Bank Negara Malaysia in its annual Economic & Monetary Review Report 2022, expects moderate real GDP growth of +4.0% to +5.0% range. In its accompanying Financial Stability Review second half 2022 report, BNM noted business and household risks are manageable for the banking system.
“Asset quality, loans under repayment assistance have declined to 4.2% of total system loans, while underlying gross impairment ratio is a low 1.7%,” said Maybank Research Pte Ltd (Maybank) said in the recent ASEAN+ Fortnightly Report.
Maybank is favourable towards aluminium smelter Press Metal, this sentiment underpinned by its entrenched entrenched position as the largest aluminium producer in South East Asia, strategically located within close proximity to raw materials and having significant energy cost advantage via its hydro-powered facility in Sarawak are its strong attributes.
Maybank upgraded Petronas Chemicals Group Bhd to HOLD as its operations and maintenance division ASPs have likely found a bottom following modest quarter one 2023 gains, further supported by OPEC+’s decision to scale back production through to Dec 2023.
Convenience store operator Mynews Holdings Bhd has been cut to HOLD too after the disappointing quarter one financial year 2023 results on weaker sales and higher-than-expected operating expenses.
Mynews faces a challenging operating environment in financial year 2023 E, with softer consumer spending and increasing operating costs delaying earnings turnaround.
