Pace of GLC divestment likely to pick up after the GE

From Star Online: Business
21st March 2013

PETALING JAYA: Analysts are expecting the pace of divestment in government-linked companies to pick up post-general election.

Maybank Investment Bank Research mentioned this in a report, adding that based on its estimates, the combined holdings of government-linked investment companies (GLICs) in Malaysian equities was at least 35% for the top-100 stocks by market capitalisation and 39% for FTSE Bursa Malaysia KL Composite Index (FBM KLCI)-linked stocks.

Consumer stocks face challenges

By Star Online: Business
7 September 2012

GST and subsidiy review looms

PETALING JAYA: Consumer sector stocks will face challenges following the 13th general election despite having done well year-to-date as the implementation of Goods and Services Tax and resumption of subsidy rationalisation looms.

Alliance Research analyst Ian Wan advises investors to be more cautious as the sector would be facing more challenges regardless of the outcome of the election.

“If the existing Government remains in power post-election, we foresee the Government to implement Goods and Services Tax (GST), resume its subsidies rationalisation programme and raise the electricity tariff to close its budget deficit in 2013. Furthermore, de-rating of the sector could happen post-election as domestic investors return to higher beta plays.