Bloomberg reports: Malaysia’s corporate earnings are “decelerating rapidly” and will worsen this year, reflecting the global recession that will erode profits at plantations, banks and transport operators, RHB Research Institute Sdn said.
“Earnings are falling off the cliff and will likely worsen over the next two to three quarters,” RHB said in a report today. “Malaysian companies have yet to feel the full-blown effect” of economic decline and “the market is poised for a downshift.”
RHB Research expects corporate earnings to shrink 14 percent this year, more than the 8.7 percent contraction predicted two months ago, it said. Earnings shrank 2.8 percent last year after expanding 22 percent in 2007, RHB said. The benchmark stock index risks “breaking” the 801 level and may fall to 750 in the coming months, it said.
Sounds pretty bleak.