As a plant turned edible oil to meet the needs of consumers, palm oil today joins the ranks of commodities dividing nations worldwide for its enviromental and political implications. An undeniable fact is palm oil’s contribution to Malaysia’s economy. Having roots in our history since 1917, exports of palm oil and palm-oil based products continue […]
KUALA LUMPUR, Feb 23 ― Asean, especially Malaysia, Thailand and Vietnam, is a potential beneficiary of international companies moving out of China amid the trade tensions with the United States, said Maybank Kim Eng Singapore senior economist Chua…
KUCHING: The Sarawak construction sector is behind on Building Information Modelling (BIM), as seen in the latest round of training in Building Information Modelling (BIM) in January. This follows the state’s first and only myBIM Satellite Centre, set up in conjunction with the Construction Industry Development Board (CIDB) in June last year. In this round, […]
KUCHING: Sarawak-based Cahya Mata Sarawak Bhd (CMS) is expected to report its fourth quarter 2018 (4Q18) results on the last week of February with analysts predicting the cementmaker to expect a good year to come in spite of lower predictions for 4Q. This comes as RHB Research Institute Sdn Bhd (RHB Research) anticipated for 4Q18 […]
PETALING JAYA: As a flattish market in the near term does not bode well for a “buy and hold” strategy, MIDF Research advised the investors to focus on velocity and volatility of sectors and stocks to whither uncertainty.
In a strategy report today, the research house said it recommended a trading strategy focusing on velocity and volatility which is divided into four quadrants, namely “opportunist”, “trading”, “buy and hold” and “bullets”.
Overall, MIDF Research said it observed that construction players are the most suitable for a “trading” strategy due to their high velocity and high volatility.
It noted that construction stocks make a huge part of this quadrant, which include Malaysian Resources Corp Bhd, WCT Holdings and Gamuda Bhd.
For aviation, MIDF believes that AirAsia Group will suit well for a trading strategy too.
“With ample liquidity and a healthy newsflow driven price volatility, a trading portfolio would be ideal to generate returns amidst a ‘flattish’ movement of the benchmark indices.
“Liquidity would support ease of trading movement and the newsflow would provide the incentive to take trading position towards ‘sell high’ and ‘buy ‘low’ investment decision process,” it noted.
The research house said other sectors, such as rubber gloves fit to be used as “bullets” for the execution of the “opportunist” trading strategy.
MIDF said, this “opportunist” quadrant describes stocks that are relatively have low traded volume and highly volatile price movements, and stocks sitting in this quadrant includes YTL, UEM Sunrise, Sunway Construction and Cahya Mata Sarawak.
“All of these are great stocks to be included in the portfolio, but due to low liquidity, investors have to scan the market sentiment and wait for an opportunistic time to buy these stocks, wishing for Lady Luck to show herself.”
MIDF noted that the “bullets” quadrant describes stocks that relatively have high liquidity and low price volatility, while “buy and hold” describes stocks that are relatively have low traded volume and less price movements.
Stocks sitting in “buy and hold” quadrant includes UOA Development, Nestle and KKB Engineering.
The research firm said the FBM KLCI has been on a flattish trend so far this year with a year-to-date growth of less than 1% but expects earnings to grow by mid single-digit amid supportive economic policies.
Overall, it reiterated its FBM KLCI year-end 2019 target at 1,800 points.
As a country blessed with one of the oldest tropical rainforests in the world – some saying it rivals that of the Amazon – it comes to sense that Malaysia’s forests make up a crucial pillar of the economy via the timber industry and wood-related products. Indeed, the industry is going from strength to strength […]
KUALA LUMPUR (Feb 15): The Sessions Court was today told that lawyers representing former Prime Minister’s wife, Datin Seri Rosmah Mansor, in the graft charges involving solar energy projects in rural schools in Sarawak objected to the prosecution’s application to transfer the case to the High Court. Deputy public prosecutor Datuk Mohd Dusuki Mokhtar, who appeared for the prosecution, told this to the court when the case came up for mention before judge Azman Ahmad. However, Mohd Dusuki said the date to hear the application had been fixed for MarchRead More
KUCHING: Analysts across the board gave two thumbs up for Serba Dinamik Holdings Bhd (Serba Dinamik) catching its first batch of contract wins in 2019 totalling US$110 million (RM448 million). The announced values consist only of the international contracts – United Arab Emiraes, Uzbekistan and Qatar – as the Malaysian contracts are all call-out in […]
KUCHING: There is huge potential for Sarawakian companies to participate in the halal exporting industry due to the unique attributes of the products sold here as well as the growing Muslim population which is expected to drive the growth of the halal industry worldwide, says Malaysia External Trade Development Corporation (Matrade). With the total spending […]
KUCHING: Malaysia External Trade Development Corporation (Matrade) Sarawak branch encourages export-ready Sarawakian companies to fully utilise export programmes and grants that are readily available. According to Matrade Sarawak, this year, there are 477 Matrade Work Programmes comprising exporters development and export promotion activities. These programmes are aimed at accelerating Malaysian companies in participating in the […]