‘Plan­ta­tion and O&G sec­tors ex­pected to re­bound’

New Straits Times - - Business - Lid­i­ana Rosli

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.

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