Credit Suisse Investment Outlook 2018

Check out the 2018 investment outlook by Credit Suisse!

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What Stocks have Foreigners Been Buying?

Take a look at Credit Suisse’s latest report on a summary of What Stocks have Foreigners Been Buying in Malaysia.

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Biggest increase in foreign shareholding:-

1. Malaysian Airports, +13.7pp
2. Gamuda, +8pp
3. Maybank, +5.4pp
4. CIMB, +4.8pp
5. Sime Darby, +2.7pp

Reduced Foreign Holding:-

1. Air Asia, -9.6pp
2. Karex, -3.0pp
3. Tenaga, -2.4pp
4. IOI, -0.5pp
5. Telekom, -0.5pp

CS on Malaysian Economy Q1 2017

Credit Suisse stated that Q1 2017 is likely the peak for our country’s GDP. Historically Q2 is proven to be much weaker than Q1 for obvious reasons but Raya seems to be in Q2 this year and hopefully that changes everything. This makes Q3 the definite slowdown quarter that would be recorded this year.

Take a look at CS’s report in the link below to see the segments that grew or shrunk in Q1.

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CS Recommends Buying Malaysia

The underperform rating on Malaysia had already been taken off and now its a neutral recommendation for Malaysia.

Well that’s common case for most investment banks to be a step behind the action… The best is to digest the data and given and take contrary thoughts on the recommendation by these research houses.

That will save you a lot on chasing the market!

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Credit Suisse 2017 Malaysian Strategy

Highlights

Starting with ringgit, the biggest problem with it is foreign bondholders dumping our Malaysian Government Securities which equals a weaker ringgit ahead. There isn’t any near term catalyst other than oil price rise that would help the ringgit at the moment. We would likely see weaker ringgit for 2017.

Election is here and it would likely be this year since the Barisan collation is at its strongest since the last election. KLCI historically shows that it perform all markets in the region 3 months before election and underperforms all countries in the region one month after election.

Malaysian GDP forecast for 2017 at 4.5% compared to 4.17% for 2016. This showed that economics of the country is still improving but that isn’t reflected in our currency.

Credit Suisse gave a very cautious target of 1670 for KLCI which is actually 22.5 points or 1.36% from today’s close…

See the rest which includes sector recommendations in the report below!

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CS on PNB’s Strategy

Well with the new PNB Chairman Tan Sri Wahid Omar leading the investment house, we would likely see big shifts happening since he is the master of change transforming a corporation or in a form of rescue.

Starting with their investments in Sime Darby, see how PNB would roll out its holdings shift to some of our biggest corporations in Malaysia.

 

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CS on Malaysia & Other Asian Economies Post Election

These are two articles from Credit Suisse for the outlook of our equity markets in Malaysian and other Asian economies after Trump got elected as President.

In the meantime, the biggest threat for our country is still Trans-Pacific Partnership Agreement (TPPA). The net benefit of TPPA for Malaysia far exceeds the negative effects with GDP forecast to rise about 8% after 2018.

Take a look at these two articles below!

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