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2 comment(s). Last comment by calvintaneng 2021-11-12 13:06
Posted by calvintaneng > 2021-11-12 13:06 | Report Abuse
And windfall tax is the final straw that break the camel's (bank's) back finally
GET OUT!!
No result.
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TA Sector Research
Weekly Strategy - External Uncertainties Could Sustain Downside Pressure
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CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
calvintaneng
56,242 posts
Posted by calvintaneng > 2021-11-12 13:01 | Report Abuse
Definitely wrong to overweight banks on these reasons
1) Banks have been told to give loan moratorium to both Real Estate and car payments for more than 6 months
Lots of these will turn into delinquent loans later and Banks NPL (Non performing loans will go up)
2) 70% of SMEs already scaled down or close shop during the Covid 19 lock down. This will cause more NPL and less borrowing from Banks. With less loans Banks bottom line will erode further
3) Govt also tell Banks to waive interest charges for B40. This will bleed more cash
4) Banks also face very low interest spread at 1.75% interest rate. So earnings will shrink
5) In Iskandar due to over building Rm30 Billions worth of High Rise Condos might turn into Ghost Tower with drastic change in MM2H. This will blow a Huge Hole in Banks capital when all turned into subprime non performing loads
Instead of overweight should down grade banks to UNDERWEIGHT
Sell before Bank share prices collapse!