Ooi Kok Hwa

Author: gorenggoreng88   |   Latest post: Wed, 23 Oct 2019, 11:42 AM


[Ooi Kok Hwa] Small-cap stocks are 2020’s best investment options

Author:   |    Publish date:

Blue-chip stocks are also a sound option for investors, says Ooi. – Zulkifli Ersal/theSUN


PETALING JAYA: Given the overall bullish outlook for next year, investors looking for a bargain would do well to look at small-cap stocks, according to MRR Consulting Sdn Bhd managing partner Ooi Kok Hwa.

In a recent interview with SunBiz, Ooi said he expected a rally in small-cap stocks next year, similar to what was seen in 2014.

“The Small Cap Index reached its peak of 19,334 points in August 2014. As of end-September the index was at 13,000 points, which is a drop of 33%, compared to the FBM KLCI. So if people are looking to buy small caps, they should do it now as they are currently undervalued.”

“If you are not confident in choosing particular stocks, then buy into any unit trusts that have a small-cap fund,” he said.

Blue-chip stocks are also a sound investment option, with Malayan Banking Bhd and CIMB Group Holdings Bhd being two of the safest options, according to Ooi.

Asked which sector investors should focus on, he said all sectors from construction to technology service providers have positive prospects next year, thanks to an expected uptick in the Malaysian economy and initiatives announced in the recently tabled Budget 2020.

The construction sector is expected to benefit from the number of development projects that were announced in the budget, such as the repair and maintenance of roads leading to Port Klang, the Kota Perdana Special Border Economic Zone logistics hub at Bukit Kayu Hitam and several other economic corridor development activities.

“The money that has been allocated to the construction sector is overall very positive as a lot of projects will continue to be developed. Overall spending will continue and stocks in the sector are already starting to see some trading interest,” Ooi said.

The plantation sector will benefit from the “Phase 1 deal” in which China will reportedly purchase US$40-50 billion (RM167-209 billion) in US agricultural products annually, which has prompted an uptick in soybean prices.

“This increase in soybean prices will lead to a recovery in crude palm oil (CPO) prices, and coupled with the B20 biofuel initiative coming in next year, stock levels will drop and overall prices will go up,” said Ooi.

As for the consumer sector, the increase in the minimum wage to RM1,200 a month, together with the incentives to boost employment should encourage higher consumer spending which will directly benefit stocks in the sector, Ooi explained.

The banking sector could, however, be impacted by an expected cut in the Overnight Policy Rate (OPR) by Bank Negara Malaysia next month, said Ooi.

“If you look at the KLCI trends, each time BNM cuts rates, our local market tends to go up about 1-2%. So, overall, it’s a positive thing. I also expect a higher loan growth for the banking sector, so that will help to offset the negative news of a rate cut,” he said.

Lastly, for technology stocks, the overall index is trending higher, said Ooi, driven by several initiatives and programmes being undertaken by the government to accelerate the digital economy.

The budget outlined a number of plans to improve the digital infrastructure of the country, such as the National Fiberisation & Connectivity Plan, introducing a 5G Ecosystem Development Grant and providing RM10 million to the Malaysian Digital Economy Corporation to train micro-digital entrepreneurs and technologists.


Mr. Ooi Kok Hwa - The Year 2020: Bull or Bear? [Goreng Goreng]

Mr Ooi Kok Hwa - Global and Malaysia Stock Market Outlook 2019 [Goreng Goreng]

Ooi Kok Hwa: We are heading tech rally like Y2K due to Digital Transformation [Goreng Goreng]

Market Outlook Symposium 2018 - Ooi Kok Hwa

Ooi Kok Hwa: Bull market in stocks has years to run

Ooi Kak Hwa: The share market will be extremely bullish!

Ooi Kok Hwa - Market Outlook Q3 & Q4 of 2017

Goreng Goreng Goreng.....

Share this

ahbah Small cap stocks .... mkt darlings for yr2020. Go in early now when they are super chip !
23/10/2019 12:13 PM
Smartinvestor2030 Post removed. Why?
23/10/2019 5:00 PM
ahbah Why the small cap stock players make no noise when sifu Ooi oredi clearedddd all the land mines on the small cap paths for us to make easy money ?
23/10/2019 5:18 PM
BN_better Vote for BN in coming Tanjung Piai by-election. 17 months under PH stock market become worse.
23/10/2019 9:02 PM
23/10/2019 10:12 PM
ahbah We all kena teruk by KLCI fall under Pak Atan rule lah.
24/10/2019 11:01 AM
Smartinvestor2030 Post removed. Why?
24/10/2019 12:38 PM
lilychan Ooi say The budget outlined a number of plans to improve the digital infrastructure of the country, such as the National Fiberisation & Connectivity Plan, introducing a 5G Ecosystem Development , Malaysian Digital Economy Corporation to train micro-digital entrepreneurs and technologists.
24/10/2019 12:42 PM
Aristocats All cash in Bursa if you are confident of OKH.
24/10/2019 11:53 PM
ahbah OKH .... our Malaysian mkt sifu lah.

Small cap stocks coming ! The sifu said.
25/10/2019 9:40 AM
tah16600 That only if Annuar becomes our PM next yr , otherwise the market will move in opposite of what Mr OKH predicted
25/10/2019 10:57 AM
tah16600 Talk is easy. But market is driven by so many factors may it be regional or international. To what I think, our market is purely affected by political issues
25/10/2019 11:20 AM
tah16600 While waiting for bull market to materialize why not listen to what our super hero said
25/10/2019 11:31 AM


429  281  549  742 

Top 10 Active Counters
 SAPNRG 0.30+0.01 
 ARMADA 0.525+0.035 
 DGB 0.15-0.015 
 PWORTH 0.04-0.005 
 MLAB 0.065+0.02 
 HSI-H8F 0.420.00 
 HSI-C7K 0.315-0.02 
 VELESTO 0.380.00 
 ISTONE 0.21-0.015 
 FPGROUP 0.54+0.045 
Partners & Brokers