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Hmmm... Yup, the title is correct. We at Finance Malaysia blog would like to hear the views from Foreign analysts only this time. Why? Because they tend to be more independent (we think), and we know that readers like you can easily access to local research reports. So, we made the decision to only show you what is written by foreign analysts as below: Phillip Capital Management : An earnest & all-around Budget? "People’s livelihood, affordable housing and tax issues topped the pre-budget wish lists. Weeks before the announcement, there were many discussions about the Budget 2013 in the media and various conjectures about the budget outcome. Everybody in town was anxiously waiting for the Prime Minister’s speech to reveal the Budget 2013, hoping the wish in one’s heart and mind will come true. TV camera shots have shown that people have been in high spirits cheering for the Santa Claus during the speech. We think Barisan Nasional has successfully drawn up the budget ...

Local market, view as one of the most defensive market in the world, suffering the same fate as regional market this round. The correction which started early of August had actually hit our shores too. Who say we are in a better position when market downturn? No one raised their hands now. Ha..aaa. Historically, our local market is very " Dull " if foreigners do not participate here. KLCI shoot up because there is an in-flow of foreign funds into Bursa Malaysia. During that time, we are very joyful and assumed that they're in for long-term (until recently). Don't be " syok-sendiri laa " bro. Investors are here because they want to make profit. After achieving their goals, what would they do? Of course, taking profit (and bring down KLCI) and left our country. Then, when is the best time to leave? Now or never. In other words, KLCI went up and go down mainly because of foreign funds. Retail investors definitely do not have the power to muscle the markets. Agr...

After an unexpected AAA rating downgrades and an expected correction, KLCI is coming down from its peak of 1,597 points in early July. CLSA come out with a timely report highlighting 5 stocks which investors should focus on even during volatile times. These stocks have resilient earnings, clear earnings visibility and are supported with dividend yields. CLSA: YTD major indices performances as at 08 Aug 2011. Which are the counters? Axiata - Turning into a cash cow Axiata's earnings will remain resilient during downturn as EBITDA is dominated by cellcos in Malaysia and Indonesia where price competition is muted these days. From a highly geared company in 2008, Axiata is now turning into a cash cow with forecast yield rising to 10% in FY13. CLSA is expecting dividend yield of 3.6% for FY11, translating into total shareholders return of 10%. Gamuda - Risk discounted The 22% share price fall from 52-week high has discounted its Vietnam investment risk. US$600m market cap loss is m...

While fears of an European sovereign debt default reverberating worldwide, Malaysia quietly outperformed most of the world in June as the Banking sector led the KLCI higher after the potential M&A of RHB Cap was called off . We had expected the KLCI to trend higher led by banks but our hope was founded on potential excitement driven by the merger rather than on sighs of relief that there would be no overpaying for RHB Cap. OSK Research: Top Gainers and Losers of FBM 100 during the month of June 2011. July looks to be a Strategist’s fantasy? With numerous announcements related to economic reform and infrastructure developments lined up for July, namely: 1 July – The launch of the ETP River of Life project involving the rehabilitation of the Klang River; 5 July – The 7th ETP update during which the PM will also unveil PEMANDU’s efforts to classify some 37 policy change recommendations made in the NEM into 6 Strategic Reform Initiative (SRI) clusters that will signal real economic...

Thinking that yesterday's 13points drop is enough? Today, KLCI slumps again for the 2nd day in a row. Are you expecting it? Personally, I don't think most of us can predict the future. But, what I can say is that many investors like me would positioning our money very well, anticipating some good announcements during Invest Malaysia 2011 Conference today and tomorrow. If you're thinking the same way, Good Luck!!! TheStar picture Any BAD news? Excluding foreign news, NO bad news at all in Malaysia. But, investors see the opposite side now - no good news = bad news ! Profit-taking activities set in on Malaysia market beginning this week. If you're not the one who cash out yesterday, you would probably forced to stay on holding until the " tsunami " is over. Money is washing away from the market, flowing overseas (capital outflow by foreign funds). That's why banking stocks, Genting, Petronas Chemicals took a beating today, pulling down KLCI as a result. ...

All are going very well for Malaysia construction sector last year in line with the recovery of economy until it hit the first " hard bump " last week. We all know that construction sector is very volatile, influenced by the health of global economy, government's pump-priming projects, and of course the huge overhead costs such as labor and building materials costs. Somehow, unrest at Middle East are hogging the bright future of Malaysia's construction counters. First, surging oil prices put pressure on the bottom-line of the companies. Second, projects from that oil-rich nations will dampened the outlook with a slew of Malaysian companies venturing successfully into that region. The Game still going on? According to CIMB Research , the selling pressure on construction stocks is overdone as jobs in the Middle East account for 3 - 41% of the order books of WCT, IJM Corp, Gamuda and Muhibbah Engineering and the projects are mostly at the tail end with no payment is...

During 4Q 2010, there were a series of positive news brought into construction sector. These news could possibly bring some cheers for local contractors during the " award ceremony " soon. To summarize it, let us examined and explored the news highlighted in 4Q 2010 for construction sector:- OSK Research: KL Mass Rapid Transit , with the cabinet approving 1 of the 3 lines proposed, which will run from Sg Buloh to Kajang. It is said that the Government will set up an SPV to fund the RM36bn job via bonds and other capital market instruments. Tenders for the Sg Buloh-Kajang line will be open in April while construction will commence in July. Gamuda-MMC JV, which was recently appointed as Project Delivery Partner, to be the ultimate beneficiary of the MRT. The JV is only allowed to tender for the tunneling works estimated at RM14bn. Construction of the RM5bn Warisan Merdeka development is said to be slated to commence this year for implementation in 3 phases over 10 years. Among...

When the RM15.6 billions take-over news broke out, MMC share price has been rallying to multi-months high. It was reported that MMC is pairing with EPF and PNB with MMC holding a 40% stake of the consortium. On the other hand, Khazanah Nasional Bhd is the ultimate holding company of UEM Group Bhd . The Pull factors… PLUS Expressways, is one of the key assets that spark MMC interests? The national’s largest cash-generating toll-operator undeniably is Khazanah’s golden asset with 55.2% direct and indirect interest. UEM Land , which has a huge land bank in southern corridor – Iskandar Development Region. This is favorable to Johor based MMC’s investments. To boost its construction arm with stronger muscle? UEM Group is having several projects in Malaysia, such as the Penang Second Bridge. MMC can leverage on the latter expertise and also to gain market share, given the lack of domestic awards. What makes me interesting is the alternative MRT proposed by IJM-UEM recently. By acquir...