Significant stock recoveries likely in 2Q23

TheStar Mon, Aug 07, 2023 12:00am - 2 years View Original


PETALING JAYA: The second quarter of 2023 (2Q23) reporting season is likely to deliver a noticeable host of earnings winners, in part due to a meaningful rebound from the unusually disappointing 1Q23, says UOB Kay Hian (UOBKH) Research.

The brokerage also expects significant stock recoveries and outperformances by the key 2Q23 earnings winners.

“We expect more than 25% of our coverage universe to deliver appreciably stronger earnings quarter-on-quarter (q-o-q) in 2Q23, with the gaming and consumer sectors showing a prominent recovery,” UOBKH Research said in a recent note to clients.

“Recall the many prominent earnings disappointments in the 1Q23 results season, prompted us to cut our 2023 earnings forecast for the FBM KLCI by a whopping 5%.

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