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...
Shares of Padini Holdings Bhd (KL:PADINI) tumbled on Thursday after the apparel retailer reported its weakest fourth-quarter earnings since 2009, raising concerns over consumer spending power and rising costs.
Steep Earnings Decline
4QFY2025 net profit: RM6.98 million, down 73.5% YoY from RM26.31 million.
This marks Padini’s lowest quarterly profit in 16 years.
Revenue contracted, driven by weaker same-store sales growth and cautious consumer sentiment.
Market Reaction
The stock dropped 7.2% (–15 sen) to RM1.93, its lowest since March 2025.
Market value stood at RM1.9 billion at the time of writing.
Analyst Downgrades and Revisions
Kenanga Research
Cut FY2026 earnings forecast by 3%.
Lowered target price to RM2.35 (from RM2.45).
Maintains “Outperform”, citing:
Value-for-money apparel appeal among budget-conscious consumers.
Strengthening MYR could reduce import costs.
Strong net cash supports inventory efficiency.
TA Securities
Trimmed FY2026–FY2027 earnings by 4.5%.
Reduced TP to RM2.40.
Retains “Buy”, highlighting:
Ongoing Vincci brand repositioning into standalone outlets (higher-margin segment).
Planned expansion of 4–8 new outlets in FY2026 (current network: 156 outlets).
Outlook
Despite its weakest quarter in over a decade, Padini retains analyst backing thanks to its:
Value retail positioning, which resonates in a cost-conscious consumer environment.
- Brand repositioning efforts and store expansion plans, offering medium-term growth levers.However, sustained margin pressure and slowing consumer demand remain near-term challenges.
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