Key Indices
Top Stories
Sector Update | Plantation
- The EUDR applies from 30 Dec 26; the 4 May 26 review left the dates intact and a 13 Jul 26 delegated act pulls palm derivatives in from Dec 27 onwards. EU palm oil imports keep shrinking on biofuel policy, not EUDR, leaving a smaller food-and-oleochemical pool where verified traceability earns market share. Maintain OVERWEIGHT.
Company Update | VSTECS (VST MK/BUY/RM1.63/Target: RM2.26)
- We remain positive on VSTECS, supported by resilient ICT distribution demand and stronger enterprise systems orders, particularly from the public sector. AI/DC infrastructure provides further upside, with a growing pipeline of GPU and server enquiries. While elevated hardware prices, component shortages and longer lead times may cause near-term volatility, structural demand for digitalisation, AI and cloud remains intact. The ISATEC disposal also enables capital recycling into higher-growth opportunities. Maintain BUY with an unchanged target price of RM2.26.
Market Spotlight
- The FBMKLCI closed flat (-0.06pt) at 1,714.34 yesterday.
- US stocks were lower after the close on Wednesday, as losses in the telecommunications, consumer services and industrials sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Betamek | BETA MK
- Trading Buy Range: RM0.70-0.735
PBA Holdings | PBAH MK
- Trading Buy Range: RM2.20-2.21
Redtone Digital | RIB MK
- Trading Buy Range: RM0.365-0.37
Top Stories
Sector Update | Plantation
- The EUDR applies from 30 Dec 26; the 4 May 26 review left the dates intact and a 13 Jul 26 delegated act pulls palm derivatives in from Dec 27 onwards. EU palm oil imports keep shrinking on biofuel policy, not EUDR, leaving a smaller food-and-oleochemical pool where verified traceability earns market share. Maintain OVERWEIGHT.
Company Update | VSTECS (VST MK/BUY/RM1.63/Target: RM2.26)
- We remain positive on VSTECS, supported by resilient ICT distribution demand and stronger enterprise systems orders, particularly from the public sector. AI/DC infrastructure provides further upside, with a growing pipeline of GPU and server enquiries. While elevated hardware prices, component shortages and longer lead times may cause near-term volatility, structural demand for digitalisation, AI and cloud remains intact. The ISATEC disposal also enables capital recycling into higher-growth opportunities. Maintain BUY with an unchanged target price of RM2.26.
Market Spotlight
- The FBMKLCI closed flat (-0.06pt) at 1,714.34 yesterday.
- US stocks were lower after the close on Wednesday, as losses in the telecommunications, consumer services and industrials sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Betamek | BETA MK
- Trading Buy Range: RM0.70-0.735
PBA Holdings | PBAH MK
- Trading Buy Range: RM2.20-2.21
Redtone Digital | RIB MK
- Trading Buy Range: RM0.365-0.37
Key Indices
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