RHB cites the US National Oceanic Atmospheric Association, which has issued an El Nino advisory, predicting it to intensify to a moderate or strong level. In terms of strength, the probability of a strong El Nino peaks at 88% for the November 2026-January 2027 period.
With its share price correcting to $3.17 on June 19, down from a May 15 high of $3.90, and the confirmation of El Nino, RHB has turned positive on First Resources, upgrading the counter to “buy” from “neutral” at an unchanged target of $3.70 in a June 22 report.
El Nino is a naturally occurring climate pattern characterised by the warming of ocean surface temperatures in the central and eastern tropical Pacific. Southeast Asia typically experiences hotter and drier weather due to El Nino.
