January happened so fast and it seem though it would be over soon. DBS takes a quick look on what happened and the strategy to move ahead.
Under the latest Bank Negara compliance issue, foreign insurers listing in Bursa Malaysia requires a 30% shareholding by local investors. In the report below by CIMB, they view that we would likely see IPOs coming in for large cap insurance companies such as AIA, Great Eastern and Prudential coming into the market.
They would be required to open up their holdings to local investors let it be retail or institutional.
Another alternative would be seeing more and more M&A activities happening. Nothing much to recommend here but its a good head up for now.
If you look at iSaham’s data (click for link) and sort if by 3 year revenue growth, one of the biggest would be GUOCO which currently sees very little movement on its stock price.
Based on the chart, a very strong support can be seen at RM 1.10 and merely the recent turn up might be a good sign to buy. The good thing about this chart is that there are plenty of support while resistance merely has one that is significant which is at RM 1.41.
We haven’t back check the facts on where iSaham get the numbers for revenue growth but the estimate should fair just right for now.
We think that this stock isn’t something that would move rapidly but more like a 2018 story. We suggest that you could start acquiring now or wait for weakness depending on your risk appetite. It would definitely take awhile before markets begin to revalue the stock.
In the meantime, keep this in your watchlist!
This is the latest report from Credit Suisse where it valuates Malaysian banks after the implementation of Malaysian Financial Reporting Standards 9 (MFRS 9).
This is a good report from CIMB with tonnes of information and chart that show trends in fundamental numbers for our country’s banking sector.
Click on pic for report!
The good thing about this report is the guidance on how each stock is trading based on its historical RNAV.
Click on the image below for Full Report!
Take a look at Credit Suisse’s latest report on a summary of What Stocks have Foreigners Been Buying in Malaysia.
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
The annual event held every year. Well if you don’t have the chance to visit, you can look at this report for highlights.