Malaysia Market Outlook Q3: Catch-Up Plays & Dividends in Focus

As Malaysia enters Q3 2025, the market is cautiously optimistic after rebounding from earlier tariff volatility. With trade talks ongoing, a selective approach is key for investors looking for opportunities.

Key Investment Themes for Q3:
1. Catch-Up Plays: Focus on quality large-caps that have lagged in the recent rebound but have strong fundamentals.

2. Small-Cap Value: The valuation gap has widened, making undervalued small-caps attractive, especially export-oriented tech if trade talks are favorable.

3. Dividend Plays: A strengthening Ringgit and tame inflation make high-yield stocks appealing.

Key Sectors to Watch:
Construction: Strong contract visibility (Penang LRT, data centers).Picks: Gamuda, IJM.
Renewable Energy: Gaining from LSS5+ and rising energy demand.Picks: Solarvest, Engtex.
Banking: Fundamentally strong with attractive valuations.Picks: AMMB, CIMB.
Gloves (Contrarian): Potential rebound play on US restocking.Pick: Kossan.

The Investor Takeaway:
The strategy for Q3 is to be selective. Focus on quality laggards, high-yield dividend stocks, and cautiously explore value in small-caps with specific catalysts. While risks remain, Malaysia’s relative advantages provide fertile ground for strategic investors.

Which theme are you focusing on this quarter? #BursaMalaysia #MarketOutlook #Investing #DividendStocks #ValueInvesting #SmallCaps #StockMarket #MalaysiaEconomy