The 10th Sarawak state election should be held this year before its official deadline of 23 July. OSK study the share price performance of 5 Sarawak-based contractors during the 2006 election. They found that their share prices did indeed outperform 6M and 3M before the polls but underperformed 3M after election.
Investors can consider riding on this election play but advised that they lock in gains on Nomination Day, which is usually 1-2 weeks before the actual polls. OSK have a BUY rating on Naim, HSL and KKB while CMS and Zecon are NOT RATED.
The table below are the target price for constructions stocks to look for 10th Sarawak state election.
|Target price (RM)
|Market Cap (RM million)
Source : OSK Research