Positive corporate earnings seen in 4Q

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Positive corporate earnings seen in 4Q
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Underpinned by festive spending ahead of Christmas and Chinese New Year, more tourist arrivals, as well as higher bank earnings from rate hikes.

In a review note, released yesterday on overall corporate third quarter earnings on Bursa Malaysia, the research house reported that out of the 136 companies it covered, 38% of them posted earnings that exceeded its expectations, up from the 33% for the quarter ended June 30.

The research house said: “We had foreseen the waning of the boost coming from high commodity prices, such as crude palm oil, and the tapering off of high consumer spending due to pent-up demand in the second quarter, which was accelerated by Hari Raya and the RM10,000 one-off Employees’ Provident Fund special withdrawal amounting to RM44bil in April 2022.”

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