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Market Daily Report: Bursa Malaysia Rises On Buying Interest In Banking, Telco Stocks

KUALA LUMPUR, Sept 7 (Bernama) -- Bursa Malaysia traded higher on Monday, supported by renewed buying interest in selected banking and telecommunications heavyweights, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 6.69 points, or 0.39 per cent, to 1,714.79, compared with Friday’s close of 1,708.10. The benchmark index opened 1.60 points higher at 1,709.70 and fluctuated between 1,708.26 and 1,715.29 throughout the trading session. The broader market, however, was negative with losers outpacing gainers 611 to 488, while 580 counters were unchanged, 1,109 untraded and 25 suspended. Turnover declined to 3.60 billion units valued at RM2.45 billion from 4.33 billion units valued at RM2.98 billion on Friday. 

REIT Tax Relief Likely to Stay: Kenanga Sees Full Renewal of 10% Withholding Tax

Malaysia’s real estate investment trust (REIT) sector may  avoid a tax shock , with  Kenanga Investment Bank  expecting the  10% withholding tax on REIT dividends to be fully renewed , despite the concession expiring at end-2025. Why Renewal Looks Likely Kenanga believes the government has  little incentive to change the current structure , given the limited fiscal benefit. Annual REIT net earnings:  ~ RM2.8bn Contribution to  2026 estimated tax revenue:   <0.2% Any policy shift would offer  immaterial fiscal upside , but  meaningful downside  to the sector Key point:   The cost to REIT valuations outweighs the tax gain to the government. What’s at Stake for Investors The concessionary  10% withholding tax , in place since 2016 and renewed annually, has been a key pillar supporting REIT yields. Investors already face an  additional 2% dividend tax  on income above  RM100,000 Effective dividend tax for lar...