CIMB, Kenanga remain ‘underweight’ on auto sector

Bumper-to-bumper: Motorists inching at snail

PETALING JAYA: Analysts, including those at CIMB Research and Kenanga Research, have reiterated their “underweight” calls on the automotive sector amid stalling sales of new cars.

They also warned that currency volatility, which has resulted in higher import costs for completely built up models and completely knocked down (CKD) kit components, have increased the risk of earnings disappointment by carmakers.