Malaysia - Market Strategy

[winston]

STRATEGY – MALAYSIA
Alpha Picks: Embracing The High Beta Picks

Our Dec 21 portfolio outperformed the FBMKLCI (+13.4% vs +3.5%), mainly driven by
our SELL call on Sapura Energy and inclusion of VS Industry in our BUY picks.

Alpha Picks for Jan 22: CIMB, GENM, Mr DIY, MyEG, Sentral REIT and VSI.

We remove Sapura Energy and add BUY-rated Mr DIY and Sentral REIT.

Most of our Alpha Picks are high beta stocks that would gain when investors shrug off concerns over the Omicron variant and refocus on the economic reopening.

Source: UOBKH

https://research.uobkayhian.com/content ... b4b43845c3

[winston]

STRATEGY – MALAYSIA
Open Season: Border Reopening Plays

Malaysia’s border reopening starting from April is instrumental in lifting market
sentiment, and we continue to expect most economic reopening beneficiaries to
deliver trading gains despite the gravity pull of the US monetary contractionary
policy.

Our key border reopening picks are the tourism-dependent Malaysia Airports
(MAHB) and Genting Malaysia (GENM), followed by Magnum, MYEG, IHH, Heineken
and Sunway REIT.

Source: UOBKH

https://research.uobkayhian.com/content ... f787bc686a

[behappyalways]

大马经济重获新生 哪个板块能绽放异彩？ | 八点最热报 06/04/2022
https://m.youtube.com/watch?v=VSSXIWq9MPc



外围因素将拖累复苏脚步 大马经济增长受限? | 八点最热报 06/04/2022
https://m.youtube.com/watch?v=KHZbP3xecWM

[winston]

World’s largest sovereign wealth fund raises ownership in BCorp, Genting Malaysia, PetChem; cuts Bursa, Top Glove, Serba Dinamik

by Chong Jin Hun

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... tchem-cuts

[behappyalways]

投资者套利马股先升后降 外资撤出回流美国？ | 八点最热报 06/05/2022
https://m.youtube.com/watch?v=JMQDQEsAfw8

[winston]

The biggest losers and gainers on Bursa Malaysia in 1H

by Syafiqah Salim & Justin Lim

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... alaysia-1h

[winston]

Malaysia Strategy
Potential impact from 25bp OPR hike

BMM today raised its overnight policy rate (OPR) by 25bp to 2.25%. We project another 25bp rate hike in Sep, and a further 50bp hike in 2023F.

The banking sector is a winner from rate hikes, while potential losers are the
property, auto and consumer sectors.

We estimate a 25bp hike in OPR could raise our KLCI earnings estimates by
1%, and KLCI target by 16 points due to better earnings from banks.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... C0354A9EAF

[winston]

STRATEGY – MALAYSIA
2H22 Outlook: Positioning For Breaks In The Storm

While Malaysian equities will still be swayed in 2H22 by chunky policy rate hikes and
quantitative tightening in the US, the FBMKLCI already trades at our assessed trough
valuation.

While global inflationary concerns should ebb by 4Q22, the Russia-Ukraine
war remains a key risk, and we await clearer signs of market capitulation to turn more
aggressive.

Our strategy is to remain defensive but the depressed market warrants
taking some trading bets and longer-term positioning into growth stocks.

Source: UOBKH

https://research.uobkayhian.com/content ... e6d87f09b8

[winston]

Malaysia Strategy
A leap in the dark

We expect the market to remain weak with downside risks in 3Q22F, as it attempts to price in concerns over global monetary policy tightening

Market could bottom and rebound in late-4Q, with upside likely from a more stable political system, market-friendly budget and return of foreign workers.

We advise investors to take shelter in stocks that offer defensive earnings, high dividend yields, and benefit from tourism recovery and rising rates.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... E5E470D4E4

[winston]

Malaysia Strategy
Key nuggets from our Corporate Day

We hosted 320 investors at our 2nd Malaysia Virtual Corporate Day.
Malaysia’s GDP growth to moderate to 4.1% in 2023F, from 5.2% in 2022F
On GE15, the current most likely potential scenario is Barisan Nasional gains
majority seats in West Malaysia and forms the government.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 479804222A