Maybank Points Out 5 Essential Methods for Investment during the Recovery From Lockdown
Maybank Points Out 5 Essential Methods for Investment during the Recovery From Lockdown.
Maybank Points Out 5 Essential Methods for Investment during the Recovery From Lockdown.
5 มิ.ย. 2563

In the INVEST ASEAN 2020: Capitalising On The Recovery From Lockdowns conference held by Maybank Kim Eng on June 4, 2020, the analysts from Maybank’s Singapore, Malaysia and Indonesia pointed out investment strategies for investors amid the gradual lockdown easing across the region.
 
The majority of Maybank’s analysts projected the recovery in the equity market to be a U shape, while the movement for the market in the short-term recovery would be seeing some gains in response to more easing before slowing down, depending on the prolonged virus outbreak.
 
Analysts pointed out five methods for picking stocks for investment.
1) Strong Management
2) High Quality Balance Sheets
3) Structurally Growing Market
4) Diversification Geographically and by Earnings
5) Dividend Yield
 
Out of the five methods, the analysts were focusing on stocks with good dividend yield amid the current situation that the policy rates were continuously cut by central banks to maintain economic stability. Dividend play would be a better choice, compared to some countries that the interest rates were near zero or even contracted.
However, the analysts warned of good dividend stocks with 7%-10% yield, but were sensitive to the situation.
 
Maybank’s Singapore stated that the banking sector in Singapore was in good shape due to the government’s stimulus plan and loan measures. The analyst expected NPL to rise, but still not at the same level of the Global Financial Crisis in 2008 that hit directly to the banking sector. Meanwhile, the coronavirus outbreak that caused recession mainly hit the hotel and tourism sectors.
 
In addition, Maybank’s analysts also pointed out the essential of the arrival of 5G, which every country would need to implement sooner or later. The implementation should begin by this year, so that the 5G technology could be used by next year. Stocks benefitting from the 5G arrival would be telecommunication stocks and those who initiate the installation.