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The Ringgit, which has strengthened more than 6% year to date against US dollar, is poised to make further gain. The current strength has helped selected “ringgit-play” stocks to emerge.
However, “ringgit-play” stocks may only short term phenomenon. The stocks that gain the most with strong ringgit is the the companies that imports a lot of raw materials in foreign currency. The companies that depend on export may be turn out to be a loser.
The table below shows sectors and stocks that benefit from stronger ringgit.
| Sector | Stocks |
|---|---|
| Utilities | Tenaga |
| Consumer | Nestle |
| KFC Holdings | |
| Proton Holdings | |
| Telcos | TM |
| Plantation | Kuala Lumpur Kepong |
| Media | Star Publications |
| Media Prima | |
| Steel | Malaysia Steel Works |
The main sector that will become losers with strong ringgit are Electrical and Electronics Exporters and Rubber Glove makers.
Source : OSK Research & UOB KayHian
Related posts:
- Stock Picks – Steel Sector – June 2010
- OSK Steel Sector Stock Picks, Jul 2011
- Stock Picks – Media Sector – January 2011
- Stock Pick – 10 Counters to Watch in 2010
- Stock Pick – OSK 2010 Top 50 Small Cap Companies
- Stock Picks – Oil & Gas Sector – January 2011
- Stock Picks – Steel Sector – September 2010
- OSK Technology Sector Stock Picks, May 2011
- Stock Picks – Construction Sector – October 2010
- Stock Picks – December Outlooks & Top 5 Buys
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