Post-GE Strategy HwangIM sees surge in stocks buying by local/foreign funds

Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 06 May 2013 10:36
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KUALA LUMPUR (May 6): David Ng, Chief Investment Officer of Hwang
Investment Management Bhd (HwangIM), expects a surge in the buying
activities of local and foreign funds in the stock market after Barisan
Nasional (BN) retains control of the Federal Government in the
just-concluded general election.
In a note on his market outlook and investment strategy, Ng said: “The
election overhang is behind us, we believe our local bourse will continue
its ascension as investors can now start deploying their cash to the
market, which has been sitting on the sidelines.
“We are expecting a surge in buying activities led by foreign and local
institutional investors who are attracted by our lagging market
performance versus the regional peers and strong economic
fundamentals such as good foreign direct investment, a positive investment cycle and strong consumer confidence.”
Ng revealed that since end-February, HwangIM has been buying the financial, oil and gas, and some property development
stocks to prepare for a status quo election outcome.
With his projection proven right, Ng added: “Now, we are adding on equity weight in sectors that will do well post-election,
such as those involved in the continuation of nation building and economic development.
“These are the oil and gas, financial, CONSTRUCTION [] and media sectors, in which the latter is a result of stronger
consumer confidence and discretionary spending.”
HwangIM also expects the ringgit to strengthen further this year versus the greenback and other G3 currencies, given the
strength in Malaysia’s economic fundamentals, relatively high bond yields, foreign equity inflows and low global interest rate
environment.
“Our investment strategy for the Asian equity portfolio as well as the local equity funds is to buy and hold out for the global
economic recovery to pan out,” he said.