2012 budget is focussing more on the ‘Rakyat’ rather than infrastructure development. OSK see this as being unexciting for the Malaysian equity market. Measures to assist the lower income group include one-off cash payments, the abolishment of school fees and a hike in civil servant wages. Elsewhere, the re-imposition of income tax on shipping companies and the hike in RPGT should hit the shipping and property sectors mildly.
Potential beneficiaries mainly in education, finance and Sin stocks. In terms of beneficiaries, given Budget 2012’s somewhat subdued impact on the broader market, OSK see winners in Brewery & Tobacco companies, which did not get slapped with a tax hike, and education companies given the incentives offered for more schools and vocational training.
Below are the target prices and ratings for top 5 stocks to benefits from 2012 budget..
|Stock||Price (RM)||Target (RM)||Market Cap (RM million)||Rating|
Source : OSK Research