“This leads us to take the view that in a market downturn phase, the best sectors to take shelter in are utilities (Gas Malaysia Bhd, Malakoff Corp Bhd and Tenaga Nasional Bhd), telecoms (Telekom Malaysia Bhd), healthcare (IHH Healthcare Bhd) and consumer (QL Resources Bhd, MR DIY Group Bhd and Genting Malaysia Bhd),” say the analysts in their June 17 report. Bank Negara Malaysia has embarked on interest rate hikes to ensure the stability of the country’s monetary system. The sector that will benefit the most from a higher interest rate environment is banking. They forecast that Alliance Bank Malaysia Bhd and Bank Islam Malaysia Bhd will be the biggest beneficiaries of a rising OPR, while Affin Bank Bhd and Public Bank Bhd will benefit the least among the banks under their coverage. “Typically, banks gain in the short term from a rising interest rate environment.

Source: The Edge Markets July 11, 2022 18:00 UTC