Straco Corp
Following the near-euphoria towards the end of last year, the stock market is now heading towards a correction phase. Jarick Seet, who heads the small and mid-cap research division of RHB Bank, warns that pullbacks will happen again if Covid-19 infections escalate or new strains appear, as seen in several countries which have had to reinstate movement restrictions. He adds that a drag may also come if the efficacy of the vaccines turns out to be not as good as has been advertised.
Nevertheless, Seet expects the uptrend to continue, led by growth in the semiconductors sector and recovery in tourism and cyclicals. While it will take time for this to pan out, he says there already are a few gems that investors can consider.
