Key Indices
Top Stories
Sector Update | Plantation
- India's 24 September duty cut favours sunflower oil, but Black Sea ports cannot ship enough to use it before yearend. We expect palm oil to hold above its 3Q26 share of 50% of India's edible oil imports through November, with risks rising from December. Indian buying will not clear Malaysian palm oil stocks, which we estimate at a record 3.3m tonnes at end-September. Maintain OVERWEIGHT.
Company Update | Northern Solar Holdings (NORTHERN MK/BUY/RM1.16/Target: RM1.40)
- Northern Solar has secured an additional RM34m utility-scale EPCC contract under the LSS5 programme, underpinning earnings visibility over FY27-28. NS also recently completed its transfer to Bursa’s Main Board on 6 Oct 26. Blue-sky scenario: Winning a sizeable CRESS project will lift valuation by RM320m. This suggests a bluesky fair value of RM2.20/share within a three-year time frame. Maintain BUY with a higher PE-based target price of RM1.40/share, based on 15x PE versus sector average 19x PE.
Market Spotlight
- The FBMKLCI dropped 21.57pt (-1.32%) to close at 1,611.78 yesterday as investors remained cautious due to an uncertain global environment and lack of fresh local catalysts.
- US stocks were lower after the close on Wednesday, as losses in the industrials, basic materials and financials sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Dayang Enterprise Holdings | DEHB MK
- Trading Buy Range: RM1.49-1.50
Empire Premium Food | EMPIRE MK
- Trading Buy Range: RM0.91-0.915
Ge-Shen Corporation | GSCB MK
- Trading Buy Range: RM1.16-1.17
Top Stories
Sector Update | Plantation
- India's 24 September duty cut favours sunflower oil, but Black Sea ports cannot ship enough to use it before yearend. We expect palm oil to hold above its 3Q26 share of 50% of India's edible oil imports through November, with risks rising from December. Indian buying will not clear Malaysian palm oil stocks, which we estimate at a record 3.3m tonnes at end-September. Maintain OVERWEIGHT.
Company Update | Northern Solar Holdings (NORTHERN MK/BUY/RM1.16/Target: RM1.40)
- Northern Solar has secured an additional RM34m utility-scale EPCC contract under the LSS5 programme, underpinning earnings visibility over FY27-28. NS also recently completed its transfer to Bursa’s Main Board on 6 Oct 26. Blue-sky scenario: Winning a sizeable CRESS project will lift valuation by RM320m. This suggests a bluesky fair value of RM2.20/share within a three-year time frame. Maintain BUY with a higher PE-based target price of RM1.40/share, based on 15x PE versus sector average 19x PE.
Market Spotlight
- The FBMKLCI dropped 21.57pt (-1.32%) to close at 1,611.78 yesterday as investors remained cautious due to an uncertain global environment and lack of fresh local catalysts.
- US stocks were lower after the close on Wednesday, as losses in the industrials, basic materials and financials sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Dayang Enterprise Holdings | DEHB MK
- Trading Buy Range: RM1.49-1.50
Empire Premium Food | EMPIRE MK
- Trading Buy Range: RM0.91-0.915
Ge-Shen Corporation | GSCB MK
- Trading Buy Range: RM1.16-1.17
Key Indices
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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.
