Written by Hwang DBS Vickers Research
Thursday, 11 February 2010 08:44
KUALA LUMPUR: Hwang DBS Vickers Research expects the Tiger will carry the seed of the fire element (a symbol of the stock market) in 2010, according to the celestial readings.
In its strategy report issued on Thursday, Feb 11, it said the Tiger's presence could, consequently, drive up share prices in sporadic bursts and drive them down again when the Tiger is exhausted and grabs its profits.
"That means everything will likely be fast and furious this lunar new year, hence, better keep your fingers on the pulse. Blink and you could miss the chances that come your way," it says.
Here's HDBSVR outlook in the Year of the Tiger:
To seize these golden investment opportunities, it may be wise to engage the tiger.
Learn to be gutsy but not reckless. Invest with passion and self-belief but avoid over-confidence. Take heed of natural instincts, be prepared to pounce at any moment and change course suddenly, as tigers do when they are on the prowl.
Watch out for pitfalls on jungle trails and be ready to bounce back for fresh challenges.
Overall, the Year of the Tiger may end tamer than the start amid increased volatility.
Lucky industries
The metal element of 2010 is expected to lift fortunes of the fire and earth industries. This is because metal is considered a symbol of money to the fire industry, while earth produces metal (according to the cycle of birth and destruction) which then brings activities to the earth
industry.
Thus, favorable businesses to be in during the tiger year – according to Chinese soothsayers – are industries with the following elements:
(a) Fire – which include stock markets, energy and airlines;
(b) Earth – such as CONSTRUCTION [] and property sectors; and
(c) Metal – like banking / financial and steel sectors.
8 prosperity stock picks
Blending fundamental merits and celestial inspirations, we will also play the fortune telling game by choosing eight stocks that we believe will prosper in the Year of the Tiger.
From a top-down approach, our best bet in the energy sector is Tenaga (TP: RM10.00). In construction, we like IJM Corporation (TP: RM6.00) and MRCB (TP: RM1.80), which
double as property plays.
Also offering excellent property exposure is SP Setia (TP: RM4.80). For a banking proxy, we choose CIMB (TP: RM15.20), while Kinsteel (TP: RM1.30) is our choice in the steel industry.
Elsewhere, Parkson Holdings (TP: RM6.30) must have learnt from the tiger that it pays to be farsighted, as the Group has followed the tiger’s hunter instinct to venture out early and set its footprints in the retail space in China, Vietnam and Malaysia.
Last but not least, Genting Malaysia (TP: RM3.70) resembles a tiger on the prowl, ready to pounce on any opportunity to buy related businesses for acquisition-led growth using its huge RM5b war chest.