Recovery on the cards for basic materials companies

has a “buy” call on all three companies – Press Metal Aluminium Holdings Bhd, Cahya Mata Sarawak Bhd (CMS) and Malayan Cement Bhd – under its coverage. (File pic shows Press Metal's Samuljadi plant.)

PETALING JAYA: Basic materials companies are expected to chart stronger earnings next year as demand for their products will continue to rise as economic activities pick up.

But a deterioration in global macroeconomic conditions, unfavourable raw material prices, currency fluctuations and a resurgence of Covid-19 cases could derail all that.