The challenges include contraction in loan applications, margin compression due to low interest rates, concerns of higher impairments after the loan moratorium and the uncertainty in economic recovery as new Covid-19 cases shoot up. It is, hence, unsurprising that share prices of most banks have remained depressed over the past several months even as stocks in other sectors like technology and glove manufacturing have skyrocketed.
THERE aren’t many reasons why banking stocks excite investors in the near term.
While the banks’ cheap valuations at the moment are attractive, the headwinds faced by the industry have shrouded the outlook.
Already a subscriber? Log in.
Limited time offer:
Just RM5 per month.
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
