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Market Daily Report: Bursa Malaysia Ends Nearly Flat As Construction Stocks Attract Buying

 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.

Malaysia’s Insurance and Takaful Sector Holds Steady Despite Rising Costs

  Stable Outlook Backed by Strong Capital Buffers RAM Ratings has reaffirmed its  stable outlook  on Malaysia’s insurance and takaful industry, citing robust capital positions that provide resilience against market volatility. While persistent medical cost inflation and competitive pricing pressures weigh on earnings, the sector’s solid buffers are expected to help players withstand external uncertainties. “Growth in life/family takaful and non-life segments will likely slow in 2025 amid affordability concerns and lingering cost-of-living pressures. Still, capital buffers are sufficient to absorb potential shocks,” said  Sophia Lee , Senior Vice President of Financial Institution Ratings at RAM. Longer-term fundamentals are expected to strengthen as  Bank Negara Malaysia’s risk-based capital reforms , slated for 2027 or later, enhance system resilience. Several insurers have already begun managing capital needs ahead of the reforms. Growth Moderation Across Life...

Malaysia's Takaful Sector Poised for Stronger Growth in 2025 Amid Reforms and Economic Stability

  Key Takeaways: Stronger Sector Outlook:  Fitch Ratings expects  Malaysia’s takaful sector  to maintain strong growth in 2025, backed by  regulatory reforms, digitalisation , rising  public awareness , and  macroeconomic stability . Upcoming Regulatory Enhancements: RBC2 Framework  (effective Jan 2027) will align capital standards with global norms, including new  catastrophe risk charges  and revised  reserve requirements . Hajah and Darurah Policy  (implemented Jan 2025) now clarifies when conventional reinsurance can be used in takaful, especially under fund-threatening scenarios. Refined digital insurer entry rules  (from Mar 2025) to ensure early-stage viability and drive innovation. Medical Takaful in Focus: Rising health claim costs  due to medical inflation have prompted  gradual repricing  and the introduction of  co-payment rules  since Sept 2024 to manage affordability. Profitability an...

Brokers Report: Syarikat Takaful - Operating Efficiency To Drive Growth

Reaffirm BUY with an unchanged target price (TP) of RM4.84 INVESTMENT HIGHLIGHTS Syarikat Takaful Malaysia Bhd (STMB)’s 1QFY17 PAZTAMI of RM56.8m (+23%yoy) was within ours and consensus expectations Family Takaful continued to support the growth in 1QFY17 earnings As the result is within our estimates, we make no changes to our existing forecast numbers Hence we reiterate our  BUY  recommendation with an unchanged  TP  of  RM4.84  per share 1QFY17 PAZTAMI met expectations.  Despite challenging macroeconomic condition, STMB has continued to deliver solid PAZTAMI performance in 1QFY17, where it grew +23.0%yoy to RM56.8m. The increase was as a result of higher Wakalah fee income of RM186.3m (+13.0%yoy) to the Group and its portfolio rebalancing strategy to reduce exposure in risky assets. Overall, the reported earnings came in line with ours (at 29.1%) and consensus’ (at 29.5%) expectations. Strong 1QFY17 earnings growth in t...