In 2QFY2024, downgrades to earnings per share (EPS) estimates rose to 25% of Maybank’s overall coverage, up from 17% in the previous quarter. The downgrades were mostly concentrated on REITs and tech manufacturing, the analyst notes.
The outsized US Federal Reserve (Fed) rate cut of 50 bps on Sept 18 should continue to support the market’s earnings for 2HFY2024, says Maybank Securities analyst Thilan Wickramasinghe.
“Widening dividend yields, improving margins and stronger capital markets and transaction activities could draw a line under REIT [and] tech manufacturing downgrades,” he writes in his Sept 24 report.
