Play what market want to play, the YTL is riding with additional speculation element.

YTL will benefits from the sector of rotation.

After the utility sector, comes the construction sector. Long for YTL, close both eye until next year.

Construction sector seeing inflow of funds probably from the rebalancing of the portfolios. Funds starts rotating into construction sector on speculation the sector will benefits from government spending on major infrastructure.

Current movement in stock price = 6 months lead of the expected market activity.

Today QR announcement is sufficient to fuel the movement at least another 3 months to the next QR. Along the line, few more expected catalysts:-

a) MRT3 around Oct 23 during tabling of Budget 24
b) Inclusion into FBMKLCI Index Constituent. At present with market capital of 15B, YTL already climbed ahead of Dialog (12B), AMMB(12.2B), MRDIY(14.5B), QL (13.3B), Sime(14.4B), Westport (11.9B).

YTL is just a position away to overtake GenM at 15.6B

YTLP (14.3B) also ahead of Dialog (12B), AMMB(12.2B), MRDIY(14.5B), QL (13.3B), Sime(14.4B), Westport (11.9B).

By year end, inclusion of YTL & YTLP to FBMKLCI is reality.

c) The listing of the assets

d) HSR

Long for the counter, close both eyes.

The fun managers having a lot of fun toying with YTL & YTLP after the budget 2024. Actually it was kind a let down on the budget.

However, when I read what Transport Minister said before, the HSR and MRT3 would never be in the nation budget.

https://theedgemalaysia.com/node/682032

“For MRT3, as you know, (all) MRT ­(projects) have always been off-budget. They have never been part of the national budget. The expenditures on MRT projects are not reflected in the national budget. It does not fall under DE (development expenditure) through MRT Corp"

It is not over, there is still hope as the tender validity bond have been extended till year end.

"Separately, The Edge has learnt that MRT Corp has notified companies that the validity period for their job tenders in relation to MRT3 has been extended. The tender bond has been extended by three months from Sept 30 to the end of the year. Bidders have been told they need to submit certain required documents for the extension of the validity period."

a) in the next 2 weeks, the dividend will go ex on 9/11/23. 4 cent will yields around 3% per annum at present price. If the dividend is 10 cent in the coming years, it will yields close to 7.4%.
b) 3rd QR ending 30th Sep 23 will be reported on 3rd week of November 23
c) couple with possible conclusion / decision on MRT 3

At the present price of 1.34 which have already fallen by 21% from the peak of 1.7, it should be a lot safer now. Utility sector will still be favored in theme (stability) in the current volatile market condition. It is just not the time for other theme play yet.

Will be going into defensive mode until new major trend appear. Adios everyone & happy holiday.

This post has been edited by nihility: Apr 23 2024, 11:56 AM

1st time experiencing multi-bagger or multifold? After a few cycles you will get use to it.