Rakuten Trade vice-president Vincent Lau say there could be a sector rotation playing out, in which investors were switching out from the oil and gas sector into the construction sector, probably due to optimism about the prospects of kick-starting infrastructure projects hinted by the government lately.
Small and mid-cap stocks offer better value at the moment, says RHB May 15, 2020 KUALA LUMPUR: Small and mid-cap stocks offer better value at the moment given that their large-cap peers have staged solid rebounds off their March lows, RHB Investment Bank Bhd (RHB IB) said. Shares of small-cap companies had lagged behind in staging strong recovery rebounds from Bursa Malaysia's March 18 dip, the bank said. RHB IB chief executive officer Robert Huray said alpha hunting remained a daunting task for most investors against the backdrop of heightened uncertainties in light of Covid-19. This was given the fact that Bursa's key index FBMKLCI had rallied vigorously, narrowing its year-to-date (YTD) losses to 13 per cent. This had ultimately raised the question of further upside potential for big liquid stocks, Hurray said at the virtual launch of RHB Top 20 Malaysia Small Cap Jewels 2020 (RHB Top 20) book here today, He said the small-mid cap space had offered investors a 27 per cent gain versus a -4.4 per cent for FBMKLCI last year. The segment, though, is still off from its peak by a much wider margin, down 23 per cent YTD. "With the fate of many bigger companies tied to waning external demand, low commodity prices and dwindling capacity to spend locally, chances of finding winners in the new norm post Covid-19 will be higher for smaller and nimbler companies that can better capitalise on emerging opportunities," Huray said. RHB Top 20 features 20 names for investors to consider during this challenging period in the wake of the Covid-19 pandemic. Hurray said its top 20 firms had collectively outperformed the FBM KLCI and the FBM Small Cap Index with a holding period return of 20 per cent since the book's launch last May. RHB IB head of regional equity research Alexander Chia said it had begun to see value in the market in a longer-term perspective, despite the elevated risk environment as the result of Covid-19. "We believe the launch of the book is well-timed as we are seeing strong demand for alpha rich small-mid caps stocks that are resilient and can survive the on-going turmoil," Chia added. In this year's book, the largest stock by market cap, at RM1.7 billion, is Mi Technovation, while the smallest is Advancecon Holdings Bhd at RM122 million. Of the top 20 "jewels", 65 per cent have a market cap of less than RM500 million. The trailing median price-to-earnings-ratio and return on equity of this year's pick are 12.6 times and 11.7 per cent respectively. The RHB Top 20 forms part of the larger RHB Regional Small Cap Compendium that annually lists stock investment ideas from RHB IB's research teams in Malaysia, Indonesia, Singapore and Thailand. RHB IB said companies in this year's book have market capitalisation of below RM2 billion, from 10 different industry segments with the biggest representation coming from the technology and industrial products and services sectors. The screening process took into consideration the companies' spread and size, managements' credibility, industry fundamentals, earnings growth potential, industry track record and its level of corporate governance.
to boost economy for both Malaysia and singapore. definetly HSR will go on. might take more than 6 months to appoint contractors etc. there are sign operator is collecting. might goreng to very high price for construction industry
Tan Sri Lee Kim Yew 29% stakes in Mtronic is 7.5sen ! Now we can buy at 4sen which is far more cheaper than him. Will Tan Sri Lee making general offer at 7.5sen ? Since he got mention his intention to do so.
Sanichi Dato Sri Pang Chow Huat is 2nd largest shareholder in Mtronic. Sanichi also hold 5% stakes in Mtronic. We saw Sanichi share price rise from 4sen to highest 12sen. Will rotation play turn to Mtronic soon ?
XOX, AT, Sanichi all rose alots. Mtronic still in bottom. Among these stocks, Mtronic fundamental is the strongest one. But share price is the cheapest.
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
MQ Trader 440 views | 2 d ago
0:17
New IPO: An enterprise IT solutions provider that provides implementation services, maintenance, support and professional services, Vetece Holdings Bhd aims to list on the Ace Market!
MQ Trader 554 views | 6 d ago
0:17
New IPO: A manufacturing and trading of biomass fuel products, particularly PKS and wood pellets company, Elridge Energy Holdings Bhd aims to list on the Ace Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
roszali
41 posts
Posted by roszali > 2020-04-24 11:16 | Report Abuse
MOIDEEN + TZ finance minister OK + construction = $$$$$$$$$$$$$