Thu, 09 Dec 2010 18:16
By FMT Staff
KOTA KINABALU: If Malaysian fund managers had their way, Barisan Nasional will call for the country’s 13th general election before June 2011.
“Our view is that the general election would probably take place in the first half of next year because the market will be stronger in the next 12 months," said OSK Investment Bank's deputy head of research Jeffrey Tan.
Tan, who was here last week, is as bullish about the economy as his peers in MIDF and Bursa Malaysia.
He listed the three “Es” theme that is expected to drive the market stronger in 2011 – election, economic reforms and earnings.
He said that the coming election was good for the construction sector, with lots of contracts being awarded.
In Sarawak, which is due to hold its state election next year, Tan said that the state's construction companies would benefit from a foreseeable building boom.
In Sabah, the biggest oil and gas contract was recently awarded to the Naim Group which has set up its office at the Great Eastern Life Building in Kota Kinabalu, which is suffering a glut in office space.
Comfortably optimistic
Looking at economic reforms, Tan said that aside from awarding contracts, the government has astutely bought sufficient time to prove itself in the transformation process.
Consumer spending has improved and consumer stocks on Bursa Malaysia are up in the third quarter to boost earnings.
The media sector, he said, was among the key sectors that has performed well in terms of earnings from advertising revenue.
Tan also saw prices rising in the property sector.
According to him, the sector has always been a laggard and over-rated with sky-high prices in some hot spots, but nevertheless demographics will drive up prices in the longer run in other areas.
Meanwhile, ground sentiments also appear to confirm Tan's view, with most businesses comfortably optimitic now compared with two years ago.
“If people try to convince you that Malaysia is hopeless, I don’t think so,” said MIDF Amanah Assets Management chief executive officer and chief investment officer, Scott Lim.
He said that Malaysian companies today, including those in Sabah, could do business with any countries in Asia without depending on the Malaysian government.
"Malaysia has 25 million people. Asia has three billion people. You have to keep faith that Asia will bloom.
“What the world is doing today is going to have a bigger impact than what the Malaysian government is doing today.
“I am not saying that the Malaysian government has changed and has become a better government.
“The new administration has woken up and realised that we need to open up and sell to a bigger market.
“In budget (2011), the government is rolling back 10 years of mistakes – spending taxpayers' money.
“The last 10 years the government has been spending taxpayers’ money on your behalf to try and stabilise the economy.
“But today, it has given the signal to private investors: you are supposed to run the show now,” he said.
Educating retail investors
Fund managers have been urging Sabahans to put their monies in equities in order to fight inflation and earn better returns to improve their standard of living.
Sabah is reputed to have the highest cost of living in the country. It also has the highest number of poor people in the country.
Bursa Malaysia global head of securities markets, Uday Jayaram, a Sabahan, said: “I am a Kota Kinabalu boy. Although I now work in Kuala Lumpur, it is a pleasure for me to be back and see so many retail investors at this Market Chat 2010 programme run between Bursa Malaysia and our local partners.”
Speaking at the launch of the Market Chat 2010, Jayaram, who did his primary school education in Sabah before continuing his studies in Singapore and the UK, said the role of Bursa Malaysia in providing education for the investing public was crucial.
“Retail investors form a very crucial part of the business and only about 20% to 22% of the investors in Bursa Malaysia comprise retail investors.
"We would like to see retail investor participation in Bursa Malaysia reach 40% to 50% soon.
“We want you to be confident of putting your money in the market. We want to see more liquidity, more volume in the market so that you can make money. That is what we want,” he said.
He called on retail investors to educate themselves to make informed decision on investments as well as to get good professional advice before they make a commitment to invest in Bursa Malaysia’s many sectors.
Jayaram sees Bursa Malaysia’s prospects as good next year and hopes that more will be drawn into the Malaysian stock market and become successful retail investors.
The Market Chat programme is being held in most towns in Malaysia to educate and create awareness on the securities market as well as encourage online trading among retail investors.
By FMT Staff
KOTA KINABALU: If Malaysian fund managers had their way, Barisan Nasional will call for the country’s 13th general election before June 2011.
“Our view is that the general election would probably take place in the first half of next year because the market will be stronger in the next 12 months," said OSK Investment Bank's deputy head of research Jeffrey Tan.
Tan, who was here last week, is as bullish about the economy as his peers in MIDF and Bursa Malaysia.
He listed the three “Es” theme that is expected to drive the market stronger in 2011 – election, economic reforms and earnings.
He said that the coming election was good for the construction sector, with lots of contracts being awarded.
In Sarawak, which is due to hold its state election next year, Tan said that the state's construction companies would benefit from a foreseeable building boom.
In Sabah, the biggest oil and gas contract was recently awarded to the Naim Group which has set up its office at the Great Eastern Life Building in Kota Kinabalu, which is suffering a glut in office space.
Comfortably optimistic
Looking at economic reforms, Tan said that aside from awarding contracts, the government has astutely bought sufficient time to prove itself in the transformation process.
Consumer spending has improved and consumer stocks on Bursa Malaysia are up in the third quarter to boost earnings.
The media sector, he said, was among the key sectors that has performed well in terms of earnings from advertising revenue.
Tan also saw prices rising in the property sector.
According to him, the sector has always been a laggard and over-rated with sky-high prices in some hot spots, but nevertheless demographics will drive up prices in the longer run in other areas.
Meanwhile, ground sentiments also appear to confirm Tan's view, with most businesses comfortably optimitic now compared with two years ago.
“If people try to convince you that Malaysia is hopeless, I don’t think so,” said MIDF Amanah Assets Management chief executive officer and chief investment officer, Scott Lim.
He said that Malaysian companies today, including those in Sabah, could do business with any countries in Asia without depending on the Malaysian government.
"Malaysia has 25 million people. Asia has three billion people. You have to keep faith that Asia will bloom.
“What the world is doing today is going to have a bigger impact than what the Malaysian government is doing today.
“I am not saying that the Malaysian government has changed and has become a better government.
“The new administration has woken up and realised that we need to open up and sell to a bigger market.
“In budget (2011), the government is rolling back 10 years of mistakes – spending taxpayers' money.
“The last 10 years the government has been spending taxpayers’ money on your behalf to try and stabilise the economy.
“But today, it has given the signal to private investors: you are supposed to run the show now,” he said.
Educating retail investors
Fund managers have been urging Sabahans to put their monies in equities in order to fight inflation and earn better returns to improve their standard of living.
Sabah is reputed to have the highest cost of living in the country. It also has the highest number of poor people in the country.
Bursa Malaysia global head of securities markets, Uday Jayaram, a Sabahan, said: “I am a Kota Kinabalu boy. Although I now work in Kuala Lumpur, it is a pleasure for me to be back and see so many retail investors at this Market Chat 2010 programme run between Bursa Malaysia and our local partners.”
Speaking at the launch of the Market Chat 2010, Jayaram, who did his primary school education in Sabah before continuing his studies in Singapore and the UK, said the role of Bursa Malaysia in providing education for the investing public was crucial.
“Retail investors form a very crucial part of the business and only about 20% to 22% of the investors in Bursa Malaysia comprise retail investors.
"We would like to see retail investor participation in Bursa Malaysia reach 40% to 50% soon.
“We want you to be confident of putting your money in the market. We want to see more liquidity, more volume in the market so that you can make money. That is what we want,” he said.
He called on retail investors to educate themselves to make informed decision on investments as well as to get good professional advice before they make a commitment to invest in Bursa Malaysia’s many sectors.
Jayaram sees Bursa Malaysia’s prospects as good next year and hopes that more will be drawn into the Malaysian stock market and become successful retail investors.
The Market Chat programme is being held in most towns in Malaysia to educate and create awareness on the securities market as well as encourage online trading among retail investors.