MARKET PULSE PM MAY 2, 2025 [WATCH]
KUALA LUMPUR: News on the latest moves on the stock and crypto markets.
Bursa Malaysia closed on a positive note Friday, buoyed by the return of foreign investors and continued upward momentum, with key counters such as Sunway and IHH Healthcare lifting the index.
The benchmark index edged up by two points to settle at the 1,542 level.
Reach Ten remained the most actively traded stock, ending at 54 sen, up from its opening of 52 sen, with 133 million shares traded.
Meanwhile, the ringgit strengthened against the US dollar, ending the day at 4.2700.
In the cryptocurrency space, Bitcoin traded at RM416,434, while Ethereum dipped to RM7,852.
That's it for Market Pulse.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Stable yields to support performance of REITs
Maybank IB Research remained positive on REITs. PETALING JAYA: The outlook for Malaysian real estate investment trusts (REITs) is becoming more challenging even as yields remain stable amid rising unit prices, analysts say. This is also despite the KL REIT Index gaining 0.9% against Bursa Malaysia's benchmark FBM KLCI's 8.2% loss over the five months to May. Analysts said that the expanded Sales and Service Tax (SST), which will come into effect on July 1, would have an impact on REITs as it would require them to them to impose an 8% service tax (unless specific lessee exemption criteria are met), raising operating costs for tenants. Revisions to Malaysia's SST include targeted increases for non-essential goods and an expansion of the services tax to six new categories: leasing or rental services, construction, financial services, private healthcare, education, and beauty services. While the aim of revising the SST is to broaden the tax base with minimal impact on the majority of Malaysian consumers, specific business sectors, particularly REITs and financial services, are expected to bear a more direct and potentially adverse impact, analysts said. CGS International Research said while REITs with prime assets would remain resilient due to strong tenant profiles and footfall, weaker properties may face tenant attrition. 'In this regard, REITs with lower-quality portfolios may be compelled to provide rental support, which could weigh on earnings and distributions,' the research house said. Maybank Investment Bank Research (Maybank IB Research) remained positive on REITs, with its top pick being Sunway-REIT. The research house said retail and industrial REITs remained resilient, but office REITs face challenges despite long leases and stable occupancy. It added that domestic REITs offer attractive average dividend yields of between 5.6% and 6.1% or a healthy spread of between 208 and 258 basis points against the 3.5% for current 10-year Malaysian Government Securities (MGS). 'We see room for spread compression should Bank Negara initiate an overnight policy rate cut in the second half of this year that would benefit REITs with higher floating-rate debt exposure,' Maybank IB Research said, adding that this would support valuation upside and lower financing costs for growth-oriented REITs. It noted that the managements of various REITs maintained a cautiously optimistic outlook but flagged a few concerns such as the potential 8% service tax that could limit their ability to raise rents, as well as the potential increase in electricity tariffs and broader economic uncertainty such as subsidy rationalisation for RON95 petrol and international trade tensions. MIDF Research, which downgraded REITs to 'neutral' from 'positive', said most of the positives have been priced in. 'Going forward, we expect REITs to continue registering earnings growth. However, we expect moderate earnings growth going forward from a normalised base in 2024. 'Besides, the yields of REITs under our coverage tapered to 4.6% following the increase in unit prices of REITs recently,' the research house said. It expects its top pick, Pavilion-REIT, with an unchanged target price of RM1.69, to see its earnings supported by a rental revision for Pavilion KL Mall, while Pavilion Bukit Jalil's performance remains stable. MIDF Research said that the KL REIT Index was resilient in the first five months of the year following a gain of 11.4% last year in comparison to the KLCI, as investors flocked to defensive investments. However, the research house said the increase in unit prices have also narrowed the yield spread versus 10-year MGS, which makes them less attractive to investors.
The Star
2 hours ago
- The Star
Global issues cloud 2H25 IPO outlook
PETALING JAYA: The initial public offering (IPO) market, which started the year on a subdued note, faces an uncertain second half (2H25) as weak market sentiment, global headwinds and poor earnings season continue to dampen investor appetite. A market watcher says the outlook for IPOs in 2H25 hinges on several unresolved global issues – including the outcome of potential US reciprocal trade tariffs expected in July, US-China trade tensions and the timing of a US interest rate cut, if any. 'The market sentiment isn't good. Last year, about 80% to 85% of IPOs performed well post-listing. 'This year, it's the complete opposite – nearly 80% have traded below their offer prices,' Tradeview Capital chief executive officer and founder Ng Zhu Hann told StarBiz. 'So, what changed? Largely, to me, it is – of course – market fatigue, fund flows, and also because the global situation has made a lot of investors, whether local, institutional, foreign funds or even local retail investors, very risk-averse. 'A lot of people are holding on to their cash rather than participating in the equity market.' Domestically, Ng said a lacklustre corporate earnings season has added to investor caution. To-date, 28 companies have been listed on Bursa Malaysia this year, with Paradigm Real Estate Investment Trust making its debut yesterday. Another three are expected to list by end-June – Ping Edge Technology Bhd (June 13), Cuckoo International (M) Bhd (June 24) and Pan Merchant Bhd (June 26) – bringing the first-half total to 31 IPOs. This puts Bursa Malaysia slightly past the halfway mark of its full-year target of 60 IPOs, but Ng warned that delays and repricings suggest growing caution among potential debutants. 'We've already seen two or three companies pushing back their listings,' said Ng. 'Several IPOs also revised their offer prices downward.' Cuckoo, which was initially scheduled to list on April 30, deferred its debut to June 24 due to 'near-term market challenges'. Its IPO price was also reported to have been revised to RM1.10 per share from RM1.29 previously, although this has yet to be confirmed by the company. Eco-Shop Marketing Bhd, which has since listed, similarly trimmed its IPO price to RM1.13 from RM1.21 before going public. Whether Bursa Malaysia hits its target of 60 listings this year now depends not just on pipeline readiness – but on whether the broader market gives debutants a reason to come forward. Across the shore, Singapore is taking a markedly different approach to reinvigorate its equity market. In February, the Monetary Authority of Singapore or MAS rolled out a bold S$5bil Equity Market Development Programme to boost liquidity on the Singapore Exchange by investing through selected fund managers focused on actively managed strategies targeting local small and mid-cap stocks. This is complemented by tax exemptions on fund manager income 'derived from funds investing substantially in Singapore-listed equities', a narrowed Global Investor Programme to channel more capital into listed equities, and expanded research grants to improve coverage and investor engagement in the equity market.
Free Malaysia Today
10 hours ago
- Free Malaysia Today
EPF clarifies it bought 0.07% in 99 Speed Mart, and not 5%
The EPF now has a 5.02% stake in 99 Speed Mart, making it a substantial shareholder. (99 Speedmart pic) PETALING JAYA : The Employees Provident Fund (EPF) clarified it only bought a 0.07% stake in 99 Speed Mart Retail Holdings Bhd in its latest acquisition last week. In a rather embarrassing development, EPF issued an 'amended announcement' in a filing with Bursa Malaysia today stating it bought six million shares in the minimart chain operator on June 4. In its bourse filing yesterday, the provident fund announced it acquired 421.79 million shares, or a 5.02% stake, on June 4. Today's filing implies that EPF had previously accumulated a total of 4.95% equity interest in the country's largest operator of grocery stores. The acquisitions were made through Citigroup Nominees (Tempatan) Sdn Bhd. The latest purchase of 0.07% upped its stake to 5.02%, beyond the 5% threshold, thus making EPF a substantial shareholder. 99 Speed Mart's single largest shareholder is its founder and CEO Lee Thiam Wah, who controls 79.68% equity interest in the company. The group was granted a waiver from the Securities Commission Malaysia from having to meet the minimum 25% public spread requirement for its listing exercise. 99 Speed Mart ended the day up 9 sen or 4.3% at RM2.19, valuing it at RM18.4 billion. Its shares have dropped 11% year to date. Despite that, the stock has jumped almost 33% since the company was listed last September at an IPO price of RM1.65. The listing was Malaysia's largest in seven years and catapulted the wheelchair-bound Lee to billionaire status. Forbes ranks him at No 8 in its Malaysia's 50 Richest list, with a net worth of US$4.1 billion (RM17.37 billion). Lee, 61, who contracted polio as an infant, started his entrepreneurial journey by selling snacks by the roadside as a teenager. 99 Speed Mart kicked off its first quarter ended March 31 (Q1 FY2025) with a robust 7.5% rise in net profit to RM143.18 million despite rising uncertainty in the Malaysian economy. Its revenue grew at a similar pace, rising 7.7% to RM2.61 billion from RM2.43 billion in Q1 FY2024, driven by stronger retail sales and network expansion.
