Kenanga Research:
- Within this batch of Naga Warrant issuance, we like airline companies AIRASIAC57, and AAX-C9 which should benefit from a weak oil price environment.
- We also like the technology sector, of which GTRONIC-CK, SKPRES-CF, UNISEM-CY fall under. The overall industry continued to show improvement as the global semiconductor sales in February 2017 increased by 16.5%, marking the seventh consecutive YoY growth which is also the largest YoY growth since November 2010.
- Although we have been more conservative with regards to the construction sector (Neutral), we anticipate newsflow or contract awards from LRT3 to the tune of RM9.0b to be dished out over the coming 1-2 months. At the same time, market talk is that the ECRL contract award may be expedited to Sept/Oct, far earlier than our expected timeline of 1H18. Should these materialise, we see the potential for spillover effects towards EKOVEST-CB, SUNCON-CK and WCEHB-CB.
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