Gradual pick up seen in basic materials sector

RHB Research says it continues to favour basic materials companies that are the key beneficiaries of the China border reopening scenario, a strong US dollar and environmental, social and governance preposition standouts.

PETALING JAYA: The basic materials sector is expected to pick up gradually, underpinned by the easing inflationary pressure, tightness in global aluminium supply and potential demand from the reopening of China’s economy, says RHB Research.

In terms of strategy, the research house continues to favour basic materials companies which are the key beneficiaries of the China border reopening scenario, a strong US dollar and environmental, social and governance (ESG) preposition standouts.