Skip to content
Learning that drives better investment decisions

Lower Your Risk in Malaysia

Watch the video with Andrew Stotz or read a summary of the country profile on Malaysia.

Four Pillars of GDP: Slight slow down from Q2

Malaysia’s economy is growing relatively quickly at 4.25% in the third quarter but has slowed down slightly from the 4.59% rate in the second quarter of 2016.

Private consumption accounts for about 52% of GDP, and are growing at the highest rate among the four pillars, while net exports remained a drag on growth.

Earnings remain lower in 2016, but hope remains for 2017

Following three straight years of lower earnings-per-share, analysts expect earnings to finally recover in 2017 with and expected growth rate of 5.6%.

Despite the earnings downturn, PE ratios have been sustained due to a dividend yield above the Asia average—about 3%.

Lower Your Risk in #Malaysia

A. Stotz Four Elements: Malaysia’s rank relative to Asia

Overall, Malaysia is moderately attractive in Asia considering all our four elements: Fundamentals, Valuation, Momentum, and Risk.

Fundamentals: Return on Equity remains just below 10%.

Valuation: The Malaysian market sustains a relatively good dividend yield and trades at 1.5x PB, based on 2017 consensus estimates.

Momentum: Malaysia has the worst momentum in Asia.

Risk: The market features the lowest beta in Asia compared with Asia ex-Japan, low volatility and moderate gearing.

All sectors fell in the Q3

Top 3 largest sectors: Financials: 20% of the market. Industrials: 16%. Consumer Staples: 12%.

Best sector & stock: Materials: +0.3% & Petronas Chemicals Group: +2.2%

Worst sector & stock: Telecom: -8.8% & Axiata Group: -21.5%

Are you investing in Malaysia?

If you like our research, share it with your friends.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.