Malaysia GDP growth forecast to moderate in Q3

An average of 4.8% yoy growth is likely for the full-year.

OCBC Treasury Research noted:

KLCI was dragged into its 5-week low and ended just above the 1640 mark on Friday amidst persistent profit-taking seen in the market.

Trades are likely to be somewhat lackluster this week given the holiday disruptions but we would not rule out buying interests to prop out again if the bourse were to continue correcting towards the 1630 mark.

September trade and IPI data came in better than expected last week and are likely to signal a decent Q3 GDP growth data this Friday.

Note that we forecast GDP growth to moderate to 4.2% yoy in Q3, but still on course to reach an average of 4.8% yoy growth for the full-year.