Rakuten Trade head of research Kenny Yee.
PETALING JAYA: Early indicators of corporate Malaysia’s second-quarter (2Q) earnings point to continued strength in the banking, technology, consumer and utilities sectors.
Rakuten Trade head of research Kenny Yee said its initial review of 2Q results and guidance from key players showed encouraging signs in financial services and selected export-orientated technology stocks.
He also noted that with the ringgit remaining relatively stable and consumer sentiment improving, the research house anticipates a moderate rebound in consumer-facing stocks.
“Traders should closely track updates from banking heavyweights, large-cap tech and staple consumer names to position for medium-term growth,” Yee said in a statement.
According to Rakuten Trade, select counters are expected to deliver resilient earnings, supported by stable demand, cost optimisation and regional tailwinds.
It said banks are likely to benefit from sustained interest income strength.
Meanwhile, technology stocks, especially those linked to global semiconductor and artificial intelligence value chains, are showing early signs of recovery.
Among early reporters this quarter, Fraser & Neave Holdings Bhd
posted a 15.16% year-on-year (y-o-y) decline in the 2Q of financial year 2025 net profit to RM140.3mil, attributed to higher tax expenses, startup losses from its dairy operations and softer revenue.
Westports Holdings Bhd recorded a 15% y-o-y increase in its 2Q net profit to RM231mil, supported by higher throughput. Axis Real Estate Investment Trust net income rose 20.5% y-o-y to RM46.9mil, driven by higher property income.
Meanwhile, Hartalega Holdings Bhd’s net profit for the first quarter of financial year ending March 2026 dipped 60% y-o-y to RM12.6mil due to weaker average selling prices, a stronger ringgit and lower capacity utilisation.
Additionally, Ramssol Group Bhd posted a 31% gain y-o-y in its net profit due to certain projects with higher profit margins and the distributorship of human capital management licences.
With investor sentiment expected to fluctuate throughout August, Rakuten Trade said it encourages market participants to leverage its digital-first trading platform to capture opportunities across both local and foreign markets.
Rakuten Trade chief executive officer Kazumasa Mise said he expects this earnings season to stir market activity, creating timely opportunities for traders.
UOB Kay Hian wealth adviser’s head of investment research Mohd Sedek Jantan said investors are also closely scrutinising a wave of corporate earnings results to assess how businesses are adapting to the evolving macroeconomic environment and ongoing uncertainty surrounding US President Donald Trump’s tariff agenda.
The re-emergence of protectionist policy risk remains a key source of volatility for global markets.
“Back home, renewed interest in domestically-orientated sectors helped cushion the local bourse.
“Active rotation into consumer and healthcare stocks, alongside persistent trading interest in the banking sector, supported the index’s recovery.
“On the broader market, the Bursa Malaysia Construction Index and Financial Services Index outperformed, reflecting sector-specific tailwinds,” he said.
Mohd Sedek added that sentiment within the construction sector has strengthened following policy clarity under the 13th Malaysia Plan, particularly relating to large-scale infrastructure rollouts such as road upgrade projects and the Penang light rail transit initiative.
“These developments have revived investor optimism around cyclical and project-driven segments of the market, signalling greater confidence in the domestic investment pipeline amid global uncertainty.”
