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!

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!!