Banks@Malaysia: Waiting For Q4

Malaysian Banks may be trading in range bound at least until Q4 2020. Didn’t follow the recent bull run in KLCI which is mainly driven by significant rally in glove stocks.

Banking 31052020

Q4 – we may we see the full impacts arising from:

  1. Post-moratorium impacts
  2. Rising NPLs / credit costs
  3. Contraction in loan growth
  4. Cut in net interest margin due to rate cuts
  5. Slowing economy / recession https://www.msn.com/en-us/finance/markets/malaysia-headed-for-recession-in-six-months-statistician-says/ar-BB14N2U3
  6. Domestic / geopolitical issues

Further, we do not invest in financial / banking stocks during recession times.

cycle

This post is not a recommendation or endorsement. Please refer to general disclaimer of this blog.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s