Decent growth: UOBKayHian’s top picks for the banking sector include CIMB Group, Hong Leong Financial Group and BIMB Holdings. The sector in general registered decent earnings growth in the first quarter. — Bloomberg
PETALING JAYA: While policy uncertainty, following the surprising outcome of the recent 14th General Election (GE14), has a negative impact on the Malaysian banking sector, the downside risk to the sector’s earnings will likely be mitigated by cost discipline and stable credit growth.
According to UOBKayHian Research, post-GE14, most banks in Malaysia are unlikely to perform as well as they did prior to the May 9 polls, hence the brokerage would maintain its “market weight” on the sector.
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