Malaysia's Bull Run Still Largely Ahead - Barron's

Includes: EWM, MLYBY
by: Judy Weil

Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:

Malaysia's Run Looks Far From Over by William J. Holstein and Assif Shameen

Summary: A new leader, loosening government financial controls, higher commodity prices, strong GDP growth along with political trouble in Thailand and frothy Chinese stocks have made Malaysia an attractive market. Malaysia's Bursa is up 26% in dollar terms, or 13% in 2006 and 20% in 2007 without the currency effect. Hedge funds betting on weaker dollars and stronger Asian currencies believe Kuala Lumpur's potential lies ahead. U.S. investors can buy Barclays' iShares MSCI Malaysia Index (NYSEARCA:EWM) and the soon-to-be-accessible Tan's Pheim Asset Management, through Merrill Lynch. Local plays include Sime Darby, a Bear Stearns Overweight pick, a play on Malaysia's bountiful palm oil (a biofuel alternative to Europe's ethanol-poor landscape). Bear Stearns also likes Gamuda, a toll road and tunnel builder. Construction firm IJM and pipeline coating maker Wah Seong are globally active companies. National utility Tenaga Nasonal and Malayan Banking (OTCPK:MLYBY) benefit from easing foreign investment rules and corollary foreign capital inflow. Barron's also likes international gaming company Genting, but cautions against national automaker Proton Holdings.

Related Links: iShares Asia Region ETFs Weekly and YTD ReturnsInternational ETFs Continue To SurgeInternational ETFs: Hong Kong, Malaysia, Singapore Overbought; Canada, India, S. Korea OversoldNew Development Plans Send Malaysia's ETF Soaring

Other Sources: Malaysia Economic OverviewMalaysia Government Information and Policies

EWM 1-yr. chart:

EWM Investment

About this article:

Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here