Daily Market Report (22 Oct 2019)
- Debates whether banking stocks which had been on a mild free fall are ripe for pickings continue. Whilst we were also guilty of recommending the banks earlier, we did not envisage the severity of the sell-down particularly from the foreign funds.
- Most of the big cap banks have had fallen by between 10-22% YTD which was unheard of before. Interestingly, only RHB and BIMB registered positive returns for the year possibly due to their lower foreign shareholding.
- Reflecting the weak banking stocks, the Bursa Malaysia Finance Index declined 12% YTD. Looking at the prevailing scenario, maybe one should start to look at some banking stocks for such opportunity may not come too often.
- Of the lot, Maybank, Public Bank, CIMB, Alliance and Hong Leong Bank seems a decent bet.
