Malaysia - Market Strategy

[winston]

STRATEGY – MALAYSIA
Alpha Picks: Some Opportunities Despite Risk-Off

Our August Alpha Picks were largely in line with the FBMKLCI (0.3% vs 1.3%).

We
turn cautious ahead of the US monetary tightening in September.

Our September picks are Alliance Bank, Genting Malaysia (GENM), MyEG Services (MyEG), Press Metal, Sunway REIT (SREIT), VS Industry and Yinson.

We remove Magnum and Swift Logistics, and include Yinson.

Source: UOBKH

https://research.uobkayhian.com/content ... 20862758b2

[winston]

Politics & Strategy
GE15: Malaysia goes to the poll

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/283921.pdf

[behappyalways]

投资者蠢蠢欲动要入场 大马股市哪些板块值得关注？ | 八点最热报 16/10/2022
https://m.youtube.com/watch?v=qG9WNYB7bYE

[winston]

Alpha Picks: Positioning For A More Risk-On Sentiment

Our Alpha Picks underperformed the FBMKLCI (+0.6% vs +4.7%) in October.

Our November Alpha Picks continue to position for an anticipated risk-on investment
sentiment as we head towards year end, and we maintain our bets on beneficiaries of
catalytic events such as the economic reopening and MRT3 contract awards.

Our November line-up: Gamuda, Genting Malaysia (GENM), Malaysia Airports (MAHB),
Maybank (replacing Alliance Bank), MyEG Services (MyEG), VS Industry and Yinson.

Source: UOBKH

https://research.uobkayhian.com/content ... 184e668243

[behappyalways]

Islamic party wins in Malaysia lead to alcohol, gambling stocks plunge
https://www.theedgesingapore.com/news/m ... cks-plunge

[winston]

Kenanga Research urges investors to seek refuge in domestically-driven sectors

Domestically-driven sectors including banks, telcos, automakers/distributors, mid-market retailers and construction, amidst rising external headwinds.

Source: The Star

https://www.thestar.com.my/business/bus ... en-sectors

[winston]

Bursa Malaysia's biggest movers in 2022

by Adam Aziz

Source: theedgemarkets.com

While the FBM KLCI ended the year with a decline of 3.12% to date, several indices beat the benchmark including the Bursa Malaysia Finance Index (6.37%), the Energy Index (11.11%) and the Plantation Index (6.37%).

Meanwhile the obvious losers include the Technology Index (-34.43%) tracking the global tech stocks rout while the Healthcare Index (-24.11%) was dragged down by the sell-off on glove stocks post-pandemic,

https://www.theedgemarkets.com/node/650095

[winston]

STRATEGY – MALAYSIA
Preparations For Winter

2023 should be a warmer and less turbulent year for Malaysian equities, although
sentiment would likely be frigid for most of 1H23 before turning positive around midyear, ahead of the prospects of a global economic recovery towards end-23.

Our assessment assumes the continuity of Malaysia’s unity government.

Appealing investment themes include economic reopening, trade diversion and the green agenda.

Focus on defensive picks and China reopening beneficiaries.

For the first theme, the China border reopening subtheme will be particularly catalytic to the tourism-related aviation and gaming sectors.

The second theme benefits mainly the electrical and electronics (E&E) sector, while the third theme particularly benefit the hydro-electric powered smelters and supporting industries of electric vehicle (EV) production.

Other compelling themes include My EG Services’ blockchain initiative and rising ROIs for O&G offshore asset (floating production storage and offloading (FPSO) and jackup rig) owners.

ACTION
Recalibrating our top picks to be more defensive: Genting Malaysia (GENM), Greatech
Technology, Malaysia Airports Holdings (MAHB), My EG Services, Press Metal Aluminium
Holdings, Sunway REIT, TIME dotCom (TIME), and Yinson Holdings.

Source: UOBKH

https://research.uobkayhian.com/content ... 11a2aff30c

[winston]

Sectors facing headwinds

by Izzul Ikram, Syafiqah Salim, Chester Tay and Lam Jian Wyn

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/650342

[winston]

STRATEGY – MALAYSIA
China Reopening Beneficiaries

China’s economic and border reopening will enhance earnings for many Malaysian
companies and is uplifting for Malaysia’s macro outlook (eg supportive of the ringgit).

The two key clusters of beneficiaries are tourism-related (aviation and gaming) and
commodity (particularly the industrial metals segment) stocks.

Top picks for this investment theme are GENM, MAHB, OM Holdings, MSC and Press Metal. Other notable beneficiaries include MYEG, Yinson and selected consumer stocks.

Source: UOBKH

https://research.uobkayhian.com/content ... f120d3ab01