Bank Negara raised the overnight policy rate (OPR) by 25 basis points to 3.00%, notwithstanding easing of inflationary pressures and rising US recession risk.
March consumer price index (CPI) moderated to 3.4% year-on-year versus Feb at 3.7%. This further normalisation of monetary accommodation is to ensure a stance appropriate to preventing risk of future financial imbalances.
“We expect the OPR to be kept at 3.00% for the rest of the year,” said Maybank Research Pte Ltd (Maybank) in the recent ASEAN+ Fortnightly Report.
Genting signed a conditional sales and purchase agreement with Smart Miami City to sell its 15.5 acre property in Miami for USD1.2 billion cash, realising a USD967 million gain on disposal that will boost book value per share by 34%, to RM3.
Maybank expects the funds will be utilised to strengthen its bid for a lucrative downstate casino licence for Resorts World New York City that will allow it to deploy table games.
Maybank reviewed Bursa Malaysia’s environmental, social, governance (ESG) matters post the release of its financial year 2022 Sustainability & CG Reports.
Bursa’s updated greenhouse gas (GHG) score is 69 versus 73 in Maybank’s last review, with the lower score due to higher GHG emissions. Of note, Bursa met its carbon neutrality target for 2022 by offsetting all operational GHG emissions generated in 2021 via the purchase of 7,588 tonnes of carbon dioxide equivalent.
Maybank also introduced their ESG 2.0 tear sheet for EMS player V.S. Industry (VSI MK) with an overall score of 56, noting a sustainability framework built around 3 ESG initiatives namely, building a responsible supply chain, reducing carbon emissions, and investing in capability, training and resources.
“Towards Singapore, inflation came in at a slightly slower pace on a broad based easing of services and food. We have cut our headline CPI expectations to 5.6% as a result,” said Maybank.
Manufacturing remains in recession and China re-opening is yet to deliver spillover demand. In quarter one reporting season, S-REITs were mixed with industrials disappointing and hospitality ahead of estimates.
So far, banks are ahead of expectations but growth is likely to slow going forward. Maybank expects tech manufacturing to be weaker year-on-year amidst high inventory levels.
