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CIMB Research keeps OW on banks despite shareholding cap woes
by hlk Wed 20 Jul 2011, 13:10
KUALA LUMPUR: CIMB Equities Research said although news of a possible shareholding cap for Indonesian banks is a negative surprise, it does not affect its OVERWEIGHT stance on the sector.
It said on Wednesday, July 20 that the impact would be minimal at about 3%-4% of earnings in the case of Maybank assuming a paring down of its BII stake from 97% to 50%.
“Our investment theme of stronger growth overseas is intact though the benefits would be diluted by a shareholding cap.
“We remain positive on the prospects for banks as earnings will be driven by opportunities presented by ETP projects, improving asset quality, robust capital markets and growth prospects for overseas operations,” it said.
CIMB Research said these are potential re-rating catalysts, along with M&A newsflow. It is keeping Maybank as its top pick.
It said on Wednesday, July 20 that the impact would be minimal at about 3%-4% of earnings in the case of Maybank assuming a paring down of its BII stake from 97% to 50%.
“Our investment theme of stronger growth overseas is intact though the benefits would be diluted by a shareholding cap.
“We remain positive on the prospects for banks as earnings will be driven by opportunities presented by ETP projects, improving asset quality, robust capital markets and growth prospects for overseas operations,” it said.
CIMB Research said these are potential re-rating catalysts, along with M&A newsflow. It is keeping Maybank as its top pick.
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