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List of Stocks To Look Out For After PH's Win

Updated 19 Jun 2018 – By Loanstreet


Pakatan Harapan's stunning triumph over Barisan Nasional during the 14th General Elections brings about celebrations and plenty of uncertainty. When the stock market reopens on Monday after a three-day break, it's safe to say that everyone will be bracing themselves for plenty of volatility. Mahathir Mohamad, in his first statement as the newly elected Prime Minister of Malaysia, assures the people that he’d "lead a business-friendly administration and seek ways to boost Malaysia’s stock market".

Setting aside the temporary volatility, here's some pick of stocks to look out for over the coming days and why:

 

1st Tier Winners

Companies owned or linked to Mahathir Mohamad and family. These are some of the hottest shares right now as previously, Mahathir's family had fallen out of favour with the then-ruling government and one of these companies had even been raided by the Inland Revenue Board (IRB). Remains to be seen whether these companies will receive preferential treatment, as what rumours once claimed.

1. Opcom Holdings Bhd - Manufacture of fiber optic cables and cable related products. Mokhzani Bin Mahathir is on the board of directors.

2. Petron Corporation - Oil refining and marketing company. Mirzan Bin Mahathir is on the board of directors.

 

2nd Tier Winners

Companies owned or linked to associates of Mahathir Mohamad. These are just some of the companies that may stand to benefit (read: they've all been known at one point to be cronies of Mahathir) unless those days are well and truly over.

1. Eden Inc Bhd - Business activities include Food & Beverage and Tourism, to Energy and Manufacturing Sector. Fakhri Yassin Mahiaddin, son of former deputy prime minister Tan Sri Muhyiddin Yassin, is linked to this company. 

2. Thriven Global Bhd - Focuses on all aspects of property development with emphasis on branded residential products for the middle-market. Also linked to Fakhri Yassin Mahiaddin.

3. Berjaya Assets Bhd, Berjaya Corporation Bhd, Berjaya Food Bhd, Berjaya Land Bhd, Berjaya Media Bhd & Berjaya Sports Toto Bhd - Owned by Tan Sri Dato' Seri Vincent Tan Chee Yioun, who enjoys close ties with Mahathir Mohamad.

4. Atlan Holdings Bhd - Investment holding and the provision of management, financial, technical and other ancillary services. Major shareholder is Tan Sri Dato' Seri Vincent Tan Chee Yioun.

5. Bermaz Auto Bhd - Distributor of Mazda vehicles & spare parts. Major shareholder is Tan Sri Dato' Seri Vincent Tan Chee Yioun.

6. REDtone International Bhd - Provider of integrated telecommunications and digital infrastructure services for organisations. Major shareholder is Tan Sri Dato' Seri Vincent Tan Chee Yioun.

7. YTL Corporation Bhd, YTL Hospitality REIT, YTL Land & Development Bhd & YTL Power International Bhd - Among others, is an integrated infrastructure developer and is amongst the largest companies listed on Bursa Malaysia. Owned by Tan Sri Dato' Sri (Dr) Yeoh Tiong Lay (deceased), taken over by his son Tan Sri Dato' (Dr) Francis Yeoh Sock Ping.

8. Maxis Bhd - Engages in the provision integrated telecommunication services. Close ties between Ananda Krishnan and Mahathir Mohamad. 

9. MMC Corp Bhd - Utilities and infrastructure Group with diversified businesses under three divisions: ports & logistics, energy & utilities and engineering & construction. Owned by Tan Sri Syed Mokhtar Albukhary, known to be one of Mahathir's close associates.

10. Malakoff Bhd - Leading independent water and power producer. Owned by Tan Sri Syed Mokhtar Albukhary.

11. DRB-Hicom Berhad - Has dealings in the automotive industry; services and education industry; property, asset and construction. Interesting point to note: DRB-Hicom owns a 49% stake in Proton Holdings Bhd, famously known as Mahathir's "brain child". Owned by Tan Sri Syed Mokhtar Albukhary.

12. Country Heights Holdings Berhad - Property conglomerate that primarily focuses on property development and investment holdings, with subsidiaries involved in diverse industries such as health, hospitality, membership & tourism and education. Owned by Tan Sri Lee Kim Tiong @ Lee Kim Yew, close friend of Mahathir's who reportedly lent his private jet to Mahathir when others refused to do so and was also a vocal critic of Najib Razak.

1st Tier Losers

Companies owned or linked to Najib Razak and family. These are probably the stocks to avoid since that family isn't exactly the most popular kid on the block anymore.

1. Sersol Berhad - Paints, coatings and industrial chemicals manufacturer. Najib's son, Mohd Nazifuddin Najib, is a substantial shareholder of SerSol with a 21% stake.

2. CIMB Group Holdings Berhad - Leading KL-headquartered ASEAN universal bank, one of the largest investment banks in Asia and one of the largest Islamic banks in the world. Chaired by Najib’s brother, Nazir Razak. Interestingly enough, he spoke out against his own brother, lamenting on "the failure of past governments to overcome structural rigidities and vested interest".

 

2nd Tier Losers

Companies owned or linked to asociates of Najib Razak, and will most probably see their shares take a hit.

1. George Kent Malaysia Bhd - Water services and water works products as well as water infrastructure projects; ventured into rail transportation and healthcare sectors. Tan Sri Dato’ Tan Kay Hock, who sits on the Board of Directors, is close friends with Najib (friendship dates back to more than 25 years).

2. WCT Holdings Bhd - Investment holding company with an investment in two main subsidiaries, WCTB and WCT Land Sdn Bhd which are primarily involved in engineering and construction, property development and investment & management activities. Tan Sri Desmond Lim Siew Choon, good friend of Najib Razak and Rosmah Mansor (recently housed them in his Pavilion Residences), sits on the Board of Directors.

3. Malton Bhd - Deals in property development, construction and project management. Tan Sri Desmond Lim Siew Choon sits on the Board of Directors.

4. MyEG - Linked to Wong Thean Soon, who was reputed to have very close ties to the previous administration. Heavily dependent on favorable and exclusive government concessions.

5. Excel Force - Another company linked heavily to Wong Thean Soon of MyEG. Rumored to have been awarded contracts for an alternative trading system by the previous administration.

 

Others That Will See Heavy Trading

These are just some of the well-known companies with political ties (i.e. previous and current ruling parties). Keep an eye out for these stocks as they might be generating trading interest.

1. Star Media Group Bhd - Government-owned (MCA) mouthpiece media; may see its stocks take a hit.

2. Utusan Melayu (M) Bhd - Government-owned (UMNO) mouthpiece media; may see its stocks take a hit.

3. Media Prima Bhd - Media-related businesses including in Television, Print, Radio, Out-of-Home, as well as Content and Digital Media. Datuk Kamal bin Khalid, who is on the Board of Directors, was previously in charge of the communications unit in the Prime Minister’s office. May see its stocks take a hit.

4. AMMB Holdings Bhd - One of the largest banking groups. What makes this stock one to watch out for is the slew of 1MDB scandals tied to it: Najib's account in AmBank was found to have the RM2.6bil (2014 exchange rates) deposited in it; the Group was slapped with a RM53.7mil fine by Bank Negara in 2015 presumably for non-compliance of certain regulations related to 1MDB; it issued 1MDB's first bond worth RM5bil in 2009. Above all, its founder, Hussain Najadi (of Persian origin), was suspiciously murdered. Need we say more?

5. Malayan Banking Berhad - Another giant in the banking industry. Owned by the government through three main shareholders: ASB, EPF and PNB. Shares expected to be affected due to Pakatan Harapan's promise to review mega projects which might affect the issuance of bonds.

6. Alliance Bank (M) Bhd - Banking group that's been linked to Tun Daim Zainuddin via privately-held Langkah Bahagia Sdn Bhd. Most notably, Daim was recently expelled from UMNO for voicing his support for Pakatan Harapan during the general elections. Stocks might rise considering Daim's political ties, in addition to his good ties with Temasek Holdings, a Singaporean investment arm.

7. Supermax Corporation Berhad - Latex glove conglomerate. On the board of directors sit Tan Sri Rafidah Aziz and Dato' Seri Stanley Thai Kim Sim. The former is a vocal supporter of Pakatan Harapan, the latter was forced to issue a formal apology to Najib Razak for getting involved in campaigning for Pakatan Harapan. May see its stocks rise.

8. IJM Corp Bhd - Property developer. Founder, Koon Yew Yin, donated RM50mil to the Penang government to help provide student hostel accommodations. Pakatan Harapan will launch comprehensive reviews into mega projects, thus construction stocks will come into the limelight.

9. Gamuda Bhd - Engineering, property and infrastructure company. Also founded by the tycoon Koon Yew Yin. Another one of the construction stocks that will come into the limelight, especially due to it being a part of the tender relating to the HSR project.

10. Malaysian Resources Corporation Berhad - Company dealing in Property Development & Investment, Engineering, Construction & Environment, as well as Infrastructure & Concession. Not only is this another construction stock that was a part of the tender relating to the HSR project, it's a government-linked company with the EPF as a significant shareholder.

11. Destini Bhd - Integrated engineering solutions provider that has major interests in the aviation, marine and oil and gas sectors. Owned not only by Datuk Rozabil Abdul Rahman who is a member of UMNO, but also by the Ministry of Finance with a 17.3% stake. With PH wanting to review mega projects given to foreign countries, they may stand to benefit from local contracts, given that they're currently completing a RM62mil job from Keretapi Tanah Melayu Bhd.

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