Key Indices
Top Stories
Sector Update | Plantation
- MPOB's Oct 26 data showed palm oil inventories rising for a seventh consecutive month to a record 3.62m tonnes, but the 111,000-tonne build was a sixth of September's and below market expectation as exports jumped 55.7% mom. We expect stocks to peak in November and to decline from December as output turns seasonally lower. Maintain OVERWEIGHT.
Company Results | Sunway REIT (SREIT MK/BUY/RM2.03/Target: RM2.40)
- 3Q26 results are within our expectations. Retail tenant sales psf growth moderated to 2% yoy ytd (1H26: +4%), although footfall remained resilient. Nevertheless, management expects full-year tenant sales growth to remain in positive territory, while rental reversion in Sunway 163 Mall could improve after the completion of its AEI. Maintain BUY with a lower target price of RM2.40. While the timeline for sponsor asset acquisition appears slower than our expectation, any eventual acquisitions are likely to be DPU-accretive.
Market Spotlight
- The FBMKLCI continued to drop 12.51pt and closed at 1,604.07 yesterday as investors remain cautious over the uncertain global environment and lack of fresh local catalysts.
- US stocks closed lower on Tuesday, as a hotter-than-expected inflation reading hardened expectations for a rate hike from the Federal Reserve next month and fueled concerns the central bank may be more aggressive in raising rates.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
LGMS | LGMS MK
- Trading Buy Range: RM0.54-0.55
Leong Hup International | LHIB MK
- Trading Buy Range: RM0.755-0.76
Hume Cement Industries | HUME MK
- Trading Buy Range: RM2.66-2.67
Top Stories
Sector Update | Plantation
- MPOB's Oct 26 data showed palm oil inventories rising for a seventh consecutive month to a record 3.62m tonnes, but the 111,000-tonne build was a sixth of September's and below market expectation as exports jumped 55.7% mom. We expect stocks to peak in November and to decline from December as output turns seasonally lower. Maintain OVERWEIGHT.
Company Results | Sunway REIT (SREIT MK/BUY/RM2.03/Target: RM2.40)
- 3Q26 results are within our expectations. Retail tenant sales psf growth moderated to 2% yoy ytd (1H26: +4%), although footfall remained resilient. Nevertheless, management expects full-year tenant sales growth to remain in positive territory, while rental reversion in Sunway 163 Mall could improve after the completion of its AEI. Maintain BUY with a lower target price of RM2.40. While the timeline for sponsor asset acquisition appears slower than our expectation, any eventual acquisitions are likely to be DPU-accretive.
Market Spotlight
- The FBMKLCI continued to drop 12.51pt and closed at 1,604.07 yesterday as investors remain cautious over the uncertain global environment and lack of fresh local catalysts.
- US stocks closed lower on Tuesday, as a hotter-than-expected inflation reading hardened expectations for a rate hike from the Federal Reserve next month and fueled concerns the central bank may be more aggressive in raising rates.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
LGMS | LGMS MK
- Trading Buy Range: RM0.54-0.55
Leong Hup International | LHIB MK
- Trading Buy Range: RM0.755-0.76
Hume Cement Industries | HUME MK
- Trading Buy Range: RM2.66-2.67
Key Indices
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