RHB keeps 'overweight' call on banking sector after BN win

Business & Markets 2013
Written by Bernama
Monday, 06 May 2013 12:16
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KUALA LUMPUR (May 6): RHB Research has maintained its
"overweight" call on the banking sector to reflect the reduced risk
premiums after the political overhang was removed.
"We think the confluence of factors such as inexpensive valuations,
heavyweight sector and ample liquidity in the system mean that the
sector should not be ignored especially for funds benchmarked to
domestic indices," it said in its research note today.
It said the result of yesterday's general election had eased the risk of
cancellations and changes to the terms of big-ticket projects and helped
remove the uncertainties that may have impacted investment spending
decisions by businesses.
"With the overhang removed, we expect loan demand from the business
segment to pick up and this would be positive for the banks," it said. -- BERNAMA