Looking at leading indicators and conducive business environment on top of low-base effect, Malaysia’s economic growth is likely to improve to 4.9%yoy in 2019.
We also expect Bank Negara to maintain OPR at 3.25% next year, amid a decent domestic economic growth. In addition, a continuous current account surplus could support to strengthen the Ringgit to USD/MYR 4.00 level by year-end of 2019.
While Malaysia’s economy remains on good traction, we foresee geopolitical events to cast a shadow on investors’ sentiment on our equity market. Hence, MIDF Research has revised our year-end 2019 FBM KLCI baseline target to 1,830 points which equates to PER18 of 16.2x.
Based on our stock selection criterias, we are pleased to share our list of top picks. In short, the themes above are for the purpose of fulling the needs to generate returns amidst the period of high volatility in the market; either through (1) Defense –(e.g. Bermaz Auto, UOA Dev, CMS, Tenaga Nasional, Gas Malaysia and UEM Edgenta), (2) Offense – (e.g. CIMB, IHH, Maybank and Air Asia) |
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