Key Indices
Top Stories
Sector Update | Plantation
- MPOB’s Jul 26 data showed palm oil inventories rising for a fourth consecutive month to a July record of 2.63m tonnes, though the pace of the build eased for a second month as a 14.5% mom export recovery absorbed most of the seasonal supply increase. Production and exports both came in ahead of consensus, while the stock/usage ratio declined. Maintain OVERWEIGHT on the sector, underpinned by structural demand growth from the expansion of regional biofuel mandates.
Sector Update | Renewable Energy
- A significant wave of solar PV waste is on the horizon for Malaysia. End-of-life solar panel volumes are expected to grow rapidly after 2040, reaching approximately 229,500 tonnes by 2050. Malaysia's regulatory framework has yet to specifically address EOL solar PV waste management. The proposed EPR-based E-Waste Management Mechanism is expected to establish a more robust framework that supports the sustainable disposal and recycling of solar panels. Maintain OVERWEIGHT.
Company Update | Axiata Group (AXIATA MK/BUY/RM1.91/Target: RM2.50)
- The monetisation of edotco may still happen this year, but likely on a phased approach, with an initial or partial trade sale to be completed in 2026. 2Q26 earnings are likely to remain resilient as Axiata aims to deliver an annual dividend growth of 10% supported by growing OpCos dividend contributions. Maintain BUY with a lowered SOTPbased target price of RM2.50.
What’s Inside
Strategy | Good Chemistry For Chemical Trading Companies
- Chemical distributor stocks should provide some upside in the 2Q26 results season, as current valuations underrate the structural impact perpetuated by the US’ aggressive international policies. The protracted Iran conflict perpetuates a higher-for-longer scenario which remains supportive of petrochemical distributors (eg Samchem), while the worsening US-China trade war ensures rising demand for ex-China rare earth, which in turn supports inorganic chemical producers/distributors (eg TMK Chemical).
Market Spotlight
- The FBMKLCI extended its decline and closed lower at 1,735.37 (-0.38pt) yesterday.
- US stocks were lower after the close on Monday, as losses in the utilities, technology and industrials sectors led shares lower.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Globetronics Technology | GTB MK
- Trading Buy Range: RM0.28-0.285
Hibiscus Petroleum | HIBI MK
- Trading Buy Range: RM2.00-2.05
Insight Analytics | IAB MK
- Trading Buy Range: RM1.43-1.44
Top Stories
Sector Update | Plantation
- MPOB’s Jul 26 data showed palm oil inventories rising for a fourth consecutive month to a July record of 2.63m tonnes, though the pace of the build eased for a second month as a 14.5% mom export recovery absorbed most of the seasonal supply increase. Production and exports both came in ahead of consensus, while the stock/usage ratio declined. Maintain OVERWEIGHT on the sector, underpinned by structural demand growth from the expansion of regional biofuel mandates.
Sector Update | Renewable Energy
- A significant wave of solar PV waste is on the horizon for Malaysia. End-of-life solar panel volumes are expected to grow rapidly after 2040, reaching approximately 229,500 tonnes by 2050. Malaysia's regulatory framework has yet to specifically address EOL solar PV waste management. The proposed EPR-based E-Waste Management Mechanism is expected to establish a more robust framework that supports the sustainable disposal and recycling of solar panels. Maintain OVERWEIGHT.
Company Update | Axiata Group (AXIATA MK/BUY/RM1.91/Target: RM2.50)
- The monetisation of edotco may still happen this year, but likely on a phased approach, with an initial or partial trade sale to be completed in 2026. 2Q26 earnings are likely to remain resilient as Axiata aims to deliver an annual dividend growth of 10% supported by growing OpCos dividend contributions. Maintain BUY with a lowered SOTPbased target price of RM2.50.
What’s Inside
Strategy | Good Chemistry For Chemical Trading Companies
- Chemical distributor stocks should provide some upside in the 2Q26 results season, as current valuations underrate the structural impact perpetuated by the US’ aggressive international policies. The protracted Iran conflict perpetuates a higher-for-longer scenario which remains supportive of petrochemical distributors (eg Samchem), while the worsening US-China trade war ensures rising demand for ex-China rare earth, which in turn supports inorganic chemical producers/distributors (eg TMK Chemical).
Market Spotlight
- The FBMKLCI extended its decline and closed lower at 1,735.37 (-0.38pt) yesterday.
- US stocks were lower after the close on Monday, as losses in the utilities, technology and industrials sectors led shares lower.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Globetronics Technology | GTB MK
- Trading Buy Range: RM0.28-0.285
Hibiscus Petroleum | HIBI MK
- Trading Buy Range: RM2.00-2.05
Insight Analytics | IAB MK
- Trading Buy Range: RM1.43-1.44
Key Indices
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