Now is the time to take up position on Bursa Malaysia

KUALA LUMPUR June 15 - Although Bursa Malaysia crashed to its lowest on Monday, investors however should not despair.

It is true that some traders would have lost huge amounts of money but fret not - the losses could be regained in the next few months.

This is because even though prospects look so dim, the market will surely brighten up due to some of these factors.

General elections looming

Speculation is rife that the upcoming 15th general election is looming near.

The pre-budget announcement by the Finance Ministry last week hinted that the general elections is indeed around the corner.

Some political analysts such as expect it to be as early as the end of this year.

Thus now is a good time to invest in cheap penny stocks and bet that it will surge in the next few months ahead of the polls.

The stock market can't go wrong. It has been proven in the past that the FTSE Bursa Malaysia Kuala Lumpur Composite Index will appreciate ahead of any general elections and continue to climb after the Chinese New Year.

Technology stocks will continue to be robust

It is a known fact right now that there is a shortage for microchips worldwide.

Demand for smartphones, tablets and gadgets continue to skyrocket all over the world as the continue lapping up the microchips to feed the internet hungry millennials.

The electric vehicle industry also continues to thrive in the world sucking up as much semi-conductors that it can.

Thus, investors may want to park their money in the sector and there are a few semi-conductor firms which are burgeoning.

Construction sector continues to whimper

The construction sector has been very muted for the past few years probably because of the pandemic.

But who knows? Maybe the administration of Prime Minister Datuk Seri Ismail Sabri Yaakob might announce the construction of a new MRT line or the revival of the high-speed rail to Singapore.

If this happens, construction stocks will rebound for sure.

So always keep construction stocks in the radar. Never say never.

Stay away from oil and gas and plantation counters for now

Respectfully to the sectors, traders should stay away from the oil and gas sectors and plantation counters for now.

Realistically, investors have missed the boat now that oil is soaring at above US$100 per barrel.

Likewise, plantation stocks should also be given a miss for now as crude palm oil prices have reached an all-time high of RM8,000 a tonne last month.

Investors wishing to invest in oil and gas and plantations should wait till the prices of both commodities soften before going in.

However, this recommendation comes with a disclaimer as anything can happen to oil and crude palm oil prices.

Retail, tourism stocks on the roll?

As the borders reopen and almost all Malaysians are vaccinated, there is a possibility that retail stocks might pick up.

Shoppers are beginning to flock malls in droves and social and gastronomical activities at restaurants are on the rise.

Tourism activities are rebounding and may even be handicapped as there are reports of workers' shortage at some hotels.

Tourism related counters may catapult once again.

Aviation sector may fly high

As expected, the aviation sector may cruise proudly as Malaysians and international tourists take up to the skies once again.

Aviation-related stocks, although a bit late, can still spike due to complaints by Netizens of flight delays hogging social media.

So even though Bursa Malaysia dived to 1,464.83 points earlier this week, it's lowest in almost 20 months due to fears of a possible global recession, there is however money to be made.

Investors should take up positions right now so that they can reap their profits when rumblings on the dissolution of Parliament begins to take shape.

As the saying goes - one man's misfortune is another man's boon.

So whichever way, there is money to be made on the stock market. - DagangNews.com