Hot & Cold Sectorial Play In Bursa Q2 2015

Posted by Kris | Wednesday, April 29, 2015 | , | 0 comments »


This is my personal opinion of which sectors will be hot or cold for Q2 2015

Hot

1) IT company particularly GST counters. (Recurring income from licensing)
2) E-commerce related IT companies - I see new E-malls start to spring up in Malaysia
3) Transportation company. See point (2)
4) Export related company - Earning foreign currency as our Ringgit weakens
5)Semiconductor related which includes tester related companies, OEM component producer, etc

Cold

1) Plantation - CPO prices still very weak
2) Property counters - Loan are harder to get. Not profitable anymore to flip houses
3) REITs - Other than dividend, capital gains were no longer spectacular vs the property boom
4) Companies whose raw material is denominated in USD.
5) O&G related companies - I still think earnings will be weak even though oil prices have started to hover around USD50. Alot of retrenchment happening globally on O&G companies and even scandals start to surface out on O&G companies (Brazil Petrobas)
6) Consumer good companies - GST makes me sad.
7) Precious metal companies. Gold prices still in laggard, so don't put up hopes that prices will reverse upwards , even though there is still gurus out there shouting BUY BUY BUY for GOLD & SILVER.



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