The stars are aligned

Although not a blowout quarter in terms of outperformance, the fact that earnings growth was more or less sustained at the frenzied first quarter (1Q) pace, is a good enough story to write of corporate Malaysia’s second quarter (2Q) reporting season.

Earnings disappointments and surprises too were more or less unchanged in the 2Q period with some 17.9% of companies reporting better than expected results while 22.7% were disappointing, which translated to a ratio of 1.27 times. This was just marginally weaker than the preceding quarter when 18% of companies surprised the market and an equal 22.7% disappointed, translating to a ratio of 1.26 times.