What to expect in the market in 2012


With almost a quarter of 2012 gone and the slow moving market in 2011, what could you expect for the rest of this year? Analysts believe that volatility will continue through the year coming in from 2011 largely due to the problems plaguing the economies of Europe and the United States and if you are expecting a bullish year, this might not be it.

If you are planning to invest in shares this year, the most ‘stable’ ones would be those which are either directly or indirectly linked with governmental projects and efforts. This is where you can look at the ETP (Economic Transformation Programme) where companies like Gamuda and IJM have already garnered projects and their shares could be money well invested. Apart from that, you can also consider the likes of Berjaya Sports Toto which is the gaming arm under the Berjaya Group where operations are always expected to be stable and grow as demand is always there.

Retirement of Berjaya Group’s CEO

On the context of Berjaya Group, you might want to pull some brakes and take a reactive approach after the recent retirement of Tan Sri Vincent Tan from active corporate duties and taking over the helm would be his son Datuk Robin Tan. They might be appointing a new chairman soon and you should wait for news of that before investing in BCorp shares.

Genting under Tan Sri Lim Kok Thay

And there are the Genting and Kencana shares which are expected to perform pretty well this year. Genting as you might have known have been constantly growing under Tan Sri Lim Kok Thay and their shares have been steady all the while. Kencana Petroleum on the other hand could see some strong performance with its merger with SapuraCrest.

Airline shares might be too volatile to invest and with Malaysian Airlines reporting a record loss year, many would be adopting a wait-and-see approach to see how they want to consolidate their position. The swap deal with AirAsia has not done them much good either. AirAsia on the other hand announced the slashing of some routes that include London and Paris and this could cause some negative impacts on its prices and again, the share-swap deal with MAS does not seemed to be bearing any fruit as yet.

Spill Effect from America’s Economic problem

So what can you expect in the next coming months? To begin with, you can expect the economic problems in Europe and United States to continue which might lead to further problems in the EU. The debt crisis might just continue and could get worse this year. Back in home soil, the most talked about issue would be whether the general elections might be coming around.

Anticipation of the polls has caused many to hold back their investments due to uncertainties. Whoever wins the election will have a large effect on the economy. If BN retains power, the shares of companies involved with the public projects would surely strengthen and if BN retains but loses some major states, then the consequences might be many. So hold back and take a deep breath before making any plunges this year.