• Commodities’ drag on 3Q earnings

The third quarter of this year has been a disappointing period for Corporate Malaysia as results came in below expectations and analysts believing that the profit trend would unlikely get better anytime soon.

Analysts said the lacklustre corporate third quarter among Bursa Malaysia-listed companies would likely extend into the last three months of the year as downside risks remain elevated.

Up to the end of November 2018, results of all the 30 largest entities on the Malaysian stock exchange showed that decliners trumped advancers in terms of changes in bottom line.

In the third quarter, several key sectors such as property, plantations and logistics have underperformed due to factors such as slowing economic growth, high operating cost environment, volatile commodity prices and looming external uncertainties.

In fact, commodities – specifically oil and gas, crude palm oil, timber and rubber – have had its negative effects on Corporate Malaysia: