RCE Capital Potentially Eligible for Shariah Status in November 2021: Maybank Investment Bank Research

Maybank Investment Bank Research (MIBR) anticipates Malaysian-based RCE Capital (RCE) is likely to be eligible for Shariah status by November 2021, according to a report released on the 7th of February 2021.

According to MIBR, there are currently only three Shariah-compliant financial services companies in Malaysia (BIMB Holdings, Bursa Malaysia and Syarikat Takaful Malaysia Keluarga), with RCE’s closest-listed peers AEON Credit Service and MBSB Bank classified as non-Shariah compliant. If RCE obtains Shariah status, MIBR opines that the company will attract interest from a larger group of fund managers who are allocating more of their assets in Shariah-compliant equities, given RCE’s relatively strong earnings outlook amid the ongoing COVID-19 pandemic.

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