PETALING JAYA: Corporate earnings for the final quarter of 2022 (4Q22) are expected to remain positive, underpinned by festive spending ahead of Christmas and Chinese New Year, more tourist arrivals as well as higher bank earnings from rate hikes, says CGS-CIMB Research.
In a review note, released yesterday on overall corporate third quarter earnings on Bursa Malaysia, the research house reported that out of the 136 companies it covered, 38% of them posted earnings that exceeded its expectations, up from the 33% for the quarter ended June 30.
However, the number of companies that missed CGS-CIMB Research’s forecast also edged up to 26% in 3Q22 compared with 24% for the second quarter of the year, which was in line with its “flattish” call on 3Q earnings.
The research house said: “We had foreseen the waning of the boost coming from high commodity prices, such as crude palm oil, and the tapering off of high consumer spending due to pent-up demand in the second quarter, which was accelerated by Hari Raya and the RM10,000 one-off Employees’ Provident Fund special withdrawal amounting to RM44bil in April 2022.”
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