'Good time to buy into AirAsia, Axiata and TNB'

PETALING JAYA: The depreciating ringgit against the US dollar has put a dent on AirAsia Bhd, Axiata Bhd and Tenaga Nasional Bhd's (TNB) share price but presents an opportunity for long-term investors to invest in the stocks at a discount.
In the last one month, all three stocks saw their shares price fall by 4.09% (AirAsia), 4.30% (Axiata) and 4.78% (TNB).
In the same time frame, the ringgit had weakened by 4.47% to 3.7525 from 3.6017 to the dollar.
Among the 12 stocks under its universe that would be negatively impacted by the weaker ringgit, the research house said "investors with longer term horizon should keep a watchful eye on AirAsia, Axiata and TNB as the current subdued sentiment presents an opportunity for long-term exposure at more palatable levels".
HLIB Research has put a negative watch on the air, telecommunications and power sectors, noting that companies in the segment hold US dollar denominated loans and debts.
The ringgit has weakened to multi-year low and breached the previous low of RM3.73 to the dollar and is inching towards the pegged level of RM3.80 per dollar.
However, HLIB noted that while the weaker ringgit has compounded the subdued sentiment on the local equities market on concerns about the impact on economic data and the equities market, there is a silver lining as certain sectors and stocks would benefit from the strong dollar due to their dollar-based revenue.
"Given the current subdued overall market, the only bright theme at this juncture that could excite investors would be the play on strong US dollar beneficiaries," it said in a report yesterday.
As the dollar continues to strengthen, HLIB Research said it prefers Evergreen Fibreboard Bhd, Eversendai Corp Bhd, Homeritz Corp Bhd, Inari Amertron Bhd, Oldtown Bhd, Time Dotcom Bhd (TdC) and Unisem (M) Bhd.
"These stocks are aided by the right fundamental ingredients that would still support share price performance even if the strong US dollar theme play fizzle out," it explained.