Maybank Investment Bank Bhd has identified four selective sectors that investors may consider for the second half of 2023 (2H2023), namely aviation, consumer goods, healthcare, and utilities, as potential options for earnings growth.
Its head of equity research Anand Pathmakanthan said the aviation sector is experiencing a positive shift due to factors such as tight supply, high forward sales, and decreasing jet fuel prices, which have led to an increase in earnings.
“With the potential for a stronger ringgit, effective jet fuel costs may further decrease, making it a promising option for investors.
“That is positive for earnings for such a high operating leverage business like aviation,” he said during the 2H2023 retail equity market outlook webinar, today.
Pathmakanthan also mentioned that in the consumer goods sector, there is a preference for consumers to opt for lower-priced or cheaper products or services compared to what they previously purchased due to challenging economic conditions.
Regarding healthcare and utilities, these sectors are perceived as defensive options with investment strategies or assets that are considered relatively resistant to market downturns and economic fluctuations.
“Investors may consider stocks within these sectors for stability and security in uncertain market conditions,” he added
