Month Low
Cahya Mata Sarawak Bhd (KL:CMSB) saw its stock plunge as much as 7% to RM1.10, its lowest since June 24, after releasing a weaker-than-expected second-quarter result. As of 9.30am, the counter was trading at RM1.13, giving the company a market cap of RM1.2 billion, with 4.5 million shares traded.
Despite rebounding from April’s lows, the stock has now dipped below its year-to-date starting level.
1H Profit Falls Short — But Not a Full-Year Write-Off Yet
The group’s net profit for 1H25 only made up one-third of consensus full-year estimates, missing analyst expectations. However, some see potential for a rebound in the second half, particularly if:
Construction activity picks up with the drier weather
Phosphate plant commissioning proceeds as planned
“We expect more robust construction activities and the commissioning of its phosphate plant to positively impact earnings in 2H,” — Maybank Investment Bank
Analysts Stay Bullish — Target Price Maintained
Despite the near-term weakness, all three analysts covering CMSB maintain a ‘Buy’ call, with Maybank IB holding its target price at RM1.66 pending Friday’s analyst briefing. The optimism is rooted in:
Seasonal recovery in construction demand
Infrastructure rollout in Sarawak
Strong project pipeline
Catalyst Watch: Borneo Convention Centre & Sarawak Projects
CMSB remains the sole cement producer and major construction materials supplier in Sarawak — a strategic edge as the state gears up for major infrastructure expansion.
The RM550 million Borneo Convention Centre Kuching II project is already underway and is expected to deliver meaningful earnings contributions in the coming quarters, according to MBSB Research.
Investment Outlook: Short-Term Pain, Long-Term Play?
While the Q2 disappointment triggered a selloff, CMSB’s strategic positioning in Sarawak’s construction landscape means long-term fundamentals remain intact.
Key factors to watch:
Cement and aggregate demand recovery
Margins post phosphate plant commissioning
Visibility on upcoming project awards
Investors with a medium-to-long-term horizon may view the current dip as a potential accumulation opportunity, especially if management provides clarity during the upcoming analyst briefing.
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