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5 Best Stocks To Invest in M’sia This New Normal

BY Faiz Rahim

Updated 11 Dec 2020




It's without a doubt that this current time (with an unstable economy and pandemic combo), it'll have effects on the country’s stock market. That’s why when the MCO first started in early March 2020, Bursa sunk to its lowest in a decade and fell 20.52%. If you guys must know, that's low, especially after the 2009 financial crisis. You guys can peep at the image below to see the trend...
 

Source: Trading Economics


Many local companies also have recorded relatively lower revenue in the first quarter of 2020 - which it’s understandable with the pandemic and everything that's been going on. You must have been thinking that all of these are a lot of damage, right? Exactly… 

As we're in the midst of economic recovery and a pandemic, many investors couldn’t help but feel cautious in their every move. We definitely couldn’t help but agree because the stock market will remain volatile for the unforeseeable future - especially as the pandemic is still ongoing.

Thus, brings the question we all have been thinking, what stocks that investors need to watch out for in this new normal? Most importantly, which stocks may be able to gain profits and vice versa in this pandemic?

ALSO READ: 7 Financial Jargons You Should Know

 

What's covered in this article?


But first...

We need to know what are the industries that are gaining in the new normal? How about industries that are losing? Are you guys ready? If ready, say aye!
 


Industries that are gaining: Healthcare, technology & energy

Several industries that are booming since the spread of Covid-19 and one of them is healthcare industries. As expected - this industry has been leading the rally due to their products being essential untuk lawan against Covid-19 pandemic. 

Other than that, there also has been a rise in the technology sector. This is because more consumers have turned to online platforms to get their household food necessities and products. Just like investors, consumers are now more careful and cautious in their daily activities - with social distancing and all.

Energy counters also have been on a rise following the Budget 2021 tabling. Ya lah, with RM200 rebate for energy-efficient products, for sure more will purchase it. It seems like some investors don’t want to be left behind.
 

ALSO READ: 5 Things To Invest In During A Recession
 

Industries that are losing: Tourism, aviation & consumer goods 

Some companies will face troubles in these times. Especially as they couldn’t do business as usual (but, what to do?) and therefore doesn’t bring in much profit. 

For industries like tourism and aviation, they're actively trying to restart their business. That’s why the next 6 to 12 months are important untuk tengok whether these companies can make it or not especially Malaysians can now travel domestically - no ban on interstate travel anymore.

 

Okay, now let’s see the stocks that are gaining profits and the ones that don’t in this new normal...You can see from the trends in the following images which are gaining and losing stocks to watch out for!

 

5 stocks that are gaining…

1. Scientex Berhad 

 

2. Hartalega Holdings Berhad

  
3. Solarvest Holdings Berhad

 

4. Hengyuen Refining Company Berhad

 

5. Frontkent Corporation Berhad 

 

As for 5 stocks that are losing…

1. Malaysia Airports Holdings Berhad 

 

2. Nestle (Malaysia) Berhad

 

3. Heineken Malaysia Berhad 

 

4. Airasia Group Berhad

 

5. Top Glove Corporation Berhad



NOTE: Top Glove has seen the positive and negative sides in the same year. After riding high with surging demands earlier this year, their share prices have fallen tremendously since 13 October. And, it’s not due to their performance - it’s because of a Covid-19 cluster full of their workers which later led to a shutdown for a majority of their productions 

 

So, what’s next for investors?

When it comes to prospects, nothing is quite certain. The stock that you've might be trending at the moment might fall in the future or worse, tomorrow (which is scary k!). 

After all, investment is tricky and risky even if you decide to buy and hold it. As we all know, to be a great and successful investor, one needs to have great decision-making skills. 

Therefore, if you're an investor, what's your process? Do you analyse each decision carefully before making one or not? Do you've anyone that can advise you? If you’re about to invest, have you educated yourself on everything related to investing and the stock market? To help, we suggest you read this article to learn more about being an investor in the new normal (and pandemic).

 

 

You guys (especially new investors) should definitely take note yang nothing is certain in the stock market. It means that just because your stock had a good morning, it doesn’t mean that your stock will have a good evening. 

Hence, it's very important to be hyper-alert and vigilant of your investment. If you’re not careful, you might end up losing all of your investment (it can go kaput - just like that!). Trust us, nobody wants that.


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About the Author

Faiz Rahim



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