Phillip Capital Management said stocks of construction companies with links to the previous administration would be most affected in the wake of a major review of all mega projects by the present government.
The report, made available to unit trust managers, advised shareholders to sell stocks in companies such as Ahmad Zaki Resources, which is undertaking the construction of projects such as the PNB hotel and office towers.
It also placed property firm Glomac on the “avoid” list, given that some members of its top management are Umno leaders.
Others to either avoid or buy with caution include Ekovest, Gamuda and George Kent.
“Although George Kent has gained experience in electric-rail related contract, it will be subject to more stringent scrutiny under the PH government.”
Advice to shareholders? “Reduce,” it said.
Media companies were not spared either, with the report telling shareholders to avoid companies known as propaganda vehicles for BN such as Media Prima and Utusan Melayu.
“The same will happen to MCA-owned companies, ie. Star Publications and Matang,” the document said.
It said while Media Prima was driven more by private sector demand, the company, which also publishes New Straits Times, had seen declining newspaper readership.
It said Utusan Melayu, which publishes Utusan Malaysia, had been making losses for many years and was unlikely to survive without the government support which it had long enjoyed.
As for Star Media which publishes English daily The Star, the report said most of its revenue came from advertising from the private sector linked to MCA.
“Hence, we do not foresee any long-term impact from this election outcome. However, its association with MCA is a liability to the stock,” it said.
To shareholders in The Star, the advice was short: “Sell.”
It was another story for companies owned by individuals closely linked to Prime Minister Dr Mahathir Mohamad, the document said.
The document named tycoon Lee Kim Yew’s Country Heights and Vincent Tan’s Berjaya Group as companies which would likely head for better days under the new government.
Others include Opcom, a company linked to Kedah Menteri Besar Mukhriz Mahathir, as well as Thriven and Eden, linked to the son of Home Minister Muhyiddin Yassin.