Sime Property, Bermaz, Power Root to gain from OPR cut

However, an OPR cut is negative for banks, as the downward repricing of lending rates has historically been wider than the decrease in deposit rates, leading to potential narrowing in the banks’ net interest margins.

KUALA LUMPUR: CGS-CIMB Equities Research views the 25 basis point cut in the Overnight Policy Rate (OPR) to be positive for cyclical sectors.

In its research note on Wednesday it said the beneficiaries were the property sector (top pick: Sime Darby Property), auto (top pick: Bermaz Auto), and consumer (top pick: Power Root) due to the increase in consumers’ disposable incomes.