Selected small- to mid-cap stocks should benefit from weakening of ringgit, says CGS-CIMB

TheEdge Wed, Sep 07, 2022 08:09am - 1 year View Original


KUALA LUMPUR (Sept 7): CGS-CIMB Research said that selected small- to mid-cap stocks should benefit from recent weakening of the ringgit against the US dollar.

In a note on Tuesday (Sept 6), the research house said it was also positive on recent easing of global shipping constraints, as it expects that to drive higher export volumes and better economies of scale.

“We have identified several key beneficiaries of the current operating environment, i.e. Kawan Food Bhd, Power Root Bhd, Karex Bhd, Lee Swee Kiat Group Bhd and Thong Guan Industries Bhd,” it said.

However, the research house opined that technology, rubber glove and palm oil-related companies are not key beneficiaries of the current environment, due to the overall weak global supply dynamics of each sector.

Read also:
Ringgit drops to lowest level since Asian financial crisis

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