As sectors that involve higher government intervention or companies whose affiliation with the government will invariably be affected by investors’ sentiment regarding the outcome of the general election, these are the five stocks to keep an eye out for the 14th General Election slated to be held sometime this year.
This is not an endorsement of these stocks, but rather for you to observe their movements for the fun of it.
Utusan Melayu (Malaysia)
The publishing company, whose significant shareholders include the United Malays National Organisation (UMNO), which was holding 49.77% of shares according to its 2016 annual report, publishes Utusan Malaysia and holds sway in news dissemination through its high circulation rate among its key demographics: readers of Bahasa Malaysia newspapers.
According to the report, the circulation for Utusan Malaysia was 144,438 copies per issue, while 182,022 copies per issue were achieved for Kosmo, the group best-selling Malay-language daily. The group also publishes Berita Harian and Harian Metro.
Felda Global Ventures
Felda Global Ventures (FVG) is the public-listed, commercial arm of the Federal Land Development Authority (FELDA), a social engineering project created to eradicate poverty among the rural poor through the resettlement programme and the cultivation of cash crops such as oil palms.
They are seen as a vital cog in the machine of Barisan Nasional (BN) as these rural settlers form significant voting blocks in many rural constituencies. In the paper published by ISEAS–Yusof Ishak Institute, it is said that these FELDA settlers hold sway in almost a quarter of the parliamentary constituencies (54 out of 222) in a heavily rural-biased electoral system, and that they have been voting overwhelmingly for UMNO-BN.
MyEG is a concessionaire for Malaysian Electronic-Government MSC Flagship Application. According to its website, it builds, operates and owns the electronic channel to deliver services from various government agencies to Malaysia citizens and businesses.
Based on a recent Bursa Malaysia filing, its executive director Dato’ Raja Munir Shah Raja Mustapha, formerly Penang UMNO information chief, has ceased to be the company’s substantial shareholder. The person who acquired Raja Munir’s interest in the company was Dato’ Dr Norraesah Haji Mohamad, its executive chairperson and formerly a member of UMNO Supreme Council from 2000 to 2013, according to Reuters.
According to its website, the company has been in the water infrastructure, water works and services business since its founding in the 1930s, however, it was its rail engineering projects that helped make it into the news.
For LRT3, running from Bandar Utama to Johan Setia, the consortium led by George Kent became the project delivery partner ahead of more experienced builders such as MMC Corp and Gamuda. Meanwhile, it has teamed up with the Siemens Group to bid for the Kuala Lumpur-Singapore high-speed rail tender.
The company is better known for supplying identification chips of passports, identification cards, bank cards and is certified by EMV. It was fundamental to the implementation of MyKad in 2001 as well as being the pioneer of the world’s first electronic passport. Those were the days, however, as the group has since been losing out to its domestic competitor Datasonic to supply chips to our passports and Mykad in recent years.