KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Earnings Outlook
CIMB Securities projects Telekom Malaysia’s (KL:TM) 2QFY2025 core net profit (CNP) to grow 4%-9% YoY to RM410–RM430 million, driven by net interest cost savings and normalised tax rates. This represents 48%-49% of CIMB’s full-year forecast and is deemed in line with expectations. TM will release results on Aug 29.
Revenue Trends
Total revenue is expected to remain soft, potentially 0%-4% lower YoY, amid intense fibre broadband competition. Internet revenue (39% of group total) may fall 4%-5% YoY on slower subscriber growth and lower ARPU. TM Global is seen posting a 1%-3% YoY increase, while TM One’s revenue may drop 9%-11% without last year’s MYTV settlement.
Operational Highlights
CIMB expects lower Unifi acquisition, staff, and other costs to offset higher 5G access fees. Net interest costs are projected to halve YoY to RM25m–RM30m on reduced debt. TM Global’s revenue is set to improve in 2H2025 from subsea cable upgrades and U Mobile 5G fibre backhaul.
Valuation
CIMB maintains its Buy rating with a TP of RM7.55. TM shares traded at RM7.06 (-1%) on Friday, valuing the company at RM27.3 billion. Dividend per share for 1H2025 is expected at 12.5 sen (1.8% yield).
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