OM Sarawak record profits announced, page-34

CMS the JV getting thrashed in KLSE following the politics in Malaysia. The new government will be good for Malaysia long term but short term will create a bit chaos for businesses.

This is mainly due to open tendering policy set up by this incoming government as opposed to the last one. Spotlight is currently on Najib the ex prime minister but is shifting towards Taib who is the bigshot in sarawak. CMS has a lot of big ticket infrastructure contracts.

CMS who is a big beneficiary of government contracts in sarawak is going to get targeted. So I think this selldown of OMH is associated with that.

I did expect OMH to pullback on some eofy profit taking though. Will re-enter once the profit taking slows down.