Bank Negara does not need to raise rates as much as the US or Europe because inflation has been rather tame in Malaysia. Malaysia didn't print money also.
Based on data from Bloomberg Terminal and Department of Statistics Malaysia DOSM US inflation rate MoM is 7.5% WIPR <GO> 7 - 8 rate hikes Malaysia inflation rate MoM is 3.2% (lower than previous months) No rate hikes ATM
Watch Central Bank of Indonesia first then we talk about real interest rates or benchmark rates in Malaysia.
Aeon Credit - this stock is 100% a vehicle to play the interest rate hike cycle. Better than traditional banks. Consumers rotate from banks to personal consumer loan companies in search for better deals. The consensus right now is no hikes from BNM.
Bank Negara Malaysia will continue gauging the “appropriate degree of monetary policy accommodation to make sure this economic recovery is much more durable,” Governor Nor Shamsiah Mohd Yunus said in a recorded interview with Haslinda Amin, part of Bloomberg Live’s Asean Business Summit on Wednesday. She added “we will continually assess” policy normalization when asked if it could happen in the second half of the year, as analysts predict, and that BNM will ensure inflation expectations remain anchored.
With the economy opening up, Aeon Credit should benefit. It is well managed. Also, should the lowest pay be increased to RM 1,500 per month, its business revenue should benefit from this too. We can expect its dividends to return back to its previous years' levels.
Aeon Credit Is a neutral with a mid term target of RM16.00 Future catalysts include the eventual rate hikes and any signalling by BNM governor. Ringgit interest rate swaps continue to move to the upside with no signs of slowing down
Those granted with the licence will have to maintain a minimum amount of RM100 million in capital funds in the foundational phase, which will be further raised to RM300 million by the third year of operations.
You guys will seriously regret selling because of the news. High dividend payout with conservative growth. I did an extensive DCF model for Aeon Credit and my conservative price target is RM17.00. Aeon Credit with the digital banking license is now a mix of technology, fintech and financial services. Can be listed under banks or even tech stocks.
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....