‘Plantation and O&G sectors expected to rebound’
RHB Research Institute Sdn Bhd expects previous sectoral darlings — namely oil and gas (O&G) and plantation — which had been hit hard last year, to rebound this year.
Its director and Malaysia research head Alexander Chia said this was because both segments would be coming from a low base.
“For this year, we are overweight on banking, construction, basic material, aviation, O&G and plantation, while being neutral on the rest.
“We expect the rebound this year to primarily come from the plantation and O&G sector. As you know, plantations suffered from a shortfall because of weather-related issues last year and this year, we should see a normalisation of production, so the plantation sector should be reporting better earnings this year.”
The research house expects a nine per cent increase in earning per share (EPS) for O&G companies this year. This is from a low base last year, where we have -2.8 per cent EPS contraction,” added Chia.