KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Genting Malaysia Bhd (KL:GENM) saw its stock rise on Friday following a sharp earnings rebound, but analysts warn that cost pressures and overseas uncertainties could cap further upside.
Earnings and Market Reaction
Earnings: Quarterly profit surged more than fivefold, though first-half results remained largely in line with consensus estimates.
Stock Move: Shares gained over 5% in morning trade, hitting RM2.08 before easing to RM2.02 at the midday break.
Market Cap: At last trade, Genting Malaysia was valued at RM12 billion.
YTD Performance: Shares are still down about 10% in 2025, weighed by concerns over its acquisition of loss-making Empire Resorts Inc.
Key Headwinds
Rising Costs:
Expansion of the sales and service tax (SST).
Higher electricity tariffs.
Mandatory employer pension contributions for foreign workers.
Foreign Operations: Volatility and challenges abroad continue to present risks for Malaysian earnings, despite the recovery in 2Q.
Analyst Views
Cautious Outlook:
Research coverage: 11 Hold, 4 Sell, 3 Buy.
Average TP: RM2.06 (implying <2% upside).
Concerns Highlighted:
“Patchy earnings delivery and dividend payouts now lower than during Covid-19,” noted CGS International, which downgraded the stock to Reduce.
Hong Leong Investment Bank flagged cost inflation and foreign exposure as key risks.
Investment Takeaway
While Genting Malaysia’s Q2 rebound lifted near-term sentiment, the sustainability of its earnings recovery is under scrutiny. With weak dividend visibility and looming cost pressures, analysts broadly see limited upside potential for the stock at current levels.
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