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.
Despite a sluggish second-quarter earnings season across Bursa Malaysia, CIMB Securities has raised its year-end target and earnings growth forecast for the FBM KLCI, citing stronger-than-expected results from key index constituents.
Earnings Drag: 2Q Off to a Weak Start
CIMB flagged a subdued 2Q2025 performance, with nearly half of its coverage universe missing expectations. Of the 28 companies (32% of its total coverage) reporting results between June 1 and Aug 18:
Only 14% beat estimates
46% missed forecasts
Beat-to-miss ratio: 0.30 (up from 0.24 in 1Q2025)
Weakness was broad-based across several sectors:
Automotive
Gloves
Technology
Consumer
Oil & Gas
Telecommunications
Banking
Major headwinds included soft ASPs, elevated costs, start-up losses, and lower plant utilisation.
KLCI Constituents Show Resilience
In contrast to the broader market, KLCI component stocks fared better. Among the eight index members that reported:
2 beat, 2 missed
Beat-to-miss ratio: 1.0
Notable outperformers:
SD Guthrie Bhd (SDG): Boosted by higher palm kernel prices
AMMB Holdings Bhd (AMBANK): Benefited from lower credit costs
These strong performances helped offset weaknesses elsewhere, prompting:
FY2025 KLCI earnings growth forecast raised to 4.4% (from 3.4%)
Year-end KLCI target lifted to 1,567 (from 1,560)
Key Underperformers Across the Board
Even as some index stocks held up, several others struggled:
Petronas Chemicals (PCHEM): Posted a loss on weak plant utilisation
CelcomDigi (CDB): Missed due to rising operating costs and taxes
Outside the index:
Vitrox (VITROX): Beat on strong delivery volumes
Yinson (YINSON): Boosted by reversal of liquidated damages
But most tech and financial names disappointed:
CTOS, Unisem, VS Industry: Missed expectations; VS saw a 42% YoY profit drop
RCE Capital, LPI Capital, Affin Bank: Earnings weighed by impairments, claims, and weak income
Consumer and glove sectors also faltered:
F&N, MyNews: Dragged by high opex and new business losses
Bermaz Auto: Hit by lower sales
Hartalega, Top Glove: Margins eroded by weak pricing and rising costs
Conclusion
CIMB’s outlook revision highlights the resilience of key KLCI constituents despite a broadly disappointing 2Q earnings season. Still, broader market sentiment remains cautious as operational headwinds persist across several sectors.
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