Sarawak Election?

A: Make sure you vote right...

B: Wait---my right or your right?

“If BN returned strongly in Sarawak, that will send a very strong signal and the market should rally.” If it (BN) does win with equal or greater number of seats, it should strengthen the possibility of a general election this year with greater optimism of regaining some lost grounds. Either way, it should be positive for the market,” he stressed further.
Reiterating further, Govindan said selection for top picks would be mainly from overweight sectors that included banking, plantation, telecommunications, gaming, O&G, construction, property and gloves. The head researcher was, however, neutral on power, technology, transport, consumer and automotive sectors.
One by one, he said the banking sector would reap the benefit from the still ‘healthy’ consumer and business demand for loans, thriving capital market, as well as it being the prime beneficiary of the Economic Transformation Programme (ETP) due to funding needs.
“Meanwhile, plantation will benefit from high crude palm oil (CPO) prices that are likely to average RM3,400 per tonne for the year, due to robust ‘supply-and-demand’ dynamics and speculative flavour as hard and soft commodities are benefitting from the ample liquidity in the global financial system – thanks to various quantitative measures and bailouts in the US and Europe.
“Telco and gaming will ride on robust consumer demand and higher foreign earnings contribution. The ‘twin’ construction and property will reap the benefit from domestic expansion, while glove manufacturers are expected to make a comeback with potential easing in latex prices and strong demand,” he explained.