KUALA LUMPUR (Dec 16): Public Investment Bank Bhd Research said Malaysia’s investment proposition for 2020 appears to be better than what it is in 2019.

In a strategy note today, the research house said there are now clear growth initiatives, as unveiled in the Budget 2020 announcement with its positive overtones.

It said the government has stepped up (albeit in targeted manner), with consumers seemingly lacking confidence to spend and businesses appearing reluctant to invest. 

“On the external front, we are now likely to have some semblance of calm following the signing of the phase one deal.

“Near-term conditions still warrant a trading-oriented stance however,” it said.

Public IB said opportunities may abound given obvious market weaknesses but not necessarily going all gung-ho as yet, even as all indications point toward upsides in the market.

“We still think opportunities are more likely in the larger-capitalised names (for the beta play) despite valuations not being particularly cheap.

“Selective exposure to the smaller caps (for the alpha play) remains a must.

“Our year-end 2020 target for the FBM KLCI is 1,680 points which corresponds to about 16.5x multiple 1-year forward earnings,” it said.

Public IB said its stock preferences are AMMB Holdings Bhd, Genting Bhd, Hibiscus Petroleum Bhd, Johore Tin Bhd, Magni-Tech Industries Bhd, Mega First Corporation Bhd, Sarawak Plantation Bhd, Serba Dinamik Holdings Bhd, SKP Resources Bhd and Ta Ann Holdings Bhd.