Market Sentiment Lifts On Better 3Q Tech, Glove Results -- CIMB Securities

KUALA LUMPUR, Nov 27 (Bernama) -- The third-quarter 2025 (3Q 2025) results season is tracking better than the second quarter (2Q 2025), supporting market sentiment as earnings improve in the technology and rubber glove sectors—both key underperformers in the first half of 2025.

In a note today, CIMB Securities Sdn Bhd said aggregate net profit for companies that have reported rose 1.1 per cent quarter-on-quarter, driven by stronger performances in the construction, real estate investment trusts, transport, and non-banking financial institutions sectors.

However, total net profit fell 2.1 per cent year-on-year, largely due to losses at Petronas Chemicals Group Bhd, it added.

The research firm said 65 companies under its coverage, accounting for 70 per cent of the total, have released results. Of these, 23 per cent (15 companies) beat expectations, 23 per cent missed, and the remaining 54 per cent (35 companies) met expectations, as of 26 November.

“This translates into a beat-to-miss ratio of 1.00, an improvement from 2Q 2025’s 0.55, 1Q 2025’s 0.24, and our earlier read of 0.8 published on November 24,” it said.

On dividends, 18 per cent of companies under CIMB Securities’ coverage declared higher y-o-y payouts in 3Q 2025, while eight per cent announced lower distributions.

Among KLCI constituents under coverage, 19 of 30 companies (63 per cent) have reported, with 32 per cent (six companies) beating expectations and 16 per cent (three companies) falling short.

“This yields a beat-to-miss ratio of 2.0, significantly stronger than the 1.0 ratio for our broader coverage universe, indicating that large-cap names are delivering more resilient and better-than-expected results,” the firm said.

It highlighted SD Guthrie Bhd and KL Kepong Bhd for exceeding expectations, driven by stronger plantation contributions supported by higher average selling prices for palm products. AMMB Holdings Bhd and Malayan Banking Bhd also beat expectations, benefiting from lower net provisions and impairments alongside resilient fund-based income.

-- BERNAMA