Latest news with #KenangaIB
Barnama
6 days ago
- Business
- Barnama
RM100 Cash Aid To Have RM3 Bln Retail Injection, Boost Consumption
BUSINESS By Siti Radziah Hamzah KUALA LUMPUR, July 24 (Bernama) -- The targeted fiscal measures announced by Prime Minister Datuk Seri Anwar Ibrahim on Wednesday are anticipated to enhance near-term consumption, especially for essential goods and household items, according to Kenanga Investment Bank Bhd (Kenanga IB). In its research note, Kenanga IB said among the fiscal measures, the one-off RM100 cash aid to every Malaysian citizen aged 18 and above, which would be disbursed on an individual basis rather than per household, was widening the consumption impact. 'We maintain a neutral stance on the consumer sector following the government's surprise RM100 cash aid announcement under the Basic Rahmah Contribution (SARA) programme, which marks the first cash aid for all adult citizens in Malaysia and could temporarily boost near-term spending ahead of the year-end festive season,' it added. While the scale is smaller than previous stimulus rounds, Kenanga IB noted that mass-market retailers such as MR DIY, AEON, and Padini might see a modest uplift, supported by seasonal momentum and improved sentiment. It added that additional cost-of-living measures, including a 3.0 per cent cut in the RON95 fuel price, toll hike suspension, and an expanded Jualan Rahmah MADANI programme, would further ease pressure on consumers. 'All in, we estimate about RM3 billion retail injection, comprising RM2.2 billion from the new RM100 cash aid, RM300 million from Rahmah MADANI sales and RM500 million in toll savings,' Kenanga IB said. The investment bank noted that although the RM100 aid was restricted to essential items, the increase in disposable income might still lead to spillover spending and consumers were likely to reallocate some of their usual budget toward discretionary purchases. 'The impact is likely to be more meaningful for the B40 group, where RM100 represents about 4.0 per cent of monthly household disposable income, compared to 2.0 per cent for M40 and 1.0 per cent for T20,' it added.
The Sun
21-07-2025
- Business
- The Sun
M'sian economy set for steady growth in H2'25: Kenanga IB
KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga IB) expects Malaysia's economy to maintain steady growth in the second half of 2025 (H2'25) led by services and construction, particularly following final government approval for the Mass Rapid Transit Line 3 mega infrastructure project. In a research note yesterday, the bank said the outlook is supported by advanced GDP estimates for the second quarter of 2025 (Q2'25), which were in line with its projections, reflecting sustained growth in services despite continued contraction in mining and a slowdown in manufacturing. 'However, prolonged commodity weakness and persistent tariff risks will continue to weigh on overall growth. That said, we maintain our 2025 GDP growth forecast at 4.3% (2024: 5.1%),' it said. Last Friday, the Department of Statistics Malaysia reported that the economy is forecast to grow by 4.5% in the Q2'25 based on advance GDP estimates, slightly outpacing the 4.4% growth recorded in the previous quarter. Robust domestic demand is expected to drive growth despite global headwinds. Meanwhile, Kenanga IB said it is maintaining its 2025 exports forecast at 3.1% (2024: 5.7%), amid ongoing US President Donald Trump's tariff policies and weak commodity exports. 'While US trade tensions have eased following the recent deal, uncertainty persists, particularly if major economies retaliate. This could disrupt global trade and weigh on Malaysia's growth outlook,' it said. Additionally, the bank said the ongoing US-Malaysia trade negotiations are contributing to further ambiguity, especially as Malaysia's tariff rates remain higher than those of Indonesia's (19%) and Vietnam's (20%). Kenanga IB shared that exports grew 3.8% in H1'25 compared with 5.4% in January-May, slightly above its full-year forecast. However, growth slowed to 3.4% in Q2'25 (Q1'25: 4.3%). 'June's underperformance reflects continued volatility in external trade, with short-term prospects clouded by uncertainty over tariffs and commodity shipments, along with weaker-than-expected pre-tariff front-loading,' it said. The bank also noted that demand for electrical and electronics (E&E) products is expected to remain resilient, supported by new product launches and growing demand for 5G and artificial intelligence (AI) adoption, although overall growth is likely to be modest. Despite external demand uncertainties, CGS International Securities Malaysia Sdn Bhd projects resilient domestic economic activity and is maintaining its 2025 GDP growth forecast of 4.2%. 'Looking at both GDP and trade data, we suspect that the softening growth in Q2'25 may mark the start of a slowdown in external demand. 'We expect H2'25 to be a challenging period given tariff risks and external uncertainties, particularly following the recently revised US tariff of 25% on Malaysian exports,' it said. However, on a positive note, the securities firm views the tariff implementation date as a moving goalpost, given Trump's open stance on negotiations, which could provide extended support for exports. It said that domestic growth, supported by both spending and investment, will be underpinned by labour market reforms such as wage hikes, policy rate cuts amid low inflation, higher foreign tourist arrivals, and renewed investment momentum. – Bernama
Barnama
07-07-2025
- Business
- Barnama
Kenanga IB Launches Structured Warrants Linked To Hang Seng Indices On Bursa Malaysia
REGION - CENTRAL > NEWS KUALA LUMPUR, July 7 (Bernama) -- Kenanga Investment Bank Bhd has launched a new suite of structured warrants on Bursa Malaysia today, offering Malaysian investors direct access to global markets through exposure to two of Hong Kong's leading Hang Seng equity benchmarks. The two new structured warrants are the Hang Seng Tech Index (HSTECH) and the Hang Seng China Enterprises Index (HSCEI). The HSTECH comprises the 30 largest technology companies listed in Hong Kong, including giants such as Alibaba, Tencent and Meituan, while the HSCEI captures leading Chinese companies listed in Hong Kong, across the information technology, consumer discretionary, and financial sectors. In essence, this index represents a diversified snapshot of China's economic transformation. bootstrap slideshow Kenanga IB group managing director Datuk Chay Wai Leong said the launch of HSCEI and HSTECH structured warrants marks a pivotal step in its mission to democratise access to global markets. "As Malaysia's leading issuer, Kenanga group remains committed to driving innovation, expanding investor opportunities, and shaping the future of structured warrants. "This initiative reflects our long-term vision to empower a new generation of traders while reinforcing our leadership in the region's capital markets," he said during the launch at Bursa Malaysia today. He added that Kenanga IB warrants achieved a record-breaking 52 per cent market share with a total turnover of RM15.7 billion in 2024. Bursa Malaysia chief executive officer Datuk Fad'l Mohamed said that with this issuance, this milestone expands the choices available to Malaysian retail investors, giving them direct exposure to globally recognised companies. "The inclusion of these foreign equities underlying companies enriches the Malaysian market, making investing access more global and relatable," he said at the launch.
The Star
23-06-2025
- Business
- The Star
CIMB revises 2025 GDP forecast to 4.3% on trade easing, stronger US ties
KUALA LUMPUR: CIMB Treasury and Market Research has revised its 2025 gross domestic product (GDP) growth forecast for Malaysia upwards to 4.3 per cent from 4.0 per cent previously, premised on easing trade tensions and indications of constructive United States-Malaysia dialogue. In a note, it said that although this represents an improvement, it still falls short of the government's 4.5-5.5 per cent target, reflecting a more cautious view on the recovery in external demand and domestic momentum. "Along with benign inflation (Jan-April 2025: 1.5 per cent year-on-year), this allows Bank Negara Malaysia (BNM) room to cut the overnight policy rate (OPR) to 2.75 per cent in the third quarter of 2025,' it said. Meanwhile, Kenanga Investment Bank Bhd (Kenanga IB) is maintaining its 2025 GDP growth forecast for Malaysia at 4.3 per cent, as domestic demand and the services sector are expected to stay resilient despite global economic uncertainty. However, it said persistent weakness in the commodity-related sector will continue to weigh on growth momentum. On export, the investment bank noted that exports grew 5.5 per cent in the first five months of this year, ahead of the full-year forecast. "Although May's export data was underwhelming, we expect the dip to be short-lived with a likely rebound in June. However, growth is expected to remain volatile in the near term due to the July reciprocal tariff deadline,' it said. Nevertheless, Kenanga IB see continued support from the global tech upcycle, driven by artificial intelligence-related demand, new product launches, and Malaysia's export diversification. - Bernama
New Straits Times
19-06-2025
- Business
- New Straits Times
Kenanga IB sees limited impact on Scientex from US tariffs
KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga IB) expects only minimal direct impact from the US tariffs threat for Scientex Bhd as the group has a manufacturing plant in the United States, making its exports to the US below five per cent of its total revenue. Kenanga IB said management had guided on a challenging outlook for its plastic packaging segment given global economic and tariffs uncertainties and aggressive competition in the market. "As the price of crude oil has surged more than 10 per cent lately largely due to the latest escalations of geopolitical tensions in the Middle East, we are monitoring any potential increase in resin price," it said in a note today. In a Bursa Malaysia filing yesterday, Scientex recorded a lower net profit of RM123.87 million for the third quarter ended April 30, 2025, compared with RM130.50 million in the same period a year ago. The packaging manufacturer and property developer said lower profit was mainly attributed to lower export sales and foreign exchange losses in the packaging division, which saw its revenue decline by 6.4 per cent to RM614.8 million from RM656.9 million. For its property division, Kenanga IB said sales of its affordable properties should continue to be resilient given encouraging take-up rates from recent launches. The group's unbilled sales stood at RM1.7 billion as of the second quarter of this fiancial year. "In the past one year, we observe continuous demand for affordable houses priced below the RM500,000 mark while we saw rising appetite for housing in the range of RM500,000 to RM1 million signalling improving affordability," it added. The research house maintained Scientex as 'market perform' with a higher target price of RM3.60 from RM3.34 previously. As of 10.53 am, Scientex's share price rose one sen to RM3.35, with 789,00 shares traded on Bursa Malaysia.
