SINGAPORE (Nov 14): Following news of last week’s US presidential election outcome, UOB Kay Hian is now turning its attention on stocks which it reckons could be beneficiaries of the rising US$ strength against ASEAN currencies.
“The unexpected outcome from the US presidential elections has seen the VIX escalating to a recent high of 22.51. While the VIX has since pulled back, we would position cautiously, given the high volatility and macro uncertainties,” says lead analyst Andrew Chow in a Monday report.
UOB’s “buy” picks include Venture, which the analyst believes will benefit from a rising US$ versus the Malaysian ringgit given that its facilities – which account for 65% of the group’s manufacturing capacity – are located in Johore and Penang. Most of Venture’s revenue is also US$ denominated, he adds, while its dividend yield of 5.6% is among the highest in the technology sector.