The one major push factor to drive market participants out in droves at this point or even in the foreseeable future is the further weakening of the Ringgit, but which would only affect foreign investors specifically. Domestic investors flush with cash should be primed for re-entry. While still early days in assessing the potential impact of President-elect Trump’s action plans and ramifications on the rest of the world, we are cautiously optimistic that level heads will prevail.
Our year-end target is 1,750 points and suggested stocks for the year are Genting Plantations, Kossan Rubber, Chin Hin Group, Ta Ann Holdings, SCGM, Sime Darby, SapuraKencana Petroleum, Wah Seong Corporation, LBS Bina. We are Overweighjt on the Plantations, Power, Oil and Gas and Construction sectors.