KUALA LUMPUR: The big 2-0-1-6 that will soon come to pass may be ushered out with a hearty 'good riddance' by many investors, as the equities mart have been nothing short of challenging to tame these last 12 months, even for the most seasoned guru.
But the upcoming 2-0-1-7 doesn't look like it will provide any less difficult a ride, as 'uncertainty' remains the buzzword.
At the very least -- aside from the risk of more aggressive US Federal Reserve rate hikes due to higher inflation and growth expectations at ole Uncle Sam's -- there are several world events, including upcoming elections in several European countries, that may see the anti-EU sentiment spreading further, what with the UK having gone with the Brexit.
Domestically, some also view more potential uncertainties are in the offing, if one were to take four little words -- "could come anytime soon" -- from Prime Minister Datuk Seri Najib Razak on the 14th GE at the recent Umno General Assembly, as hints that the big voting exercise may be just around the corner.
Regardless, not everything is in shades of grey and there are still bright spots one can look forward to next year, which is why several The Edge Malaysia writers have put together the 'Top 12 Stock Picks for 2017' for the publication's cover story for the week of Dec 26, 2016-Jan 1, 2017.
Having spoken to fund managers and research houses, the paper noted that plantation is one sector that is starting to look interesting again after the unexpected rebound in crude palm oil prices recently.
"According to Inter-Pacific Securities head of research Pong Teng Siew, this is a good time for CPO as prices tend to move up between November and March because of low output," the weekly wrote.
“Plantation is a long-term play. Look out for planters with young trees because that is where you will see growth in output,” Phillip Capital Management chief investment officer Ang Kok Heng was also quoted as saying.
The construction sector also continues to be worth watching, with more mega projects still to be implemented over the next two years, like the East Coast Rail Line, the Kuala Lumpur-Singapore high-speed rail, the RM30 billion Melaka Gateway trading port, the Gemas-Johor Baru double tracking and the remaining work for the mass rapid transit lines 2 and 3. But, margins may be slim, cautioned Etiqa Insurance and Takaful head of research, Chris Eng.
And the weak ringgit isn't all bad news to everyone. Export-oriented counters, for one, are seeing the weak local note making Malaysian goods more competitive, price-wise.
As for oil and gas -- the sector non grata for the past two years -- industry players may be bound for a reprieve with a rebalance of the demand and supply after the agreed production cut among oil producing nations and the Organisation of Petroleum Exporting Countries (Opec).
So, having said all that, what do the experts think are the best picks for the year, and the specific reasons why? Well, pick up a copy of The Edge Malaysia today to find out!
P/S: Here's to a Merry Christmas and a Happy New Year to all our readers. May the new year be kinder than the outgoing one, with more laughs and joys -- as well as good pickings -- in store for all.
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