KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Hong Leong Investment Bank (HLIB) has reduced its target price (TP) for Notion VTec Bhd to RM2.74 from RM3.28, despite the company reporting a decent earnings performance for the third quarter ended June 30, 2024 (3QFY2024). The downgrade is mainly attributed to the anticipated negative impact of a stronger ringgit against the US dollar on Notion VTec's future earnings. Key Points: Target Price Adjustment: HLIB maintains a 'buy' recommendation for Notion VTec but has lowered the price-earnings ratio valuation from 30 times to 25 times, reflecting concerns over subdued sentiment surrounding export-oriented companies due to the stronger ringgit. Notion VTec’s stock has already plunged 57% from its recent peak. Foreign Currency Exposure: The company has significant exposure to foreign currency risks, with 50% of its receivables in US dollars and 20% in euros. Approximately 90% of its sales are in these currencies. The appreciation of the ringgit is expected to result in foreig...