An MSCI gauge of Southeast Asian, or Asean, equities fell less than 2% this week and rose to an 18-month high relative to the Asia benchmark, which slumped almost 5%.
“Asean is now less vulnerable than in the past as current account balances have improved and valuations on equities, bonds and currencies are less demanding,” UBS Group AG strategists including Niall MacLeod wrote in a note Thursday. “Markets are in a much better position relative to 2013.”
There is another article about RCE on The Edge Saturday. There are a few key points: 1. Interviewed analysts believed loan loss provisioning due to many civil servants leaving their jobs may have peaked. In fact, provision for the latest quarter has come down. 2. Maybank expects RCE earnings to normalize because 2Q earnings were boosted by early settlement income as customers wanting to lock in lower rates before rates move higher. 3. RHB pointed out that given most of RCE’s funding is on a fixed rate basis, the impact of higher funding rate affects only new sukuk issuance.
RCE has a dividend policy of 20% to 40% payout. Despite the increasing payout ratio in the last few years, and in fact payout exceeded 40% in FY22, it has accumulated too much equity capital given the business has been growing quite slowly. Take for example, over a period of 4.5 years from end Mar 2018 to end Sep 2022, shareholders’ equity has increased 76% from RM519m to RM912m. However total financing receivables only increased 21% from RM1.5b+ to RM1.8b+. This is probably to motivation to return underutilized shareholder’s equity. Maybe this is the request from its major shareholder. Still the management deserves praise for being responsible to shareholders.
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....