KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Shares of Swift Haulage Bhd (SWIFT) fell over 3% to 41.5 sen on Friday, extending Thursday’s losses, after the logistics group’s first-half earnings came in below market expectations.
Earnings Miss
Net profit for the first six months accounted for only ~45% of consensus full-year forecasts. The shortfall prompted at least one research downgrade, while most analysts held off changes pending the upcoming analyst briefing.
Analyst Concerns
Margins & Overheads: Maybank Investment Bank flagged volatility in margins, elevated overhead costs, and competition-driven volume pressure as potential drags on performance.
Market Position: Kenanga Investment Bank, the sole “underperform” call, warned Swift is losing its leading position in Malaysia’s haulage market.
Warehousing Expansion Costs: While warehousing has “tremendous” growth potential from the e-commerce boom, significant start-up costs are expected to weigh on near-term profitability.
Market Reaction & Valuation
At 42 sen, Swift Haulage is valued at ~RM375 million, with year-to-date losses of around 7% despite a rebound from April lows. Current analyst ratings stand at 4 Hold / 1 Underperform.
Outlook
While seasonally stronger volumes in 2H could lend some support, research houses caution that upside drivers may be offset by competitive pressures and rising costs.
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