Versus the CI

Resorts World: THIS stock is a must for investors that want to outperform the market. It has gained RM1.40 or 16% since Nov 14 last year, and outperformed the KLSE Composite Index by more than 10%. The group's strategy to turn the decades-old hilltop casino into a modern entertainment and holiday destination is a story that sells well. Resorts' continuing efforts to expand and improve its facilities augur well for its future earnings growth. The group is expected to spend RM300mil to add 3,000 new hotel rooms. 

KLSE Plantation Index: GIVEN the strong crude palm oil (CPO) price, plantation stocks are rated “overweight” or “outperform” by analysts, particularly now when earnings visibility is rather low among other industries. However, the KLSE Plantation Index has been under-performing the KLSE Composite Index by about 4% the past three months. This may indicate that interest in plantation stocks was not growing despite the positive earnings outlook forecast by analysts. Nevertheless, the war factor also deterred interest in equities. 

AMMB Holdings: THE banking stock fared poorer than the KLSE Composite Index by more than 10% in the past three months, its share price sliding 9% since Nov 14. The stock is trading at a 30% discount to its banking peers, and 40% to its post-crisis historical average. But analysts are not upbeat about the counter because they consider AmFinance Bhd a better choice for exposure to the banking group. OCBC Securities expects the potential privatisation of AmFinance to be the main catalyst for the share price performance. 

Telekom: MULTEX Global Estimate indicates the majority of investment analysts, including Credit Suisse First Boston and UBS Warburg, do not favour the telco giant in view of limited earnings growth in the fixed line business and expectations of a delay in the merger with Celcom Bhd. Besides, mobile service provider Maxis Communications Bhd offers a better alternative for exposure in the telco sector and the CI. Somehow, the heavyweight gained 10% during that period, and outperformed the CI by 8% in the past three months. 

Unisem: THE light at the end of the tunnel remains dim. Unisem failed to ride the recent rebound in the KLSE. The industry has recovered from its worst downturn, but has yet to see healthy growth in demand. Unisem, which had under-performed the CI by as much as 20% in the past three months, tumbled to a more than four-year low of RM5.75 yesterday. Unfavourable figures released by MPI Bhd, indicating the company might miss its annual earnings forecast, accelerated the downtrend in both MPI and Unisem. 

KLSE Plantation Index: GIVEN the strong crude palm oil (CPO) price, plantation stocks are rated “overweight” or “outperform” by analysts, particularly now when earnings visibility is rather low among other industries. However, the KLSE Plantation Index has been under-performing the KLSE Composite Index by about 4% the past three months. This may indicate that interest in plantation stocks was not growing despite the positive earnings outlook forecast by analysts. Nevertheless, the war factor also deterred interest in equities. 

AMMB Holdings: THE banking stock fared poorer than the KLSE Composite Index by more than 10% in the past three months, its share price sliding 9% since Nov 14. The stock is trading at a 30% discount to its banking peers, and 40% to its post-crisis historical average. But analysts are not upbeat about the counter because they consider AmFinance Bhd a better choice for exposure to the banking group. OCBC Securities expects the potential privatisation of AmFinance to be the main catalyst for the share price performance. 

Telekom: MULTEX Global Estimate indicates the majority of investment analysts, including Credit Suisse First Boston and UBS Warburg, do not favour the telco giant in view of limited earnings growth in the fixed line business and expectations of a delay in the merger with Celcom Bhd. Besides, mobile service provider Maxis Communications Bhd offers a better alternative for exposure in the telco sector and the CI. Somehow, the heavyweight gained 10% during that period, and outperformed the CI by 8% in the past three months. 

Unisem: THE light at the end of the tunnel remains dim. Unisem failed to ride the recent rebound in the KLSE. The industry has recovered from its worst downturn, but has yet to see healthy growth in demand. Unisem, which had under-performed the CI by as much as 20% in the past three months, tumbled to a more than four-year low of RM5.75 yesterday. Unfavourable figures released by MPI Bhd, indicating the company might miss its annual earnings forecast, accelerated the downtrend in both MPI and Unisem.