Top thread. Lemme contirbute abit oso

Sharing from remisier...

Here’s our strategy piece to kickstart the electrifying year of 2025!

1H25 OUTLOOK: Relying On Domestic Sparks

- While Malaysian equities predictably kicked off the year with caution, the FBMKLCI is still adequately charged up by robust domestic-driven liquidity and events. We anticipate the market to progressively adopt a risk-on mode as we expect US president-elect Donald Trump to be pragmatic in executing trade policies.

- Key arguments include: a) Most US trade policy scenarios envisioned would still favour Malaysia as a business-friendly onshoring manufacturing hub, b) the ringgit should be more resilient this time, and correlation to China’s Rmb hopefully weakens (as in recent periods)

- Market sentiment eventually supportive of outperformances by small-mid caps and selective laggards

- OVERWEIGHT on the building mat, property, construction, and selectively the technology and O&G sectors. Conversely, autos and telcos may Underperform in a rising market.

- Key domestic investment themes include Iskandar 2.0, data centre rollout, renewable energy, wage hikes winners, 4Q24 results season winners and blockchain

- Top picks clear near-term winners (results season) include RGB, MYEG and VS Industry. Others: HLBank, Inari (replaced Gamuda), IOI Prop, Pekat Group, Press Metal

- Thematic Beneficiaries: M&A (Yinson), Iskandar 2.0 and DC plays (SP Setia, Eco World, Mah Sing), mega infra (Gamuda), Wage Hikes and Consumption Spurt (MrDIY). Glove stocks could provide trading opportunities on pullbacks

$YINSON / 7293 (YINSON HOLDINGS BERHAD)
$MRDIY / 5296 (MR D.I.Y. GROUP)
$SPSETIA / 8664 (S P SETIA BERHAD)