PETALING JAYA: The ongoing tensions in the Middle East are having limited impact on the earnings growth of local shipping and aviation companies operating in the transportation sector.
According to TA Research, there is no immediate threat to sector earnings unless the tit-for-tat actions escalate into a full-blown war between Israel and Iran, and their respective allies.
“With the limited exposure, we continue to believe sector earnings will grow by 68%, thanks to the robust trade and overwhelming demand for air travel, which are spurred by the state of the US and China economies,” the research house said, citing the International Monetary Fund’s growth projections of 2.7% for the US economy and 4.6% for China in 2024.
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