Key Indices
Top Stories
Strategy | Alpha Picks: Staying Defensive, Seizing Selective Opportunities
- Our Oct 26 Alpha Picks outperformed the FBMKLCI on narrower losses of -1.0%. For Nov 26, we expect Malaysian equities to remain range-bound, as persistent external uncertainties, subdued foreign fund flows and cautious investor positioning continue to constrain market upside. Nevertheless, October’s broad-based correction has created opportunities to selectively accumulate fundamentally sound value laggards at increasingly compelling valuation. Nov 26 picks include CIMB, CelcomDigi, Dialog, Gamuda, Gas Malaysia, KPJ, Northeast, PETD, SDG, and Solarvest.
Company Update | Velesto Energy (VEB MK/BUY/RM0.18/Target: RM0.27)
- Global rig outlook continues to see further rig tightening. For Velesto Energy, channel checks indicate Naga 3 (N3) secured a short-term contract in 4Q26 as expected, implying a utilisation recovery to 95% by year-end. DCR is not likely to trend further down. Despite cutting EBITDA/ DPS forecasts, VEB is now trading in tandem with global JU rig asset-based valuation, but far cheaper vs other listed peers. Maintain BUY with a lower target price of RM0.27.
What’s Inside
Company Update | Tenaga Nasional (TNB MK/HOLD/RM13.16/Target: RM14.60)
- Tenaga, IOI Corporation and a consortium of 12 SMEs have agreed to develop a 500MW CRESS solar power project in Bahau, Negeri Sembilan. The 1,300 acres of land own by IOI supports TNB’s long-term RE offtake agreement with DayOne. Under the agreement, DayOne is expected to procure up to 500MWac of RE over a 21-year period to support its data centre operations in Malaysia (previously announced on 11 Jun 25). Maintain HOLD with a DCF-based target price of RM14.60.
Market Spotlight
- The FBMKLCI rose 2.34pt to close at 1,621.85 yesterday, buoyed by positive sentiment in the overnight US market as index-linked counters rebounded strongly.
- US stocks were mixed after the close on Tuesday, as gains in the technology, industrials and consumer services sectors led shares higher while losses in the consumer goods, basic materials and telecoms sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Capital A | CAPITALA MK
- Trading Buy Range: RM0.23-0.25
Eita Resources | EITA MK
- Trading Buy Range: RM0.65-0.675
Johor Plantation Group | JPG MK
- Trading Buy Range: RM1.81-1.82
Top Stories
Strategy | Alpha Picks: Staying Defensive, Seizing Selective Opportunities
- Our Oct 26 Alpha Picks outperformed the FBMKLCI on narrower losses of -1.0%. For Nov 26, we expect Malaysian equities to remain range-bound, as persistent external uncertainties, subdued foreign fund flows and cautious investor positioning continue to constrain market upside. Nevertheless, October’s broad-based correction has created opportunities to selectively accumulate fundamentally sound value laggards at increasingly compelling valuation. Nov 26 picks include CIMB, CelcomDigi, Dialog, Gamuda, Gas Malaysia, KPJ, Northeast, PETD, SDG, and Solarvest.
Company Update | Velesto Energy (VEB MK/BUY/RM0.18/Target: RM0.27)
- Global rig outlook continues to see further rig tightening. For Velesto Energy, channel checks indicate Naga 3 (N3) secured a short-term contract in 4Q26 as expected, implying a utilisation recovery to 95% by year-end. DCR is not likely to trend further down. Despite cutting EBITDA/ DPS forecasts, VEB is now trading in tandem with global JU rig asset-based valuation, but far cheaper vs other listed peers. Maintain BUY with a lower target price of RM0.27.
What’s Inside
Company Update | Tenaga Nasional (TNB MK/HOLD/RM13.16/Target: RM14.60)
- Tenaga, IOI Corporation and a consortium of 12 SMEs have agreed to develop a 500MW CRESS solar power project in Bahau, Negeri Sembilan. The 1,300 acres of land own by IOI supports TNB’s long-term RE offtake agreement with DayOne. Under the agreement, DayOne is expected to procure up to 500MWac of RE over a 21-year period to support its data centre operations in Malaysia (previously announced on 11 Jun 25). Maintain HOLD with a DCF-based target price of RM14.60.
Market Spotlight
- The FBMKLCI rose 2.34pt to close at 1,621.85 yesterday, buoyed by positive sentiment in the overnight US market as index-linked counters rebounded strongly.
- US stocks were mixed after the close on Tuesday, as gains in the technology, industrials and consumer services sectors led shares higher while losses in the consumer goods, basic materials and telecoms sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Capital A | CAPITALA MK
- Trading Buy Range: RM0.23-0.25
Eita Resources | EITA MK
- Trading Buy Range: RM0.65-0.675
Johor Plantation Group | JPG MK
- Trading Buy Range: RM1.81-1.82
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
