Bright outlook for banks on attractive valuations


CGSI Research is keeping its “overweight” call on the banking sector.

PETALING JAYA: Analysts remain constructive on the banking sector, backed by inexpensive valuations as well as an appealing 5% dividend yield.

In a report, Hong Leong Investment Bank (HLIB) Research said in addition to that, the KL Finance Index has underperformed the FBM KLCI year-to-date, leaving space for playing catch-up, while its large-cap stature positions it as a prime beneficiary of the eventual foreign buying from the emerging markets’ rotational play.

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