KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
Key Takeaway
The Straits Times Index (STI) climbed to an all-time peak of 4,301.63 on Sept 4, extending its YTD gain to +13.5%. Dovish global monetary expectations and supportive domestic policies are fueling momentum, with banks, telecoms, and S-REITs leading the charge.
Market Drivers
Global Tailwinds: Fed & ECB rate cut expectations driving flows into rate-sensitive assets.
Policy Support: MAS’s S$5B Securities Market Development Plan boosting liquidity and investor confidence.
Sector Rotation: Banks and REITs benefiting from narrowing yield spreads.
Market Leaders (Last 20 Trading Days)
Singtel (Z74.SG): +9.5%, supported by yield appeal and FCF strength.
YZJ Shipbuilding (BS6.SG): +8.1%, on stronger order flows.
Jardine C&C (C07.SG): +7.6%, on rising consumer confidence.
Banks (DBS, OCBC, UOB): Contributed 0.6–1.4% each to STI’s latest 5-day rise as net interest margin outlook improves.
Telecoms (Singtel, StarHub): Defensive yields attracting inflows.
Sector Upgrades & Outlook
Banks: Net interest margins stabilizing; expected recovery into FY25–26.
S-REITs: Benefiting from lower bond yields; resilient cash flows and diversified portfolios.
Telecommunications: Strong FCF, dividend support in uncertain environment.
Small & Mid-Caps: Select plays (BRC Asia, CAO, CSE Global, Food Empire, Frencken, LHN, UMS) offering earnings growth + dividends.
Property & Construction: Land bank monetization and infrastructure pipeline driving upside.
Valuation Snapshot
Forward P/E: 14.8x (below historical mean of 16.7x).
Dividend Yield: 4.2% (among most attractive in Asia).
ROE: 12.3%.
Net Debt: Declining from 25.2% → 17.5% (ex-banks) over next 2 years.
Earnings Outlook
FY2025 Core Profit Growth: +4.6%.
FY2026 Forecast: Accelerates to +7.2% as headwinds ease.
Earnings Misses: Concentrated in trading revenues, lower NIMs earlier in year.
Guidance: Managements largely reaffirm full-year outlook.
Investor Watch
Overweight: Banks, Telecoms, S-REITs.
Alpha Ideas: Select small/mid-caps with niche leadership.
Macro Lens: Singapore equities remain undervalued vs history; supportive policy and dovish global backdrop could extend rally into year-end.
Risk: External shocks (tariffs, global slowdown) but strong domestic liquidity buffers downside.
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