Stocks to keep an eye on (Najib's Counters)

We have done a screen of stocks which we believe traders and investors should keep an eye on as the guards change in Putrajaya. We continue to like MRCB (MRC MK-RM0.87-BUY) and IJM (IJM MK-RM4.02-BUY) as they stand to benefit from the government’s fiscal spending ahead. Furthermore, CEO of MRCB Shahril Ridzuan was hand-picked to be one of the pioneering members under the government’s GLC reform initiatives. As for IJM, ultimate parent is MMC Corp (MMC MK-RM1.41-N-R), whose major shareholder is Syed Mokthar Albukhary, who many believe will remain in the inner circle. Both MRCB and IJM have Employees Provident Fund (EPF) as their single largest shareholder.

We remained cautious on the banking sector given the cyclical downturn ahead, but Bumi-Commerce (BCHB MK-RM6.55-SELL) will continue to draw interest from long term investors. Despite concerns on withdrawal of Middle Eastern investments in Iskandar Malaysia, another favourite amongst traders is UEM Land (ULHB MKRM0.75- N-R). (ext: EdgeDaily)