Published August 23, 2008

Investors look past politics & find value: Macquarie

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(KUALA LUMPUR) Digi.Com Bhd and TM International Bhd are among Malaysian stocks recommended by Macquarie Group Ltd as good valuations outweighing political concerns.

'Investors are finally beginning to look past politics and shifting their focus back to fundamentals and finding value in Malaysia,' Macquarie said in a report dated Aug 21.

Based on investor feedback, 'politics has declined as a concern', it said.

The Kuala Lumpur Composite Index has slumped 17 per cent since opposition parties won almost half the states in the March 8 election and denied the ruling coalition a two-thirds majority in parliament for the first time since 1969.

Prime Minister Abdullah Ahmad Badawi, facing a weakened government, has said that he would transfer power to his deputy, Najib Razak, after the party's annual meeting in December.

The benchmark stock index is valued at 12 times reported earnings and traded at 16 times at the start of the year, according to data compiled by Bloomberg.

Macquarie said that investors should buy Public Bank Bhd, Malaysia's third-largest bank; Genting, Asia's biggest listed casino operator; lottery rival Berjaya Sports Toto Bhd; and banking group AMMB Holdings Bhd. -- Bloomberg