Domestic Sectors Hold Resilient Amid Oil Volatility - Maybank IB
KUALA LUMPUR, March 17 (Bernama) -- Malaysia’s domestic sectors are expected to remain resilient despite near-term market jitters, Maybank Investment Bank Bhd (Maybank IB) said.
Rising oil prices and safe-haven demand, driven by geopolitical tensions in West Asia, have pushed global markets into a defensive stance, it added.
The investment bank said investors could explore trading opportunities linked to commodity strength.
“At the same time, defensive positioning through dividend yield plays, such as banks and real estate investment trusts (REITs), is advisable,” it said in a research note.
The bank also noted that higher oil prices could raise construction costs through increased diesel and building material prices.
It said cement may see moderate pressure from higher thermal coal costs, steel prices are likely to remain stable amid weak global demand, and bitumen prices used in road construction may be affected due to their link to oil prices.
“Overall, the sector faces moderate cost risks but limited downside to earnings forecasts under current conditions,” it said.
Meanwhile, the ongoing conflict has overshadowed the seasonal decline in the Malaysian Palm Oil Board’s stockpile data released last week, while crude oil prices remained highly volatile, briefly touching US$119 per barrel, sparking renewed interest in the sector.
“We believe sustained high crude oil prices may accelerate the implementation of B50 biodiesel to reduce import reliance and save on foreign exchange, supporting crude palm oil demand and prices. We maintain a ‘Neutral’ call on planters,” it said.
Maybank IB highlighted that dividend yield opportunities remain attractive in the current environment.
During the recent fourth-quarter results season for financial year 2025, it noted that several companies raised dividends, with some announcing higher payouts.
“Banks were the main stocks in focus for higher dividends, along with fixed broadband telco players. REITs maintained consistent dividend payouts. These sectors collectively offer dividend yields of five to six per cent.
“In January and February 2026, banking counters staged a strong advance and maintained a solid uptrend, helping the KLCI achieve a multi-year breakout,” it added.
-- BERNAMA