Analysts have revised their earnings forecasts for Malaysian stocks and trimmed the year-end target for the benchmark FBM KLCI following mixed results across sectors in the July-September quarter (3Q2024).

In a note, UOB Kay Hian has trimmed earnings forecasts for the FBM KLCI by 0.8% for 2024 and 1.7% for 2025, driven by downgrades in the plantation and consumer sectors and weakness in the oil and gas shipping segment.

Analysts revise KLCI growth forecast after mixed 3Q, cut year-end target

CGS International views the recent lacklustre market performance as an excellent buying opportunity, as it sees potential price-earnings (P/E) expansion going into 2025.

CGS sees market dip as prime buying opportunity, predicts P/E growth by 2025

Donald Trump's recent US election win will affect Malaysian exporters, but is largely neutral for domestic growth, the ringgit, and the equity market, said CGS International.

Trump presidency largely neutral for Malaysia, while market consolidation offers buying opportunities — CGS

Increased market volatility is expected in the near term due to the US presidential election, but the Federal Reserve's (Fed) decision following the Federal Open Market Committee meeting this Wednesday and Thursday is likely to have a more significant impact, said MIDF Research.

Market volatility looms with US election, but Fed decision's impact more significant — MIDF

Maybank Investment Bank has warned Asean investors of potential economic turbulence and a surge in trade tensions, amid anticipation of more import tariff hikes if Donald Trump wins a second term as the US president.

Maybank IB tells clients to go defensive, warns of potential economic risks brought by new US president

(Oct 31): Amazon's push to offer more everyday essentials like toothpaste is hurting its average selling prices (ASPs), but it is also a guard against rivals such as Temu and Shein, who offer rock bottom prices on goods they ship from China.

Amazon’s plan to tackle Temu, Shein? Sell more toothpaste

Malaysia’s consumer and construction stocks are set to benefit, as the government seeks to boost wages and sustain economic growth with its spending plan for next year. 

Prime Minister Datuk Seri Anwar Ibrahim, who doubles as the finance minister, will likely deliver measures to lower the cost of living and several infrastructure projects when he unveils the country’s budget on Friday. Analysts also expect details of plans to remove blanket fuel subsidies and potentially new levies, including a sugar-sweetened beverage tax, to fund an expansionary budget after the prime minister ruled out any near-term re-implementation of the goods and services tax.

A trader’s guide to navigating Budget 2025

The final quarter of 2024 (4Q2024) will likely be volatile for Malaysia’s stock market, pushing investors to protect gains made while identifying opportunities for next year, said RHB Investment Bank.

Protect gains as Bursa may be volatile in 4Q, RHB advises

Kenanga Research named a few commodity and consumer stocks as potential "outflow hedge" amid capital outflows from regional equity markets, including Malaysia, in response to Chinese stimulus measures.

The research firm noted that since the Chinese stimulus measure was announced, Asean equity markets saw broad-based outflows in early October, especially in Malaysia which was unsurprising on strong performance of 20% year to date gain in the FBM KLCI in dollar terms.

Kenanga names commodity, consumer stocks as 'hedge' against outflow amid China economic stimulus

HSBC has upgraded Malaysian stocks to ‘neutral’ from an ‘underweight’ call, betting on stronger corporate earnings and better liquidity while the economy benefits from strong foreign investment.

HSBC lifts Malaysian stocks to 'neutral' from 'underweight'

Nomura Global Markets Research has upgraded Malaysian stocks to 'overweight' from 'neutral', as part of its equity strategy call that an imminent US rate cut will stoke a rally in emerging markets.

Time to add Malaysian stocks as Fed cuts rates, says Nomura

Investors are advised to prioritise productive assets over speculative ones, amid limited availability of shariah-compliant hedging instruments, according to Bursa Malaysia.

Investors should focus on productive assets amid limited shariah-compliant hedging — Bursa

Rakuten Trade Sdn Bhd raised its year-end target for the benchmark FBM KLCI to 1,730 points (from 1,660 previously), driven by an influx of foreign direct investment (FDI) in data centres, improved corporate earnings and domestic liquidity.

Rakuten Trade raises year-end KLCI target to 1,730, overweight on banking, construction, tech, telco, power and utilities

Hong Leong Investment Bank (HLIB) Research maintained its 'overweight' rating of the construction sector, and said domestic contract awards jumped 41% year-on-year to RM20.7 billion in the first half of the year (1H2024), driven by data centre (DC) awards.

HLIB sees sizeable public infrastructure projects materialising in 2H

Pahang Islamic Affairs, Rural Development, and Orang Asli Affairs Committee chairman Datuk Seri Syed Ibrahim Syed Ahmad has confirmed that a video alleging the allocation of durian plantation land in Pahang to retired soldiers is fake.

Video alleging durian land allocation is actually Skim Tanah Rakyat land rights handover, says Pahang MP's rep

The launch of a new direct route from Chennai to Penang, via IndiGo, commencing on Saturday, marks a significant milestone in enhancing connectivity, generating economic opportunities, and solidifying Penang’s position as a regional air travel hub.

Direct route from Chennai elevates Penang as key regional air travel hub, says exco

The world’s biggest stablecoin issuer, Tether Holdings Ltd, is on track to close the year with more than US$10 billion (RM45.07 billion) in net profits, chief executive officer Paolo Ardoino said in an interview.

World’s largest stablecoin issuer Tether sees US$10b in net profits for 2024

BNP Paribas SA finalised the €5.1 billion (US$5.3 billion or RM24.0 billion) purchase of Axa SA’s asset management unit, in the biggest acquisition under chief executive officer Jean-Laurent Bonnafe.

BNP Paribas signs €5.1b deal to buy Axa’s asset manager

At least five people were killed in a car-ramming attack at a German Christmas market in the city of Magdeburg that also left more than 200 injured, officials said, and a Saudi man was arrested on suspicion of driving a car into the crowd.

Death toll in German Christmas market car-ramming rises to five, more than 200 injured

UK Prime Minister Keir Starmer’s pursuit of closer ties with China has raised private questions from Donald Trump’s incoming administration, European diplomats and even some senior British officials.

UK's Starmer is deepening China ties while allies turn away

The US Congress passed spending legislation early on Saturday in a down-to-the wire burst of activity that will avert a destabilising government shutdown ahead of the busy holiday travel season.

US Senate passes govt funding bill, averts shutdown

Honda and Nissan are considering producing vehicles in one another's factories as part of their plan to deepen ties and potentially merge, Japan's Kyodo news agency said on Saturday.

Honda and Nissan mulling mutual production of vehicles, Kyodo reports

The Cabinet draft paper on the separation of powers between the attorney general (AG) and the public prosecutor (PP) is expected to be ready by the middle of next year, said Prime Minister Datuk Seri Anwar Ibrahim.

Draft paper on separation of AG powers expected to be ready by mid-2025 — PM

The government will continue its Special Appreciation for Pensioners (PKKP) initiative, aimed at supporting affected pensioners and derivative pension recipients, to ensure the welfare of this group is well taken care of.

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