12 October 2014

Budget 2015: Which Stocks to Watch?

After the Budget 2015, investors are bracing for the first trading day tomorrow. Before the opening session kicks off, what's the potential counters should investors focus on? How to relate those counters with Budget 2015 ?

The biggest beneficiaries...
Obviously, one of the biggest beneficiaries was construction sector with the announcements of various highways, MRT and LRT projects. Meanwhile, we can break it down to a few potential counters:

  1. Gamuda:
    Another MRT line from Selayang to Putrajaya with an estimated RM23bil. With its expertise in tunneling works and PDP role of existing MRT line, Gamuda is the favorite to clinch the job again.

  2. Bina Puri, Sunway and TRC:
    These are another few companies which already clinched some construction jobs for current MRT or LRT projects. The new line announced would definitely benefiting these counters, since they already have the experiences and also cost advantages.

  3. IJM:
    When mentioned about the RM5bil West Coast Expressway (WCE) project, automatically IJM will comes into the picture.

  4. Huayang and Sentoria:
    These two companies which involves in the building of affordable houses should benefiting from the PR1MA and various affordable housing scheme.
Other than construction sector, consumer sector also benefiting given the expanding lists of items being exempted from GST...
  1. QL Resources
    The largest egg producers in the country would benefited after eggs was being listed as GST exempted item.

  2. Nestle
    The largest food and beverage company would benefited after cocoa powder and coffee powder being GST exempted also.
How about the RM150mil financial assistance to SMEs for the purchase of accounting software? Yes...
  1. Censof, YGL and IFCA MSC
    These are the major GST related software providers in the country. The latest financial assistance provided may speed up the enrollment process for SMEs to be GST registered companies, hence the need for such software.
With RM2.7bil going to spend within 3 years to further boosting the high-speed broadband services in the country, these two counters should be more than happy to heard the news:
  1. Redtone
    Extensive track record in implementing and laying of under sea cables.

  2. OCK
    The standalone telecom towers owner with extensive experience in building and maintaining telco towers. As announced, 1,000 new telco towers will be build.

That's it for all the beneficiaries of those good news. Wait...
Some counters may also benefiting purely because there is NO bad news being announced.

  1. BAT
    The tobacco counter will smile in relieve simply because absence of duty hike as anticipated by many analysts.

  2. Carlsberg and GAB
    These brewery counters also will smile after escaping from another round of duty hike. Moreover, the government efforts in promoting tourism industry seen as a positive news too.

Happy Trading...

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