Key Indices
Top Stories
Sector Update | Plantation
- MPOB’s Sep 26 data showed palm oil inventories rising for a sixth consecutive month to a record 3.51m tonnes, as production rose 16.5% mom to a monthly record while exports fell 12.1% mom. The approximate 692,000-tonne build is the largest in MPOB's monthly series and the stock/usage ratio jumped to 2.37x. We expect stocks to peak in October-November as India restocks after its duty cut, and to ease from December onwards. Maintain OVERWEIGHT.
What’s Inside
Company Update | Tenaga Nasional (TNB MK/HOLD/RM13.04/Target: RM14.60)
- ccording to Treasury Secretary-General Tan Sri Johan Mahmood Merican, the government is in discussions with Tenaga and the regulator on measures it can take to subsidise households’ electricity next year. We believe the government may impose a tiered AFA structure from 2027 onwards, whereby it continues to subsidise domestic tariffs while allowing commercial and industrial tariff rates to float. Maintain HOLD with a DCF-based target price of RM14.60.
Market Spotlight
- The FBMKLCI remained in positive territory for most of the day, ending 9.56pt higher at 1,618.01 yesterday.
- US stocks were mixed after the close on Monday, as gains in the telecommunications, oil & gas and healthcare sectors led shares higher while losses in the technology, industrials and consumer services sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
EPB Group | EPB MK
- Trading Buy Range: RM0.245-0.25
ES Ceramics Technology | ESC MK
- Trading Buy Range: RM0.205-0.215
Harn Len Corporation | HARN MK
- Trading Buy Range: RM0.49-0.495
Top Stories
Sector Update | Plantation
- MPOB’s Sep 26 data showed palm oil inventories rising for a sixth consecutive month to a record 3.51m tonnes, as production rose 16.5% mom to a monthly record while exports fell 12.1% mom. The approximate 692,000-tonne build is the largest in MPOB's monthly series and the stock/usage ratio jumped to 2.37x. We expect stocks to peak in October-November as India restocks after its duty cut, and to ease from December onwards. Maintain OVERWEIGHT.
What’s Inside
Company Update | Tenaga Nasional (TNB MK/HOLD/RM13.04/Target: RM14.60)
- ccording to Treasury Secretary-General Tan Sri Johan Mahmood Merican, the government is in discussions with Tenaga and the regulator on measures it can take to subsidise households’ electricity next year. We believe the government may impose a tiered AFA structure from 2027 onwards, whereby it continues to subsidise domestic tariffs while allowing commercial and industrial tariff rates to float. Maintain HOLD with a DCF-based target price of RM14.60.
Market Spotlight
- The FBMKLCI remained in positive territory for most of the day, ending 9.56pt higher at 1,618.01 yesterday.
- US stocks were mixed after the close on Monday, as gains in the telecommunications, oil & gas and healthcare sectors led shares higher while losses in the technology, industrials and consumer services sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
EPB Group | EPB MK
- Trading Buy Range: RM0.245-0.25
ES Ceramics Technology | ESC MK
- Trading Buy Range: RM0.205-0.215
Harn Len Corporation | HARN MK
- Trading Buy Range: RM0.49-0.495
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.
