GE13: Investors to turn aggressive on post-election rally

by **hlk** Mon 06 May 2013, 09:50

KUALA LUMPUR: Investors are re-examining their investment strategies
and turn from defensive to aggressive in anticipation of a
post-election rally, said Hwang DBS Vickers Research (HDBSVR).
The
research house said on Monday, the local bourse rose 0.3% year-to-date,
which was the fourth lowest return among the 11 Asian stock exchanges,
set to play catch-up with its regional counterparts. Japan's Nikkei 225
is up 31.7% year-to-date, Philippines up 24.1% and Indonesia up 14.1%.
"This comes as foreigners continue to park more money in Malaysia. According to the latest Bank Negara Malaysia's
statistics, there was an increase in foreign holdings of Malaysian debt
securities of RM6.5bil (to RM224.8bil) in March, following an outflow
of RM10.7bil in February," it said.
HDBSVR said technically
speaking, relief buying force may give a fillip to Malaysian equities
this week as political risk diminishes following the GE 13 outcome.
"In terms of share price actions, counters that will probably attract added interest this week include construction plays - Gamuda,
MMC, MRCB and IJM - as mega infrastructure projects (such as MRT, LRT
system extensions and high-speed rail) will proceed according to
plans," it said.
HDBSVR said market laggards like CIMB
and DRB-Hicom would see trading interest while Tenaga might benefit
from tariff hikes arising from the implementation of a proposed fuel
cost pass-through formula.
Automotive companies - UMW, APM and
MBM - could see trading interest in response to a likely announcement
of a national automotive plan in the near future (following the Barisan
Nasional coalition's promise to gradually reduce car selling prices in
its election manifesto).