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Well, well, well... The newly announced Budget 2012 seems to be a very holistic one, which covers almost everyone (even the opposition MPs). In the budget, a total of RM232.8 billions was allocated to implement all Government development plans, which include the projects and programs under various plans, focusing on the well-being of the rakyat . But, there are a few interesting questions that Finance Malaysia would like to highlight here. 1) Is it too optimistic? As we all know, the external environment is becoming more challenging once again due to slowdown in US, Europe and Japan (if not double-dip recession). This would definitely impact Malaysia as manufacturing sector still playing a crucial role in our country's growth. While IMF is revising downward the global growth next year, our Government is projecting a 5 - 5.5% growth this year, and 5 - 6% for 2012. I think we should be very happy if Malaysia can grow more than 4.5% for 2011 and 2012. 2) Budget Deficit to come down...

En-route to Main Board of Bursa Malaysia on 1st July 2011 , Eversendai Corp is a structural steel specialist with operations predominantly in the Middle East, Malaysia and India. Currently, the company is bidding for RM1.5 billion worth of infrastructure, high-rise building and power plant projects in Southeast Asia, India and Middle East after being invited by public and private sectors. Its outstanding construction order book stood at RM1.4 billion as at 16th May 2011, while owning 4 fabrication plants in Malaysia and Middle East with a combined annual capacity of 119,000 tonnes. What is so attractive about Eversendai? According to RHB Research, Eversendai's key appeal to investors lies in: It being a rare "outside-looking-in" home-grown construction company that has excelled in the international market, particularly, the Middle East, based on its own strength, practically almost indifferent to the local construction cycle; The recognition by key international contrac...

When everyone talk about mass rapid transit (MRT) system at KL, it's reasonable given the terrible bumper to bumper traffic jam every working days. Certainly, it creates a buzz in Malaysia with its RM50 billion price tag. Maybe because of the buzzing topic, Iskandar Regional Development Authority (IRDA) also looking at the possibility of implementing a 500km MRT within the region which would also provide a direct link to Johor Bahru. The project is scheduled for completion by 2020. What's your reaction? I believe many people will think the same with me - unbelievable . My jaw drops down the floor thereafter. We do not have to perform  those sophisticated calculation to judge whether the Iskandar MRT is viable or not. I came out with these 3 points. 3 Stupid Questions to ask our-self Population KL is capital of our country, while Iskandar is a region which encompass the capital of a state Do you think that Iskandar has more people than than the capital of KL? Some more, Iskanda...

After being hit by a few Black Swan events, markets rebounded in March with the KLCI ending 1Q in the black. Moving into 2Q, we still see some short term volatility but are confident of an eventual rally to close in on our year-end KLCI target of 1680 points. We advise investors BUY Big Caps on potential rebounds while focusing on the more defensive Small Caps given their superior performance over the past few months. The favorite sectors remain Banks, O&G, Property and Construction in the mid-to-short term while the longer term buys are Media and Healthcare. This strategy is reflected in our April top buys as well. Timber the BIG winner... For March, timber stocks were actually the big winners, including names such as Suber Tiasa, Jaya Tiasa, TaAnn, WTK and Lingui, on hopes for better timber demand in view of reconstruction efforts in Japan. Nonetheless, these counters are not part of the FBM100. Instead, among the FBM100 constituents, media player Media Chinese and Petronas compa...

By OSK Research, Despite relatively strong results from a number of Blue Chips in February, the market still retreated and ended up in the red so far in 2011. Selling was largely attributed to concerns arising from political unrest in the Middle East although we continue to see limited risk if this does not spread to Saudi Arabia. Go out and BUY? Trading Strategy - Buy on Weakness OSK continue to advise investors to Buy on Weakness in the current volatile market with focus on Banks, especially those that have been sold down recently as we still see robust loans growth of 8.5%. OSK also advise trading in Oil & Gas , Construction and Property counters as the news flow should remain good although they caution that profits will likely to kick in only in 2H of 2011. March 2011 Top Buys OSK's top buys did poorly for February, with only 2 stocks matching or exceeding the KLCI namely KPJ and Kencana. For March, as we remain hopeful of a market rebound, we are keeping CIMB , Kencana an...

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...

Being one of the most successful new listing this year, Benalec is consistently closing higher than its IPO price of RM1.00. Listed on the main board of Bursa Malaysia, Benalec was categorized as a construction counter with more than RM1 billion market capitalization. Company Info Incorporated since 1978 Principally involved in the provision of marine construction services mainly in the area of land reclamation and dredging, rock revetment works, shore protection works, beach nourishment, marine piling, and construction of marine structures. Providing vessel chartering on time and voyage charters as well as tow-age services to third parties. Owning a full-service shipyard to carry out any ship repair, ship maintenance, shipbuilding or fabrication works. Owning a large and diversified fleet of 91 vessels Expertise? Benalec strength lies in their ability to operate a 1-stop centre offering Total Service and Complete In-House expertise , ranging from marine construction, marine transp...

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...