Malaysia - Market Strategy

[behappyalways]

The stock market is so bullish that it reaches 1,600 points. Is the "May Curse" out of order?

马股牛气冲天冲上1600点 “5月魔咒”失灵了？ | 八点最热报 10/05/2024

https://m.youtube.com/watch?v=ycJLniXDiGo

[winston]

Is the market rally sustainable?

By RISEN JAYASEELAN

10.5% gain year-to-date and 16.4% over the last 12 months.

Net foreign fund inflows in recent weeks.

There is the low base element — our market has been in the doldrums for nearly a decade.

(GLICs) were instructed by the government to focus more on domestic investments rather than taking their money out of the country.

EPF's new investment annual allocation has increased to above 70% for the domestic market. It stood at 64:36 at the end of 2022.

Still untapped investment opportunities within Malaysia, including sectors like DCs and industrial logistics.

For there to be a sustained rise in our market, earnings of listed companies need to continue to improve, following on from the impressive first quarter of the year (1Q24).

Source: The Star

https://www.thestar.com.my/business/bus ... ustainable

[winston]

2H24 Strategy – Building Up To A Crescendo

Expect a steadily rising FBMKLCI beyond the current consolidation period, as dovish sentiment on US interest rates amplifies the effects of robust domestic liquidity.

We recently raised our end-24 FBMKLCI target to 1,735, and advocate a risk-on strategy that capitalises on particularly the mid-cap beneficiaries of compelling investmentmthemes – technology, blockchain, Iskandar 2.0 and mega infrastructure, China’s recovery, industrial commodities, and the Green Agenda.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

Alpha Picks: Opting For More Adventurous Choices

Our Alpha Picks again beat the FBMKLCI in Jun 24 (+5.7% vs -0.4%). While we correctly guessed that FBMKLCI was entering a lull period in June, we decided to adopt more adventurous Alpha Picks for July.

July picks: Bursa, Ekovest, Gamuda, Lagenda Mah Sing, MYEG, Pekat, PMetal, RGB and VSI. New inclusions are Ekovest and Pekat, which replace Bermaz Auto and Genting Malaysia.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

RHB IB keeps 'overweight' calls on property, construction, tech, healthcare, oil and gas, utilities sectors

By Ishra Kamiso

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/718002

[winston]

JPMorgan upgrades Malaysia amid economic reforms, renewed investor confidence, data-centred investments — interview

By Isabelle Francis

Several key factors, including policy reforms, data-centred investments, and a significant infrastructure buildout.

Malaysia started with around (US$)150 (million) to (US$)160 million outflows in the first quarter, but saw a return of (US$)200 million in the second quarter.

The ringgit has strengthen more than 2% against the US dollar from its over two-decade low in February.

Interest in sectors like chip packaging in Penang, data centres, electric vehicles (EVs), green energy and solar projects.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/718568

[winston]

Malaysia Strategy Monthly Wrap for Jul 2024

The KLCI rose 2.2% mom to close Jul 24 at 1,626 pts with strong YTD gains of 11.7% as Jul 24 turned out to be a good month for ASEAN markets.

Foreign investors reversed their positions from net selling in Jun 24 to a net buy position in Jul 24, recording a YTD cumulative net inflow of RM0.5bn.

The construction sector saw the highest gains for the second straight month in Jul 24 and continued to lead YTD gains, ahead of utilities and property.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... AD7DD1EA99

[winston]

Malaysia: Sustaining Momentum with Less Obvious Stocks

Malaysia remains in risk-on mode

7 Thematics to gird our overweight on Malaysia MIBG’s 2H2024 Malaysian strategy report (dated 15 July) lists seven thematics, which influences our latest rebalancing for the momentum portfolio (Fig 16).

Tambun Indah is riding on the “The Three Sisters” (Johor/ Penang/ Sarawak) theme in Penang.

MYEG is expected to be one of the key beneficiaries of ever-improving 50 years of ties between Malaysia and China, with its blockchainbased ZTrade platform offering favourable exposure to growing trade activity.

Hartalega is our top pick in the glove sector which stands poised to recover from a nearly 3-year long downturn, thanks to stronger pricing power and narrowing price gap between Malaysia and China glove makers.

Last but not least, Aurelius is well-positioned in the EMS space, with its capacity ramp on track to complete by end-2024 to meet rising trends for electronic device demand and local E&E FDIs.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/395551.pdf

[winston]

STRATEGY – MALAYSIA Addressing The Triple Concerns

The FBMKLCI’s shocking 4.6% plunge yesterday provides a compelling buying opportunity in the intermediate term, although the nearer-term situation remains fluid.

We attribute the panic selldown to the unwinding of the yen carry trade, deep escalation of the Middle East conflict and fears of a US recession.

A major uncertain factor is whether the Middle East conflict could blow up. As a fuller market recovery could take weeks to recover, we provide a sense of trough valuations.

Source: UOBKH

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://research.uobkayhian.com/content_download.jsp?id=80243&h=412e1e24768da7e75c66a008af4ffe97&utm_medium=email&_hsenc=p2ANqtz-8gtqv37KF1z2LJ5SUwjHyAmtAH3o0PbauYKg-TBC0HDj_Jvt8e3Jt2m51V6juc9cakjn1d_UpoKnkuu-Xr6RNx-nknwg&_hsmi=318838248&utm_content=318838248&utm_source=hs_email

[winston]

Counting our eggs durians before they hatch fall

Consider AEON, RCE, MBM, BIMB & LAGENDA

On 16 Aug 2024, details of the civil service salary hike that will take effect on 1 Dec 2024 will be revealed.

Referencing back to the last 2 civil service salary hikes of 2007 and 2012, we gather that there will be many beneficiaries.

Potential beneficiaries under our coverage are AEON Co. (M), RCE Capital, MBM Resources and Bank Islam Malaysia.

Potential beneficiaries out of our coverage are MBSB, AEON Credit Service (M), DRB-Hicom and Lagenda Properties.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/397681.pdf