Malaysian stocks primed for future growth

Article Excerpt

Malaysia has an steady track record of economic growth and ranks as one of the most competitive nations among the emerging markets. Its stock market performance remains weak. However, greater political certainty following the the country’s 2018 election should help drive stock market growth. The ongoing reform of state-owned companies and large infrastructure projects will also help fuel gains. Here is an ETF that provides exposure to the top Malaysian publicly traded companies. ISHARES MSCI MALAYSIA ETF $29.99 (New York symbol EWM; TSI Network ETF Rating: Aggressive; Market cap: $454.4 million) invests in publicly listed Malaysian companies. Financial companies account for 35.8% of its assets, while Consumer Non-Cyclicals (13.6%), Utilities (11.1%), Industrials (9.8%), Telecommunication Services (9.4%), Health care (5.7%) and Basic Materials (5.4%) are other key segments. The ETF holds a portfolio of 44 stocks; the top 10 make up 54.3% of its assets. Those top holdings include Public Bank Bhd. (financial services; 14.7%), Tenaga Nasional (utilities, 8.9%), Malayan Banking Berhad (financial services, 7.1%), CIMB…