KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Shares of Synergy House Bhd slid sharply on Thursday after the furniture exporter posted a 75% collapse in quarterly earnings, underscoring the deepening impact of US tariffs on Malaysian furniture makers.
The results came in well below expectations, according to Tradeview Research, the only research house covering the counter. The firm noted that order recovery — especially in the B2B segment — has been significantly slower than anticipated, while tariff pressures have lasted longer than initially projected.
Stock Hits Three-Month Low
Synergy House fell as much as 12% to 33.5 sen, the lowest level in three months, before stabilising at 34 sen. Trading volume exceeded 1.1 million shares, valuing the company at RM170 million at the last traded price.
Tariffs to Keep Squeezing Margins
Tradeview cautioned that even though festive demand may help lift the coming quarter, the near-term outlook remains challenging.
Key pressure points highlighted by Tradeview:
US tariffs continue to erode profitability
Potential need to absorb part of the tariff costs, further squeezing margins
B2B orders remain slow to recover
Tradeview has cut its earnings projections sharply and now expects FY2025 net profit to plunge 59% to RM11.3 million.
Hold Rating Maintained on Longer-Term Upside
Despite the significant near-term headwinds, Tradeview maintained a Hold call.
The rationale:
Potential pricing advantage over Chinese competitors in 2026–2027
Ongoing shift toward premium, higher-margin products
Cost efficiency measures, including increased automation
Broader product portfolio aimed at improving customer engagement
These factors could position the company for recovery once tariff conditions stabilise.
Key Takeaways for Investors
Short-term pain continues — tariffs remain the biggest drag.
Margins likely to stay under pressure as the company may absorb part of the tariff cost.
Tradeview sees recovery only beyond 2025, driven by pricing and product mix improvements.
Hold rating suggests limited immediate upside but potential longer-term value once conditions normalise.
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