MRCB hits 8-month high on heavy buying, gains nearly 11pct
The stock climbed 10.89 per cent, or 5.5 sen, to end the day at 56 sen, as a wave of late-morning and post-lunch buying sent trading volumes surging.
Opening slightly firmer at 51 sen, up half a sen from the previous close of 50.5 sen, MRCB traded quietly for much of the morning until buying interest picked up just before 11am.
Heavy buying interest pushed the stock from 51.5 sen to 54.5 sen by the midday break, a three sen rise or 5.94 per cent gain in under two hours.
But it was after trading resumed at 2.30pm that the rally kicked into high gear. MRCB jumped five sen to 55.5 sen almost instantly, as volume surged to a session-high of 5.49 million shares.
Within the next 20 minutes, the government-linked stock climbed to an intraday peak of 56.5 sen, up six sen or 11.88 per cent.
By market close, turnover reached 45.5 million shares, marking the counter's busiest trading day in more than 10 months, despite no fresh news from the company.
MRCB's most recent headline was nearly two months ago when it secured a RM2.94 billion contract to redevelop Kompleks Sukan Shah Alam, one of the largest infrastructure awards of the year.
The group's largest shareholder is the Employees Provident Fund, which holds a 36.21 per cent stake, followed by Gapurna Sdn Bhd with a 15.48 per cent equity interest.
Gapurna is controlled by Tan Sri Mohamad Salim Fateh Din who also serves as MRCB's executive vice chairman. His son Datuk Imran Salim is MRCB group managing director.
Other institutional investors with meaningful stakes include Lembaga Tabung Haji, which holds 5.35 per cent and Kumpulan Wang Persaraan with 3.85 per cent.
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The Star
6 hours ago
- The Star
Upside to EPF's investment returns
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The provident fund announced yesterday that it posted a 3% year-on-year (y-o-y) gain in its total investment income for 1H25 to RM38.92bil, from RM37.9bil previously. The total investment income includes RM0.44bil mark-to-market gains on securities that have not been realised, mainly due to foreign exchange rate fluctuations. These gains, in line with EPF's policy, will not be distributable as dividends. For 2Q25, EPF's total investment income rose by 22% y-o-y to RM20.61bil from RM16.91bil in 2Q24. This was also an improvement from 1Q25, in which EPF saw a 13% y-o-y drop in its investment income to RM18.31bil. Volatility in global markets on renewed trade frictions and policy uncertainty were cited as reasons for the decline then. EPF chief executive officer Ahmad Zulqarnain Onn attributed the stronger 1H25 performance to 'steady market recovery, strong domestic contributions, and a disciplined portfolio management approach'. Nevertheless, Ahmad Zulqarnain said the EPF remains 'vigilant of downside risks, including softening global trade, unpredictable trade policies, renewed inflationary pressures and shifting geopolitics', notwithstanding a better 2Q25. Tradeview Capital chief executive officer Ng Zhu Hann said the possibility of a rate cut in September by the Fed is a key macroeconomic factor to watch for, as to whether EPF can maintain its 2Q25 investment income momentum. 'Domestically, corporate Malaysia's 3Q earnings will be a key indicator for EPF's investment income prospects. 'We need to see if corporates' earnings can sustain dividend payouts, as EPF holds stakes in many large locally-listed firms. 'However, factors such as the sales and service tax expansion and weaker consumer and investment confidence may weigh on results,' he said. US inflation figures in July accelerated slightly less than expected and this supercharged expectations of a September rate cut by the Fed. 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'Thus far, the gross investment has increased by 3% y-o-y in 1H25 and looking at the global equities market, it appears that 3Q25 is expected to record a respectable performance,' he said. Afzanizam is of the view that the better performance recorded by EPF in 2Q25 just goes to show that global market sentiments are systemic and it is affecting the institutional investors globally including EPF. 'Hence, strict adherence to their strategic asset allocation and at the same time remaining nimble in their investment strategy would allow them to succeed in such a volatile market,' he said. Further, Universiti Tunku Abdul Rahman economics professor Wong Chin Yoong said EPF's investment income performance is 'very likely to look good in the coming quarters'. This, he added, is underpinned by the performance seen in major indices like Nasdaq and S&P 500, which have hit new record highs entering into 3Q – mainly led by the artificial intelligence bonanza and the expectations of a September rate cut by the Fed. In 2Q25, equities remained the largest contributor to investment income, generating RM13.77bil, a 35% y–o-y increase, compared to RM10.23bil in 2Q24. 'The strong recovery in the global equity markets during the quarter provided opportunities for EPF fund managers to capitalise on the gains and contributed to the income growth. 'Equities accounted for 67% of the total investment income for the quarter,' EPF said in a statement. On the other hand, fixed income continued its role in capital preservation, generating RM6.73bil or 33% of the total investment income for the quarter. 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During 2Q25, international investments generated RM12.92bil or 63% of the total investment income. EPF registered 286,194 new members in 1H25, raising total membership to 16.4 million. Of these, 8.98 million are active members, representing 51.5% of the 17.43 million labour force as of June 2025. The EPF's active-to-inactive member ratio remained stable at 55:45 in 1H25. New employer registrations reached 37,402, increasing total active employers registered with the EPF to 619,662 as at June 2025. On a quarterly basis, total contributions increased by 13.8% to RM31.21bil, from RM27.42bil in 2Q24. Voluntary contributions increased by 55% to RM11.68bil in 1H25, from RM7.55bil a year earlier. For the first six months, the number of formal sector members contributing above the statutory rate was 34,442, compared to 19,591 in the same period last year. 'In the months ahead, the EPF will step up engagement with employers and key stakeholders to ensure smooth implementation of mandatory contributions for non-Malaysian citizen employees. 'This policy represents a significant move towards strengthening social protection and promoting greater equity in the labour market,' it said. The EPF also reaffirms that the proposed retirement savings account restructuring, as announced under the 13th Malaysia Plan, is intended to help members' savings last longer in retirement through a steady income stream, with no change to existing withdrawal rights and a voluntary opt-in for current members.
The Star
14 hours ago
- The Star
Higher 1H25 EPF income can mean bigger 2025 dividend
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Borneo Post
16 hours ago
- Borneo Post
EPF's 1H 2025 income rises 3 pct to RM38.92 bln, assets hit RM1.31 trillion
In line with the EPF's policy, this gain will not be distributable as dividends, EPF said in a statement today. – Bernama photo KUALA LUMPUR (Aug 14): The Employees Provident Fund (EPF) recorded a total investment income of RM38.92 billion for the first six months ended June 30, 2025 (1H 2025), a three per cent increase from RM37.90 billion in the corresponding period in 2024. The total investment income included a RM0.44 billion mark-to-market gain on securities that have not been realised, mainly due to foreign exchange rate fluctuations. In line with the EPF's policy, this gain will not be distributable as dividends, EPF said in a statement today. EPF's total investment income for the second quarter (Q2 2025) was RM20.61 billion, a 22 per cent increase from RM16.91 billion in the same quarter last year. EPF chief executive officer Ahmad Zulqarnain Onn said 'the EPF's long-term diversified investment approach continues to deliver resilient outcomes, with its first-half income recording an increase supported by steady market recovery, strong domestic contributions, and a disciplined portfolio management approach.' 'The increase in contributions and income led to a five per cent increase in our assets under management. Our emphasis on high-quality assets, particularly in key domestic sectors, alongside disciplined asset allocation and ESG-integrated strategies, enabled us to capture opportunities while managing risks amid ongoing global uncertainty,' he said in a statement. He said notwithstanding an improved second quarter, the EPF remains vigilant of downside risks, including softening global trade, unpredictable trade policies, renewed inflationary pressures and shifting geopolitics. 'Our strategy will be focusing on our long-term resilience to safeguard our members' retirement savings against these external headwinds,' Ahmad Zulqarnain said. Meanwhile, during the quarter under review, equities remained the largest contributor to investment income, generating RM13.77 billion, a 35 per cent increase against RM10.23 billion in 2Q 2024. The strong recovery in the global equity markets during the quarter provided opportunities for EPF fund managers to capitalise on the gains and contributed to the income growth. Equities accounted for 67 per cent of the total investment income for the quarter. Fixed Income continued its role in capital preservation, generating RM6.73 billion, or 33 per cent, of the total investment income for the quarter. This asset class, which comprises Malaysian government securities and equivalents, as well as loans and bonds, continued to provide stable returns and helped cushion the impact of volatility in the equity markets. Real estate and infrastructure recorded an income of RM0.29 billion in 2Q 2025. 'Given the EPF's long-term investment horizon in this asset class, currency movements have minimal impact on actual returns over time. Similarly, money market instruments, which are also largely denominated in non-ringgit currencies, were affected by the ringgit's appreciation against the US dollar in 2Q 2025, resulting in a RM0.18 billion loss after foreign exchange translation,' said EPF. Of the total investment income for 2Q 2025, RM17.39 billion was generated for conventional savings and RM3.22 billion for shariah savings. As of June 30, 2025, total investment assets stood at RM1.31 trillion, representing an eight per cent year-on-year growth. International investments accounted for 39 per cent, with the increase partly reflecting improved valuations in global equity markets. During 2Q 2025, international investments generated RM12.92 billion, or 63 per cent of the total investment income. In line with its commitment to nation-building, the EPF maintained a strong domestic investment focus, channelling investments towards sectors critical to Malaysia's long-term growth under the Ekonomi MADANI agenda. Through the Ministry of Finance (MOF)-led GEAR-uP initiative, the EPF is focused on healthcare, aged care and infrastructure, it said. Meanwhile, it said Malaysia's 'labour market is expected to continue to remain resilient in the next quarters, supported by sound government policies, macroeconomic stability, and investments in human capital.' The unemployment rate declined by 0.3 percentage points to 3.0 per cent in June 2025 compared with a year earlier, according to the Statistics Department. 'During 1H 2025, the EPF registered 286,194 new members, raising total membership to 16.4 million,' it said. Of these, 8.98 million are active members, representing 51.5 per cent of the 17.43 million labour force as of June 2025. The EPF's active-to-inactive member ratio remained stable at 55:45 in 1H 2025. New employer registrations reached 37,402, increasing total active employers registered with the EPF to 619,662 as of June 2025. On a quarterly basis, total contributions increased by 13.8 per cent to RM31.21 billion, from RM27.42 billion in 2Q 2024. Voluntary contributions increased by 55 per cent to RM11.68 billion in 1H 2025, from RM7.55 billion a year earlier. For the first six months, it noted that the number of formal sector members contributing above the statutory rate was 34,442, compared to 19,591 in the same period last year. 'In the months ahead, the EPF will step up engagement with employers and key stakeholders to ensure smooth implementation of mandatory contributions for non-Malaysian citizen employees. 'This policy represents a significant move towards strengthening social protection and promoting greater equity in the labour market,' it said. The EPF said it remains committed to supporting a seamless transition and full compliance as the expanded coverage takes effect with October 2025 wages, for the contribution month of November 2025. The EPF also reaffirms that the proposed retirement savings account restructuring, as announced under the 13th Malaysia Plan, is intended to help members' savings last longer in retirement through a steady income stream, with no change to existing withdrawal rights and a voluntary opt‑in for current members. – Bernama
