Thursday, January 10, 2013

Year of Snake Bodes Well for Malaysia

PETALING JAYA (Jan 9, 2013): The Chinese year of the water snake, which starts from Feb 4, 2013 midnight will be a good year for Malaysia in general, said Feng Shui master Joey Yap, adding that sectors that should do well include education, healthcare, oil and gas, plantations, technology, consumer, transportation and gaming.
On the other hand, sectors that may do poorly include property and insurance, he told some 400 investors attending CIMB's Malaysia Corporate Day on Monday. The one-day event saw 15 companies and five guest speakers participating and a key topic of discussion was the 13th general election (GE13).
"With regards to the possible election outcome, Joey Yap does not know the answer. But based on the political leaders' prospects looking at their dates of birth, (he said) Prime Minister Datuk Seri Najib Abdul Razak's prospects are better than that of Opposition leader Datuk Seri Anwar Ibrahim," said CIMB head of equity research Terence Wong in a note to clients yesterday.
"As for the talk by Institute for Democracy and Economic Affairs founding president Tunku Zain Al-Abidin Muhriz on Malaysian politics, he believes elections will be held either in March or May/June after parliament expires in end-April.
"His view is in line with consensus that the ruling Barisan Nasional should win the elections with a narrower margin than the 2008 elections, but he thinks five or six states could fall to the Opposition including the five (Selangor, Penang, Perak, Kedah and Kelantan) that were lost in 2008 as well as an additional state," said Wong.
For CIMB, it reckons that 2013 could be a year of two distinct halves, with the first half (H1) likely to be volatile as GE13 has to be held no later than end-June, while the second half will be more promising,
Wong expects the stock market to rebound post-elections when risk appetite returns. although the pace of recovery would depend on the election outcome.
The research firm is maintaining its "neutral" weighting on Malaysia, with an end-2013 FBM KLCI target at 1,670 points. Its preferred sectors in the H1 include brewery, real estate investment trusts and utilities.
--TheSun

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