Malaysia's Corporate Earnings Growth Likely to Slow in 2H

Dow Jones
07/03

0208 GMT - Malaysia's corporate earnings growth is expected to slow in 2H as rising costs and weaker sales weigh on profitability, Public Investment Bank analyst Eltricia Foong and team say in a note. While lasting peace in the Middle east remains uncertain, even if the conflict ends, oil and gas producers could take at least six months to fully restore supplies, they say. They adopt a more conservative stance on bank earnings, citing concerns that escalating cost pressures could weaken consumer and business confidence and lead to a deterioration in asset quality. Public IB cuts its end-2026 target for Malaysia's benchmark Kuala Lumpur Composite Index to 1680 from 1730 to factor in lower earnings growth estimates. CIMB, Tenaga Nasional, IHH Healthcare and Gamuda are among its top picks. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

July 02, 2026 22:08 ET (02:08 GMT)

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