Malacca Securities Sdn Bhd said that it likes export-related sectors such as technology, plastic, plantations.
In its 1Q outlook and strategy said that it was looking for themes within the domestic driven economic activities which may bode well for telco, construction, building materials, consumer, automotive, and healthcare sector.
The stockbroking house said that it added that it avoids the aviation sector.
It said that it believes the concerns over the pandemic persist as the Omicron variant continues to take the centre stage on the news media.
It said that there is a wild card in 2022 – the GE15, which the timing is unknown may pose some unwanted slowdown in trading activities.
On the domestic driven activities and exports to be focused, it said that closer to home, the international borders are not fully reopening yet amid uncertain Covid-19 situation following the emergence of Omicron cases.
Hence, it said that it is likely to notice the uneven growth rate between various sectors going forward. Malaysia will still rely on exports and domestic economic activities, while growth in aviation and tourism sectors may propel once the travel borders are reinstated.
GDP to grow at positive rate. In 2020, Malaysia’s GDP contracted -5.6% YoY. Based on Bloomberg consensus, Malaysia’s 2021-2022 GDP is projected to grow at a rate 3.5% and 5.7%, respectively. Meanwhile, MOF projects Malaysia’s 2022 GDP to grow at 5.5-6.5% in 2022.
