Malaysia Morning Wrap | Fitch Affirms Malaysia BBB+ with Stable Outlook, Sees 4.6% Growth in 2025
Key Takeaways:
• Wall Street Retreats as Big Tech and Blue Chips Drag Ahead of Fed Meeting
• KLCI Slips as Caution Builds Ahead of Expected Fed Rate Cut
• Fitch Affirms Malaysia's BBB+ Rating with Stable Outlook
• Stocks to watch: Apex Healthcare, MISC, etc.
🇺🇸Wall Street Summary
$S&P 500 Index (.SPX.US)$ 6,846.51 (-0.35%)
$Dow Jones Industrial Average (.DJI.US)$ 47,739.32 (-0.45%)
$Nasdaq Composite Index (.IXIC.US)$ 23,545.90 (-0.14%)
U.S. equities slipped Monday as heavyweight techs and select blue chips weighed on the tape. The $Dow Jones Industrial Average (.DJI.US)$ fell 0.5% to 47,739.32, the $S&P 500 Index (.SPX.US)$ eased 0.4% to 6,846.51, and the $Nasdaq Composite Index (.IXIC.US)$ edged down 0.1% to 23,545.90, ending recent winning streaks.
Tesla dropped 3.4% after a Morgan Stanley downgrade, while Marvell sank 7% on reports Microsoft is exploring custom chips with Broadcom and after Benchmark cut its rating amid concerns it may have lost Amazon's Tranium 3/4 work. Intel, Alphabet, and Adobe also declined, and losses in names like Nike and Procter & Gamble added pressure.
With little fresh macro news before the Fed's two-day meeting, markets still look for a 25 bp rate cut Wednesday. Risk sentiment was further dented by crypto softness: $Bitcoin (BTC.CC)$ -0.7% to $90,803.30, $Solana (SOL.CC)$ -1.4% to $131.11, $Ethereum (ETH.CC)$ -0.2% to $3,135.66, while $Ripple (XRP.CC)$ was unchanged at $2.08.
🇲🇾Bursa Market Insight
$FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ 1,612.78 (-0.23%)
Bursa Malaysia softened Monday as caution ahead of an expected Fed rate cut kept activity muted. The $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ slipped 3.74 points (0.23%) to 1,612.78, with 20 of 30 index stocks lower. Market breadth was weak (741 losers vs 329 gainers; 583 unchanged) on 3.35 billion shares worth RM2.15 billion.
Consumer staples led declines— $F&N (3689.MY)$ (-34 sen), $AJI (2658.MY)$ (-28 sen), $DLADY (3026.MY)$ (-22 sen)—while $KLK (2445.MY)$ (-26 sen) and $PETGAS (6033.MY)$ (-22 sen) also fell. ACE Market debutant $BMS (0385.MY)$ dropped 20.45% to 17.5 sen on heavy trading.
Malaysia's CPO output likely eased slightly in November due to localized floods causing short-term harvesting delays, but MPOB expects minimal nationwide disruption and keeps the 2025 production target of 19.5 million tonnes intact. Official November data will be released Wednesday.
Fitch kept Malaysia's long-term foreign-currency rating at BBB+ with a stable outlook, citing solid medium-term growth, diversified exports, and a persistent current account surplus, tempered by high public debt, a weaker revenue base, and softer external liquidity versus peers.
Fitch expects a gradual decline in debt-to-GDP through fiscal consolidation and projects GDP growth of 4.6% in 2025, 4.0% in 2026, and 4.2% in 2027, supported by strong labor markets, rising wages, and a robust investment pipeline (approved projects up 13.2% year-on-year).
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🔔Stocks to Watch
$AHEALTH (7090.MY)$ Independent adviser Kenanga Investment Bank urged minority shareholders to accept a RM2.64-per-share privatisation offer from a consortium led by CEO Dr Kee Kirk Chin and Quadria Capital, calling it fair and reasonable.
$CAPITALA (5099.MY)$ The High Court approved a RM2.74 billion capital reduction, enabling the distribution of $AAX (5238.MY)$ shares. Capital A will seek a further RM5.51 billion reduction under its regularisation plan and aim to exit PN17 status.
$MISC (3816.MY)$ won a contract from PETRONAS Carigali Brunei to lease, operate, and maintain a floating production unit for a Brunei gas project. Operations are slated for H1 2029; the charter runs 12 years with up to three one-year extensions.
$RAMSSOL (0236.MY)$ Its unit Rider Gate was appointed by the Transport Ministry as JPJ's authorised collection agent for ownership transfers, licence renewals, and summons payments for two years once services commence. A formal agreement will follow; value depends on transaction volume.
$MYNEWS (5275.MY)$ JAG Capital, controlled by Minister Johari Ghani, increased its stake to about 20% after buying 48.3 million shares in off-market trades on Dec 5. Financial terms were not disclosed.
$TANCO (2429.MY)$ named CCCC Dredging Southeast Asia, a unit of China's CCCC, as the proposed EPC contractor for the sea port component of its Smart AI Container Port in Port Dickson. The package has an indicative cap of RM3.53 billion and a build time of about 3.5 years, subject to final terms.
$SMRT (0117.MY)$ agreed to buy 37.5% of Singapore-based Novus Technologies for S$7.09 million (RM22.48 million) to expand its IT and digital solutions portfolio, via a conditional SPA with Asia Fintech Ventures.
$PTRANS (0186.MY)$ plans a perpetual RM1.5 billion sukuk wakalah programme to fund capex, working capital, and other shariah-compliant purposes, with potential sustainability or sustainability-linked issuances.
$LBALUM (9326.MY)$ 2QFY2026 net profit nearly tripled to RM22.03 million, driven by stronger aluminium and property earnings, while revenue slipped 3% to RM270.86 million. No dividend was declared.
💡Buy or Sell?
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The Edge.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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101628797kammalranM : stable outlook, where ?hahhaha
Slay2dudes : ok
Muhh azfi : no
101628797kammalranM : while investors money yr by yr decreasinh in busa , thy were saying stable ,, wht a manipulation,
101628797kammalranM : more thn 2months ,, non stop market crashin,
PAUL BIN ANTHONY : yes
Francisssss : Here, there is a tendency to follow declines but not rises. There always seems to be a draft article they repeatedly copy and paste to explain why there was no increase this time. Then, towards the end of each year, they revert to targeting last year’s 1800 points. Beyond writing these few lines, what else can analysts contribute? Are they hiring anyone or not?![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
shabtrading : why this keep going down week after week?