Market consolidation to spur companies

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UOB Kay Hian Research has opted for companies, which will declare handsome dividends in the upcoming results season, to be its top alpha picks in February.

, whereby the ringgit’s recovery will eventually provide a significant operational cost relief for the latter.

“All five of our alpha picks generated positive returns, with the portfolio gaining 8.6% month-on-month in January, outperforming the FBM KLCI which was down 0.7% m-o-m,” it pointed out. “The market undertone remained cautious presumably due to lingering political uncertainties, with the state election the next test for the unity government.”

This is driven mainly by a meaningful influx of international visitorship to Malaysia and Resorts World Genting.

 

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