Alliance Research maintains Overweight on Banking sector

Alliance Research maintains Overweight on Banking sector
Business & Markets 2013
Written by theedgemalaysia.com
Monday, 03 June 2013 09:28


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KUALA LUMPUR (June 3): Alliance Research has maintained Overweight on the domestic banking sector and said despite lending indicators recovered in April, 2Q could be a relatively quiet quarter as its channel check showed that lending activities in the month of May remain slow.

In a note Monday, Alliance Research vice president of equity Cheah King Yoong said he was maintaining his 2013 loan growth target at 7-9% for now, pending on Alliance Research’s forthcoming company visits to banks under its coverage, although he acknowledged upside potential to the research house’s loan growth target.

“We have recently upgraded our recommendation for the domestic banking sector to Overweight in view of the dissipating political uncertainties,” he said.

“Despite its disappointing 1QFY13 results, RHB Cap remains our top pick of the banking sector since we deem its valuation to be attractive.

“We also take this opportunity to upgrade Affin to BUY, since its valuation has become attractive in view of recent sell down,” said Cheah.