KUALA LUMPUR: CIMB Equities Research holds its Overweight approach banks because of the normal recuperation in Net Benefit Development in FY17, undemanding valuations, and an appealing profit yield of 4.3% in 2017.
It said on Tuesday its top pick is RHB Bank.
Be that as it may, the drawback dangers for the segment are a spike in hindered credits and further decay in advance development.
CIMB Research brought up banks posted second continuous quarter of on-year net Benefit Development (of 3% on-year) in 4Q16 in spite of a hop in credit costs. Underperformance proportion fell for the fifth back to back quarter to 12.5% in 4Q16.
"Banks anticipate that advance development will be steady and gross disabled advance proportion to rise imperceptibly in 2017. We anticipate center Net Benefit development of 13.3% in 2017 (versus a drop of 3% in 2016).
Hold Overweight on expected recuperation in 2017 net benefit development," it said.
Current stock updates:
Name Last Chg %
KLCI 1722.300 +0.380 +0.02
NASDAQ 5875.780 +14.060 +0.24
NOBLE 0.210 +0.005 +2.44
You could check the latest updates here for profitable trading:
Share Investment Tips, Share Trading Signals, Stock Advisory, Stock Trading Picks, Stock Tips, Intraday Stock Picks, Stock Signals
This post first appeared on Bursa Malaysian Intraday Stock Picks | KLSE Trading Signals | Intraday Recommendation, please read the originial post: here