A research head said: “In this (first) quarter, there doesn’t seem to be any winners, just losers. It’s just a matter of whether a company is losing in a big way or small.”
However, he said it was premature to tell whether companies across the board would face a downtrend in their earnings, and added that indicators to these companies’ performances would be better reflected in the current quarter.
“It is still too early to tell how significant the impact of the uncertainties towards companies’ earnings are. But, if the (first) quarter shows weak performances by the companies, it is likely that the downtrend will continue, in which the following quarter could be weaker," he told The Edge Financial Daily.
Echoing his sentiments was MIMB Investment Bank Bhd research head Pong Teng Siew, who said: “In the following quarter, it will be tough to maintain uptrend performances, especially manufacturers, as they will have to be careful with buffering goods prices without narrowing their margins.”
He added that companies’ earnings in transportation sector, such as Malaysian Airline System Bhd (MAS) and AirAsia Bhd, might be adversely impacted, due to their dependence on fuel, while shipping companies, such as MISC Bhd, might suffer from fallen shipping rates.
Nevertheless, analysts believed the bigger losers in 1Q would be companies in the property and construction sectors, given the high raw materials and building costs.
