KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Apex Securities Initiates ‘Buy’ on Malaysia Smelting Corp, Citing Earnings Rebound from Rising Tin Prices
Key Takeaway: Malaysia Smelting Corporation Bhd (KL:MSC) is expected to stage a strong earnings rebound in 2026 on the back of rising tin prices and improving smelter operations, according to Apex Securities, which has initiated coverage with a “buy” call.
Earnings Outlook
Apex Securities forecasts that net profit will moderate in 2025 due to lower feedstock availability and downtime at MSC’s Pulau Indah smelter. However, once production normalises, earnings are projected to jump by 50% in 2026. The research house expects output to stabilise and gradually improve by 2027, supported by higher plant utilisation and better input supply.
Analyst Coverage and Valuation
Apex Securities initiated coverage with a “buy” rating and a target price of RM1.51. UOB Kay Hian is the only other research house covering the stock, also with a “buy” call but at a slightly lower target price of RM1.37.
Shares of MSC have already gained 17% year-to-date, buoyed by strong tin prices. The company, one of the world’s largest producers of tin metal and tin-based products, has the capacity to refine up to 60,000 tonnes of tin annually from ores sourced in Perak and Pahang.
Tin Market Dynamics
Tin prices surged to a three-year high in March 2025, driven by supply disruptions in Indonesia and Myanmar. A gas pipeline explosion in April further constrained production at MSC, which accounts for roughly 25% of global refined tin supply, keeping prices elevated.
While prices have since eased to about US$34,262 per tonne, they remain significantly above the pre-pandemic 10-year average of US$20,000–22,000.
Structural Drivers
Apex Securities expects the uptrend in tin prices to persist, supported by:
Supply constraints from Myanmar’s export ban and mining curbs in Indonesia and Africa
Declining ore grades globally
Robust demand from the electric vehicle sector, increased electronics consumption, and the push for ESG-aligned initiatives
As one of the few London Metal Exchange-certified smelters with partial upstream integration, MSC is well-positioned to benefit from tighter spreads, elevated smelting premiums, and sustained price strength.
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