Monday, September 2, 2013

CIMB Research: Accumulate MRT related stocks

From The Star Online: Business
2nd Sep 2013

KUALA LUMPUR: CIMB Equities Research is advising investors to accumulate stocks with Mass Rapid Transit (MRT) exposure as re-rating could be in store once the government announces projects for execution in the medium term.

“Share-price corrections triggered by news of likely project sequencing offer a good entry point, in our view, especially for our top pick, Gamuda, which has fallen due to its high foreign shareholdings and liquidity,” it said on Monday.

CIMB Research said the MRT falls into the category of projects with the highest economic impact and least import content.
“We believe the project could be revived after the announcement of Budget 2014 and UMNO elections in October,” it said.
It added the possibility of MRT 2 approval by December 2013 is good. The government's planned announcement on Monday will touch on the status of mega-jobs in the pipeline.
“Maintain Overweight with catalysts expected from the above and Gamuda as our top pick,” it said.

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