KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
Shares Hit New All-Time Low
Bermaz Auto Bhd (KL:BAUTO) slid to a record low on Friday after reporting quarterly earnings that badly missed expectations, triggering a wave of analyst downgrades.
The stock fell as much as 9% to 61.5 sen before paring slightly to 62.5 sen at 10am, with nearly 10 million shares traded. Year to date, Bermaz has lost around 60% of its market value, wiping out over RM1 billion in capitalisation.
Quarterly Earnings Shock
Net profit in the most recent quarter came in at just 5% of consensus full-year forecasts, forcing analysts to sharply revise down estimates. The poor showing prompted two more research houses to cut their recommendations to “sell,” bringing the tally to eight sell calls, six hold, and only two buys.
Public Investment Bank noted that Malaysia’s non-national passenger vehicle segment is under pressure from weaker consumer confidence, higher costs due to fuel subsidy rationalisation, and inflationary headwinds.
Competitive Pressure from Chinese EVs
The company, best known for assembling Mazda vehicles, is also struggling against rising competition from Chinese electric vehicle (EV) makers, whose models are aggressively priced and feature-rich.
While Bermaz has partnered with Xpeng and Deepal to diversify its portfolio, analysts say sales volumes remain too small to offset the decline in Mazda and Kia units. Current EV incentives, which expire on Dec 31, 2025, add further uncertainty.
Analysts Turn Bearish
Apex Securities, in its downgrade, said that while XPeng has shown some early traction, its contribution is still “insufficient to meaningfully offset the erosion in Mazda and Kia sales domestically.”
Hong Leong Investment Bank highlighted another risk: many of Bermaz’s core Mazda models are at the end of their product cycles, with replacements only expected in about two years. This means near-term earnings momentum is likely to remain weak.
Market Outlook
The average 12-month target price has now been slashed to just 60 sen, reflecting continued pessimism about Bermaz’s prospects. Unless new models or fresh incentives revive demand, the stock faces the prospect of further pressure in a highly competitive and cost-sensitive market.
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