Investment & Market Trends

KUALA LUMPUR: Shares of Fibromat (M) Bhd (KL:FIBRO) slipped 16% in early trading on its first day on Bursa Malaysia’s ACE Market, following its transfer from the LEAP Market, as broader market weakness and cautious investor sentiment continued to weigh on debut listings. The geotechnical services specialist saw its shares open at 46 sen, below the initial public offering (IPO) price of 55 sen per share. The stock touched an intraday low of 41 sen before stabilising, trading at 46.5 sen as at 9.15am, with over 11 million shares changing hands. At the prevailing price, Fibromat’s market capitalisation stood at approximately RM115 million. Fibromat becomes the latest in a string of subdued ACE Market debuts. Since March, all eight new listings on the exchange have closed below their respective IPO prices on their first trading day, reflecting investor caution amid challenging market conditions. Investor appetite for Fibromat’s IPO appeared restrained, with applications only marginally covering the shares on offer. Despite the lacklustre demand, the exercise raised RM31.4 million in total proceeds. Of this, RM17.8 million was channelled to the company, while RM13.6 million was raised via a secondary offering by Managing Director Ng Kian Boon, who pared down his personal stake. Fibromat remains a family-run enterprise, with Ng’s sons, Ng Chun Hou and Ng Chun Yew, holding key positions as Executive Director and Senior Operations Manager, respectively. The company previously raised funds through its LEAP Market listing in May 2019, which have since been fully utilised. Proceeds from the current IPO are earmarked for the acquisition of new machinery — including stitching machines and dust collectors — the establishment of an in-house prefabricated vertical drain installation team, and the purchase of five hydraulic excavators. Additional funds will be allocated for working capital requirements and listing-related expenses. M&A Securities Sdn Bhd acted as the principal adviser, sponsor, underwriter, and placement agent for the IPO. –The Edge Malaysia

KUALA LUMPUR : Japanese companies are actively exploring investment opportunities across Malaysia’s decarbonisation, healthcare, innovation, and service sectors, according to the Japan External Trade Organisation (JETRO). JETRO Kuala Lumpur managing director Koichi Takano said several Japanese firms have committed to multi-year investment plans beginning in 2025, with a focus on establishing engineering and operational services in industries such as oil and gas, semiconductors, and biotechnology. “Interest in Malaysia’s decarbonisation sector is set to accelerate in the lead-up to the Asia Zero Emission Community (AZEC) Summit, co-hosted by Japan and Malaysia later this year,” he said in an interview with Bernama. Major Japanese players including Mitsui & Co are currently involved in key decarbonisation initiatives in Malaysia, spanning energy efficiency, renewable energy, carbon capture and storage (CCS), and hydrogen technology. Takano noted that the improving diffusion index of Japanese business sentiment reflects renewed confidence in Malaysia’s economic outlook. “This signals increasing trust and expectations for Malaysia’s sustained growth,” he added. However, he also cautioned that global economic uncertainties persist, particularly due to US-imposed tariff measures. In this context, Malaysia’s leadership within ASEAN is becoming increasingly vital. “Malaysia has already taken initiative by engaging in ASEAN-level discussions on tariffs. We hope to see continued leadership that promotes stability and growth across the region,” Takano said. Japan remains one of Malaysia’s leading foreign investors. According to the Department of Statistics Malaysia, Japanese foreign direct investment (FDI) stood at RM102.02 billion in the fourth quarter of 2024, up from RM94.18 billion in the same quarter of 2023. This makes Japan the fourth-largest source of FDI in Malaysia. Takano shared insights from a recent business sentiment survey conducted jointly by JETRO and the Japanese Chamber of Trade and Industry, Malaysia (JACTIM). While sentiment was negative in the second half of 2024 at –11.5 points, it is projected to recover to –4.5 points in 2025. The survey, which gathered responses from 200 companies between 22 January and 21 February 2025, identified high-value manufacturing and decarbonisation as Malaysia’s most promising sectors. In the non-manufacturing segment, firms reported a strong demand for skilled talent in advanced technologies. Respondents also called for clearer guidelines on environment, social and governance (ESG) investments, the enhancement of tax incentives, and timely notifications on regulatory changes. –Bernama

Foreign investors continued to show strengthening confidence in Bursa Malaysia, recording net inflows totalling RM853.8 million for the week ending 2 May. This marks the first consecutive two-week gain in foreign investment since September 2024, according to MIDF Research. The investment research firm reported consistent foreign buying across all five trading days, with daily inflows ranging between RM50.7 million and RM340.8 million. The highest net inflow was registered on Friday at RM340.8 million, followed closely by RM325.2 million on Thursday. Sector analysis revealed strong interest in financial services, which led with a net foreign inflow of RM567.4 million. The healthcare sector followed with RM124.8 million, while industrial products and services recorded RM107.9 million. Only two sectors experienced net outflows, with energy seeing RM31.9 million in withdrawals and plantations recording RM6.0 million in outflows. Local institutional investors extended their net selling trend into a second consecutive week, registering total outflows of RM692.6 million. This represents the first two-week streak of net selling by institutions since August 2024. Retail investors also continued their net selling for a third week, divesting RM161.2 million in equities. This was almost two and a half times greater than the previous week’s outflow. Trading volume rose across all investor categories. The average daily trading volume increased by 8.7 percent for institutional investors and 5.7 percent for retail participants. Foreign investor activity saw a notable rise of 26.0 percent, highlighting growing participation from international market players. MIDF Research concluded that the data reflects a renewed appetite for Malaysian equities among global investors, supported by strong sectoral performance and wider regional market interest. –Business Times

KUALA LUMPUR : Gold futures on Bursa Malaysia Derivatives are expected to remain volatile next week, as cautious sentiment continues to dominate amid persistent global uncertainties and a weakening bullish trend in safe-haven assets. In its weekly outlook, RHB Investment Bank Bhd highlighted that traders are likely to maintain a defensive approach, with the recent momentum in gold showing signs of softening. “We maintain a negative trading bias as downward pressure continues to mount,” the bank noted in its report. RHB projected immediate support for gold prices at US$3,200 per troy ounce, while resistance is expected around the US$3,400 level. On a week-on-week basis, the spot month May 2025 contract declined to US$3,274.10 per troy ounce from US$3,316.20 previously. Other active contracts, including June, July, August and October 2025, also recorded losses, settling at US$3,288.10 per troy ounce compared to US$3,332.80 the week before. Trading activity also softened, with total volume contracting to 352 lots from 871 lots in the previous week. Open interest fell to 40 contracts from 88, indicating a more reserved stance among market participants. According to the London Bullion Market Association’s afternoon fix on 1 May, physical gold was valued at US$3,214.75 per troy ounce. –Bernama

KUALA LUMPUR : The Malaysian rubber market is poised for a modest rebound next week, supported by renewed optimism stemming from potential economic stimulus measures by China, according to the Malaysian Rubber Glove Manufacturers Association (MARGMA).   The Association of Natural Rubber Producing Countries (ANRPC) has forecast a 1.5% increase in global natural rubber (NR) consumption in 2025, reaching approximately 15.6 million tonnes, contributing to the improved market outlook. “A tight supply outlook in key producing countries is likely to provide additional price support,” a MARGMA spokesperson told Bernama. However, the association cautioned that the lack of progress in US-China trade negotiations continues to cast a shadow over global sentiment. “Rubber prices are expected to remain closely aligned with movements in regional rubber futures markets, alongside fluctuations in the ringgit against the US dollar and global crude oil prices,” the spokesperson added. Industry veteran Denis Low noted that ongoing geopolitical uncertainties, particularly those stemming from policies under former US President Donald Trump’s administration, have contributed to volatility in the market. “We are navigating an increasingly fluid and complex global economic landscape. Businesses must continue to remain agile in response to the evolving challenges shaped by international policy shifts,” he said. On a weekly basis, the Malaysian Rubber Board reported that the reference price for Standard Malaysian Rubber 20 (SMR 20) declined by 14.5 sen to 738.0 sen per kilogramme (kg), while latex in bulk dropped 16.5 sen to 609.0 sen per kg. –Bernama

KUALA LUMPUR : The crude palm oil (CPO) futures market is likely to maintain a downward bias next week, weighed by expectations of rising domestic stock levels and subdued export demand. According to palm oil trader David Ng, local inventories are anticipated to climb as Malaysia enters its peak harvesting season, a period typically associated with increased production. “Export demand remains soft, especially from major markets like India and China, which are approaching purchases cautiously due to ample global vegetable oil supply and price competitiveness from alternatives such as soybean and sunflower oil,” he said. He added that sentiment in the market is currently cautious, with traders awaiting key export and production figures. “Unless there is a notable shift in demand or new policy developments from key importing nations, the market is expected to remain subdued in the near term,” he said, forecasting that prices may trend within the RM3,750 to RM3,900 per tonne range next week. For the week ended Friday, the spot month May 2025 contract dropped RM219 to RM3,920 per tonne, while June 2025 declined RM150 to RM3,907 and July 2025 eased RM176 to RM3,881. August 2025 was down RM164 at RM3,883, September 2025 declined RM151 to RM3,888, and October 2025 settled RM138 lower at RM3,891. Weekly trading volume contracted to 240,534 lots from 410,686 the previous week, while open interest dipped to 232,901 contracts from 239,139. The physical CPO price for May South fell RM180 to RM4,020 per tonne. –Bernama