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.
Profit Trails Consensus; Analysts Turn Cautious
Fraser & Neave Holdings Bhd (KL:F&N) shares dropped nearly 3% to RM27.90, a two-month low, after its third-quarter net profit came in at only 68% of consensus full-year estimates, prompting analysts to temper expectations. The miss has ended the stock’s streak of unanimous ‘buy’ calls, with CIMB Securities downgrading to ‘hold’ citing muted earnings prospects and stretched valuations after a six-month rally.
Key Factors Driving Sentiment
Earnings Miss: Weaker international sales dragged results below forecasts.
Valuation Concerns: Recent price gains have priced in its defensive business model.
Guidance: Analysts expect a “flattish” 4Q on softer exports despite stronger Malaysian margins.
Stock Performance
Price: Fell 72 sen to RM27.90, lowest since June 11.
Year-to-Date: Up ~15% since February, outperforming the broader market amid tariff headwinds.
Analyst Views Split
Five of six research houses still maintain a ‘buy’ rating, citing defensive qualities and potential recovery drivers:
Domestic Support: One-off government cash assistance expected to lift 4Q consumption.
Tourism Boost: TA Securities sees gradual tourism recovery aiding Thai operations.
Margin Upside: Cost controls could enhance operational efficiency in Malaysia.
Investment Takeaway:
F&N remains a defensive play in a volatile macro backdrop, but the earnings miss and valuation concerns may cap near-term upside. The focus now shifts to whether 4QFY2025 can deliver stronger sales momentum and margin recovery to meet full-year expectations.
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