Corporate earnings to rebound further in 2H23

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The country’s economy is set to retain its growth trajectory for the rest of the year.

At the same time, the country’s economy is set to retain its growth trajectory for the rest of the year with continuous support from strong households and intact fundamentals, despite various external variables influencing growth in 1H23.

Meanwhile, in its review of the first quarter of 2023 , MIDF Research noted that there was a divergence in net change to forward earnings between heavyweights and lesser-cap stocks. As of end-May 2023, the year-to-date price return of the FBM KLCI stood at minus 7.2%. In contrast, the mid-cap FBM70 index registered a y-t-d return of 4.9%.

MIDF Research said the heavyweights were bogged down mainly by the price underperformance of financial services counters, which was impacted by banking turmoil in the United States and Europe, as well as commodity-related industrial products and services and plantation stocks amid lower commodity product prices.

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Corporate earnings to rebound further in 2H23KUALA LUMPUR: Malaysia’s corporate earnings are set to continue recovering and registering further growth in the second half of 2023 (2H 2023), backed by positive economic print projected for the period.
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