Malaysian Banks may be trading in range bound at least until Q4 2020. Didn’t follow the recent bull run in KLCI which is mainly driven by significant rally in glove stocks.
Q4 – we may we see the full impacts arising from:
- Post-moratorium impacts
- Rising NPLs / credit costs
- Contraction in loan growth
- Cut in net interest margin due to rate cuts
- Slowing economy / recession https://www.msn.com/en-us/finance/markets/malaysia-headed-for-recession-in-six-months-statistician-says/ar-BB14N2U3
- Domestic / geopolitical issues
Further, we do not invest in financial / banking stocks during recession times.
This post is not a recommendation or endorsement. Please refer to general disclaimer of this blog.