Saturday, February 16, 2013

Malaysia Boleh?

Analysis of market trends during past elections have shown a consistent pattern, according to RHB's Lim Chee Sing. Typically, a week or two before elections are announced and parliament is dissolved, equities are sold down. Then, after elections are over, these same stocks recover quickly. Malaysian elections are due soon on Mar 30. Parliament could be dissolved by Feb 22.

These are stocks recommended by Lim:

Company
Price @ Feb 13
PER
Dividend Yield (%)
Genting M’sia
3.73
16.2
2.3
CIMB
7.25
12.3
2.1
Gamuda
3.70
13.7
3.2
Lafarge M’sian Cement
9.24
21.8
3.7
Tasek
14.28
16.7
4.2
Sunway
2.41
7.1
-
Dialog
2.33
30
1.3
Dayang
2.46
13.4
4.1
Perdana Petroleum
1.11
25.8 (est)
-
Perisai
1.02
9.4
-

I have done a scan, but found these stocks (other than CIMB) still too high. However, if really there is a huge correction after elections are announced, I may buy.

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