September 2025

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Showing posts from September, 2025

Market Daily Report: Bursa Malaysia Pares Earlier Gains To Close Flat On Caution

KUALA LUMPUR, Sept 30 (Bernama) -- Bursa Malaysia pared earlier gains in the session to close flat on Tuesday, as investors adopted a cautious stance ahead of domestic policy announcements and on worries over a US government shutdown, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) tilted up 0.93 0f-a-point, or 0.06 per cent, to 1,611.88, up from Monday’s close of 1,610.95. The benchmark index opened 0.87 of a point higher at 1,611.82 and moved between 1,608.69 and 1,619.11 throughout the trading session. The market breadth was almost equally balanced, with decliners marginally outnumbering gainers 557 to 549. A total of 503 counters were unchanged, 1,006 untraded, and 81 suspended. Turnover narrowed to 3.47 billion units valued at RM3.16 billion, from 3.77 billion units worth RM2.47 billion on Monday. Research firm IPPFA Sdn Bhd director and country economist Mohd Sedek Jant...

VS Industry Posts 4Q Loss as US Tariffs Hit Hard

Tariff Shock Pushes Firm Into the Red Electronics manufacturing services provider VS Industry Bhd (KL:VS) slipped into a net loss of RM33 million in 4QFY2025 , compared with a net profit of RM126.6 million a year earlier. Revenue tumbled 29% y-o-y to RM858.8 million from RM1.21 billion, as US reciprocal tariffs triggered sharper-than-expected adjustments from customers. Additional Headwinds Beyond weaker sales, the group’s results were weighed down by: Cost-down pressures from customers Start-up losses at its Philippines operations Impairments on trade receivables and plant & equipment No dividend was declared for the quarter. For the full FY2025, net profit plunged 85% y-o-y to RM36.7 million , while revenue fell nearly 11% to RM3.79 billion from RM4.25 billion. Outlook: Challenging but Improving VS Industry expects operating conditions to remain challenging , with performance tied to consumer senti...

Asian Stocks Edge Higher, Gold Hits New Peak as US Shutdown Looms

Cautious Gains Across Asia Asian shares moved higher on Tuesday while gold climbed to another record, as investors weighed the growing risk of a US government shutdown that could delay key economic data. The MSCI Asia-Pacific ex-Japan index rose 0.5%, putting it on track for a 5.6% monthly gain — its best in a year . Japan’s Nikkei slipped 0.3% , extending a three-day decline, while traders looked ahead to political developments at home. China’s PMI remained in contraction at 49.8 in September, signaling continued weakness in manufacturing, though slightly better than August’s 49.4 reading. Shutdown Clouds Fed Outlook US Vice President JD Vance warned that the government appeared “headed to a shutdown” as talks between President Donald Trump and Democratic leaders stalled. A closure would halt the release of this week’s crucial employment report, leaving only partial indicators such as the JOLTS job openings data due later Tues...

OKX Enables Stablecoin Payments at GrabPay Merchants in Singapore

First-of-Its-Kind Integration with GrabPay SINGAPORE (Sept 30): Cryptocurrency exchange OKX has rolled out a new service that allows its customers to pay with stablecoins at merchants on Grab’s payment platform, GrabPay , marking a first for the city-state. The service, called OKX Pay , lets users make payments in USDC or USDT , which are then automatically converted into StraitsX’s XSGD — a Singapore dollar-backed stablecoin. Merchants ultimately receive the amount in Singapore dollars , ensuring a seamless experience on their end. Growing Stablecoin Adoption in Singapore The move underscores Singapore’s growing role as a hub for digital asset innovation and signals increasing mainstream acceptance of blockchain-based payments. Stablecoins, pegged to fiat currencies, are gaining traction globally for their low transaction costs and fast settlement speeds . Earlier this year, Metro department...

Nvidia vs. Tesla: Which Stock Holds the Edge for the Rest of 2025?

Nvidia Leads Year-to-Date, Tesla Surges in September Nvidia ($NVDA) remains the top performer among the Magnificent 7 this year, while Tesla ($TSLA) delivered a remarkable 32% rally in September . With both stocks facing pivotal catalysts in the coming months, investors are weighing which name offers the stronger case into year-end. Nvidia: AI and Data Center Momentum Key Catalysts Ahead Oct 6: OpenAI DevDay – Potential updates on model launches and inference costs could directly impact Nvidia’s AI ecosystem. Oct 13: Oracle AI World – Focus on second-tier cloud and AI infrastructure partnerships. Oct 16: TSMC Q3 Earnings – Market attention on CoWoS packaging capacity and N2 process ramp. Oct 28: Nvidia GTC Keynote (DC20) – CEO Jensen Huang expected to update on GPU platforms, networking and public sector demand. Nov 19: Q3 FY26 Earnings – Focus on data center revenue , GB200 shipments, and gross margins. Technical Setup Nvidia recently broke abo...

Budget 2026: Growth, Reforms and Fiscal Discipline in Focus

Balancing Fiscal Prudence and Rakyat-Centric Support With Budget 2026 set for tabling on 10 October , economists at RHB Research expect the government to strike a careful balance between fiscal consolidation and growth-friendly reforms. The fiscal deficit is projected to narrow to 3.5% in 2026 and 3.2% in 2027 , underpinned by an estimated RM89 billion in development spending — the first year of the 13th Malaysia Plan (13MP) . “Budget 2026 represents the last major opportunity for the unity government to implement meaningful reforms before political considerations ahead of GE16 dominate in 2027,” RHB noted. Reform Momentum Building, But Challenges Remain Key measures rolled out in 2025 — including the expanded Sales & Service Tax (SST) and the start of RON95 subsidy rationalisation — are expected to be refined further to exclude higher-income groups. Savings from subsidy rationalisation are lik...

Australia’s RBA Holds Rates at 3.60%, Signals Caution on Inflation

Policy Pause Amid Uncertain Outlook The Reserve Bank of Australia (RBA) on Tuesday kept its cash rate unchanged at 3.60% , aligning with market expectations. The central bank noted that recent data suggests third-quarter inflation may run hotter than forecast , highlighting lingering uncertainty in the economic outlook. Governor Michele Bullock emphasized the RBA’s data-dependent approach, saying the board will reassess in November with a fuller picture of inflation, labour market trends, and updated forecasts. “That could mean a couple more reductions. It might not. I don’t know at this point and we will look at all this again in November,” she told reporters. Market Reaction and Rate Expectations The more cautious tone dampened hopes for near-term rate cuts. The Australian dollar strengthened 0.4% to US$0.66 , while three-year bond futures slipped, reflecting diminished easing bets. Swaps now price in just a 36% probability of a November cut ...

Malaysia’s Insurance and Takaful Sector Holds Steady Despite Rising Costs

Stable Outlook Backed by Strong Capital Buffers RAM Ratings has reaffirmed its stable outlook on Malaysia’s insurance and takaful industry, citing robust capital positions that provide resilience against market volatility. While persistent medical cost inflation and competitive pricing pressures weigh on earnings, the sector’s solid buffers are expected to help players withstand external uncertainties. “Growth in life/family takaful and non-life segments will likely slow in 2025 amid affordability concerns and lingering cost-of-living pressures. Still, capital buffers are sufficient to absorb potential shocks,” said Sophia Lee , Senior Vice President of Financial Institution Ratings at RAM. Longer-term fundamentals are expected to strengthen as Bank Negara Malaysia’s risk-based capital reforms , slated for 2027 or later, enhance system resilience. Several insurers have already begun managing capital needs ahead of the reforms. Growth Moderation Across Life...

2025 Q3 Bursa IPO Recap: Icents Group Leads, Kopi Extends Post-Listing Surge

Fresh Optimism Returns to IPO Market After nearly two months of subdued activity, Malaysia’s IPO market regained momentum in September with the debuts of JS Solar (JSSOLAR, 0369.MY) and Express Powerr (XPB, 0370.MY) . Both stocks delivered strong first-day gains — 29% and 12.5% , respectively — sparking hopes of a broader IPO rally on Bursa Malaysia. Icents Group Doubles Since Listing Among the eight companies listed in Q3, Icents Group (ICENTS, 0366.MY) emerged as the quarter’s standout performer. Specializing in cleanroom solutions, the stock delivered the highest debut-day returns and has since more than doubled in value , making it the best-performing IPO of the quarter. Kopi’s Expansion Story The strong performance of new listings mirrors earlier IPO success stories, most notably Kopi (KOPI, 0338.MY) . The F&B operator has surged from RM0.80 in August to RM1.41 , supported by rapid outlet expan...

Trump Imposes New Tariffs on Lumber and Furniture Imports

Fresh Tariff Wave Announced US President Donald Trump announced new duties on imported wood and furniture, citing national security concerns. Effective Oct 14 , tariffs will be set at 10% on timber and lumber and 25% on kitchen cabinets, bathroom vanities, and upholstered furniture . The duties fall under Section 232 of the Trade Act of 1974 , the same mechanism used for steel and aluminum tariffs. Higher Duties in 2026 The proclamation warns of steeper rates from Jan 1, 2026 , with tariffs on upholstered wooden products rising to 30% , and kitchen cabinets and vanities surging to 50% for countries without tariff-reduction agreements with the US. National Security Justification Trump argued that heavy reliance on imports threatens the domestic wood industry, which is critical to defense infrastructure and supply chains . Wood products are used in housing, storage, transportation of munitions, and even in missile de...

China-Malaysia Usher in ‘Golden 50 Years’ With Strong Trade, Tourism Ties

Trade Momentum Strengthens Malaysia-China bilateral trade reached US$131.84 billion (RM555.8 billion) in the first eight months of 2025, underscoring robust momentum as both nations enter the “Golden 50 Years” of diplomatic relations. China has remained Malaysia’s largest trading partner for 16 consecutive years , accounting for RM484.12 billion in total trade in 2024, or 16.8% of Malaysia’s global trade. Tourism Rebounds Tourist arrivals from China surged to a historic 2.78 million visitors in the first seven months of 2025 , reflecting deepening people-to-people exchanges and recovery in travel flows. High-Level Visits Elevate Ties China’s Ambassador to Malaysia, Ouyang Yujing, highlighted that state visits by Chinese President Xi Jinping and Premier Li Qiang , alongside Malaysian Prime Minister Anwar Ibrahim’s visits to China this year, have boosted momentum. Both nations agreed in April to build a high-level strategic community with a ...

Market Daily Report: Bursa Malaysia Closes Marginally Higher Amid Positive Regional Sentiment

KUALA LUMPUR, Sept 29 (Bernama) -- Bursa Malaysia closed marginally higher on Monday, in tandem with the positive performance of regional peers, said an analyst. At 5 pm, the FBM KLCI added 1.90 points to end at 1,610.95, compared with last Friday’s close. The benchmark index opened 0.70 of a point higher at 1,609.75, and moved between 1,606.76 and 1,613.53 throughout the day. The market breadth was, however, negative with decliners outnumbering gainers 645 to 459, while 487 counters were unchanged, bursa09292025.jpg 1,057 untraded, and 124 suspended. Turnover narrowed to 3.77 billion units worth RM2.47 billion, from 4.16 billion units worth RM3.17 billion on Friday.

Maybank IB Upbeat on Press Metal, Flags U.S. Dollar Risks

Aluminium Prices Hit One-Year High Maybank Investment Bank (Maybank IB) remains positive on Press Metal Aluminium Holdings Bhd (PMETAL) as aluminium prices climb to their highest in a year amid tight global supply. Prices on the London Metal Exchange (LME) rose to US$2,737 per tonne in September , already exceeding Maybank’s year-end forecast of US$2,550 per tonne . The research house highlighted that inventories remain near multi-decade lows, while sanctions on Russia and China’s 45 million tonne production cap continue to squeeze supply. High energy costs have also led to smelter shutdowns in some regions, adding to the deficit risk. U.S. Dollar Weakness a Key Earnings Headwind While a weaker greenback could support aluminium demand globally, Maybank IB cautioned that it poses a downside risk for Press Metal’s earnings. This is because the company earns revenue in U.S. dollars but reports in ringgit . Maybank estimates that a 5% depreciation o...

Asian Stocks Edge Higher, Dollar Softens as U.S. Shutdown Looms

U.S. Government Funding Standoff Asian equities mostly gained on Monday while the U.S. dollar eased, as investors weighed the risk of a U.S. government shutdown. President Donald Trump is set to meet Congressional leaders later in the day in a last-minute bid to extend government funding. Without an agreement, a shutdown would begin Wednesday — coinciding with the start of new tariffs on heavy trucks, patented drugs, and other goods . A prolonged closure could complicate the Federal Reserve’s policy decisions, as official economic data releases such as payrolls would be delayed. “If the shutdown lasts beyond the Fed meeting, the Fed will rely on private data,” Bank of America wrote, adding this could slightly reduce the chances of an October rate cut. Fed Outlook and Economic Impact Markets currently price a 90% chance of a Fed cut in October , and a 65% probability of another in December . Analysts estimate that each week of shutdown could shave just 0.1 percent...

Nike Q4 Earnings Preview: Analysts Brace for Weak Results

Consensus Estimates Revenue: $10.71B expected (vs. $12.61B a year ago) EPS: $0.12 expected (vs. $0.99 a year ago) Nike has a history of beating EPS estimates in 7 straight quarters , but stock reactions have been negative — it has traded lower after 8 of its last 9 earnings reports . Expert Views Jay Woods (Freedom Capital): Stock is down 66% from 2021 highs . “Things aren’t looking good” — inventories and tariff risks weigh. Suggests waiting for a breakdown near $52 before buying. Tom Nikic (Needham): Maintains Buy , cuts PT to $66 (from $75). Says Street’s FY26 expectations are too high given tariff pressures. Notes turnaround will take time despite leadership changes. Lorraine Hutchinson (BofA Securities): Maintains Buy , PT $80 . Believes Q4 could mark peak pressure on sales/margins. Highlights strong Spring ’26 innovation pipeline and opportunities in wholesale. Other A...

Top Glove’s Final Quarter Seen Only Marginally Better

Modest Earnings Uptick Expected Top Glove Corp Bhd (KL:TOPGLOV), the world’s largest rubber glove maker, is likely to post only slight quarter-on-quarter earnings improvement in its fiscal 4QFY2025, according to Phillip Capital. Projected net profit: RM22–23 million, versus RM21.5 million in 3QFY2025. This would mark a turnaround from the net loss of RM50.5 million in 4QFY2024. The improvement is underpinned by higher utilisation rates, with the company running at 74% capacity on stronger US orders. Headwinds: Prices and Currency Pressure Despite better volume, Phillip Capital warned that: Softer average selling prices (ASPs) and A stronger ringgit against the US dollar will weigh on margins. The research house has cut its target price by 12 sen to 59 sen , citing persistent structural challenges that cap earnings recovery. Competitive Pressures Intensify Global oversupply continues to plague the glove sector, with: Chinese riv...

Maybank, CIMB, RHB Become Substantial Shareholders in Vantris Energy

Debt Restructuring Brings in Major Banks Three of Malaysia’s largest banks — Maybank, CIMB, and RHB — have emerged as substantial shareholders in Vantris Energy Bhd . The development follows the issuance of new shares and securities under a debt restructuring scheme involving Sapura TMC Sdn Bhd , a wholly owned subsidiary of Vantris Energy. Maybank: Largest Stakeholder at Over 20% New allotment: 462.45 million new ordinary shares and 498.48 million RCUIDS (redeemable convertible unsecured Islamic debt securities). Direct holding: 421.67 million shares ( 18.48% ). Indirect holding: 40.78 million shares ( 1.79% ). Combined stake: 20.27% , making Maybank the largest substantial shareholder under Section 136 of the Companies Act. RHB: Indirect Stake via Islamic Arm New allotment: 164.56 million shares at RM0.80 each + 177.39 million RCUIDS. Holding entity: RHB Islamic Bank Bhd. Effective stake: 7.21% in Vantris Energy...

U.S. Stock Rally Pauses as October Volatility, Earnings Season Loom

Market Resilience Meets Fresh Caution U.S. equities have staged one of their strongest rallies since the 1950s, adding nearly US$15 trillion in market value since April . The S&P 500 has surged 33% , notched 28 record highs in 2025 , and is on track for its best September in more than a decade. But momentum is showing early signs of fatigue. The benchmark slipped for three straight sessions last week — its longest losing streak in a month — before eking out a rebound Friday. Since the Fed’s rate cut on Sept. 17, the S&P 500 is up less than 1%, with weakness spreading beyond Big Tech to consumer, healthcare, and materials stocks. Tariffs, Data, and the Fed in Focus President Donald Trump’s new tariffs on imported trucks, drugs, and furniture add another layer of uncertainty just as Q3 earnings season begins Oct. 14 with JPMorgan Chase. Markets are already pricing in 8% earnings growth for the quarter — levels seen only twice i...

Asian Shares Cautious as U.S. Shutdown Risk Looms

U.S. Budget Standoff Adds to Market Jitters Asian markets opened cautiously on Monday as investors weighed the risk of a potential U.S. government shutdown . Without a funding deal, federal agencies could close from Wednesday — the same day new tariffs on heavy trucks, pharmaceuticals, and furnishings take effect. President Donald Trump is set to meet Congressional leaders later today to discuss extending funding. A prolonged shutdown could delay the release of key economic data, including September’s payrolls report, leaving the Federal Reserve (Fed) with limited visibility ahead of its October 29 meeting. Implications for Fed Policy Bank of America analysts noted that if the shutdown drags on, the Fed may need to rely on private data sources when setting policy. While the immediate economic hit is estimated at only 0.1 percentage point of GDP per week , longer disruptions or permanent federal layoffs could dent consumer confidence ...

Chip Stocks Rally on Trump’s Plan to Tie U.S. Output to Imports

GlobalFoundries and Intel Lead Gains U.S. chipmakers surged Friday after reports that the Trump administration is preparing a new policy to force domestic production to match imports . GlobalFoundries (GFS): +8.4% Intel (INTC): +4.4% Both companies have significant U.S. manufacturing capacity, positioning them to benefit from the proposed rules. The Proposal: A 1:1 Ratio for Chips According to the Wall Street Journal , the administration wants U.S. semiconductor firms to produce the same number of chips domestically as customers import from abroad . Companies unable to match imports with U.S. output would face tariffs . The policy is seen as an extension of Trump’s earlier plan to impose 100% tariffs on foreign-made chips, with exemptions for firms building in the U.S. Firms would have a grace period to meet quotas while new fabs ramp up. National Security at the Core The White House argues the U.S. must reduce reliance on foreign su...

Asian Markets Cautious as US Government Shutdown Risk Looms

Shutdown Deadline Approaches Asian shares opened cautiously on Monday as investors weighed the risk of a potential U.S. government shutdown . Without a funding deal, the shutdown could begin Wednesday , coinciding with the rollout of new U.S. tariffs on heavy trucks, pharmaceuticals, and other products . President Donald Trump is set to meet congressional leaders later Monday in an effort to secure an extension. Analysts warn that a prolonged closure would delay critical economic data releases — including the September payrolls report — leaving the Federal Reserve (Fed) with less visibility ahead of its Oct 29 meeting . Fed Implications Bank of America (BofA) analysts noted that if the shutdown extends beyond October, the Fed would have to rely more on private-sector data. Markets currently price in a 90% chance of a Fed rate cut in October and a 65% probability of another in December . Economic growth impact is est...

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