KUALA LUMPUR (May 8): Malaysia’s largest 100 companies added RM175.33 billion to their market value since the start of the year as optimism for a US Federal Reserve rate cut fuelled a broad rally in sectors ranging from technology to utilities.

The top 30 companies — including most of the constituents of the benchmark index FBM KLCI — gained as much as RM118.2 billion in market capitalisation up until Tuesday, according to data compiled by The Edge. Shares of the next 70 companies racked up RM57.13 billion in value.

There is further upside for the KLCI, and the Employees Provident Fund (EPF) account restructuring and pay hike for civil servants will be positive for the equity market, said Nomura.

Banks, consumer staples, retail, retail-focused real estate investment trusts, and automotive as well as stocks related to oil and travel will likely benefit from the introduction of EPF Account 3.

Some of the stocks have exceeded market expectations as investors jumped in on the rally.

On the FBM KLCI, the gains were led by YTL Power International Bhd (KL:YTLPOWR), which soared 92.6% or RM19.07 billion in market capitalisation year-to-date. Its Tuesday's close of RM4.88 beat the 12-month consensus target price of RM4.81 marginally by 1.5%.

YTL Corp Bhd (KL:YTL) also saw a surge of 77.5% or RM16.05 billion in market capitalisation. At Tuesday's close, shares of YTL Corp stood at RM3.35, which was 14.3% higher than the consensus target price of RM2.87.

MR DIY Group (M) Bhd (KL:MRDIY) is the only counter among the top five gainers that still has significant potential upside. The stock has climbed 22% to RM1.77 on Tuesday and accumulated RM3.03 billion in market value, but is still about 18% away from its consensus target price of RM2.08.

However, five out of the 30 KLCI companies have lost value: Maxis Bhd (KL:MAXIS) declined 6.5%, Petronas Chemicals Group Bhd (KL:PCHEM) 3.5%, Genting Malaysia Bhd (KL:GENM) 3%, Genting Bhd (KL:GENTING) 2.8% and Public Bank Bhd (KL:PBBANK) 1.9%.

Analysts believe Genting has the highest upside potential of 34% among its cohort in the KLCI based on the consensus target price of RM6.01 versus its closing price of RM4.49 on Tuesday, followed by Genting Malaysia, whose Tuesday's closing price of RM2.61 trailed consensus target price of RM3.27 by 25%.

Sunway Bhd (KL:SUNWAY) and Malaysia Airports Holdings Bhd (KL:AIRPORT) are among the largest 30 stocks in terms of market capitalisation though they are not constituents of the KLCI.

Gains among the next 70 companies, meanwhile, are predominantly led by construction companies. S P Setia Bhd (KL:SPSETIA) saw the largest gains, with its market capitalisation doubling from RM3.48 billion to RM6.98 billion.

S P Setia shares have jumped 20.1% above the consensus target price of RM1.21 following the recent rally.

Investors have also piled up Chin Hin Group Bhd (KL:CHINHIN), sending its shares up 81.3% year-to-date. The property developer has added RM5.08 billion to market capitalisation though no institutional analyst covers the stock.

Laggards within the mid 70 stocks are mostly technology companies. Oil and gas services firm Yinson Holdings Bhd (KL:YINSON) has the highest upside potential of 45.4% with its Tuesday's closing price of RM2.47 against the consensus target price of RM3.59, followed by CTOS Digital Bhd (KL:CTOS).

The median target price of RM1.82 for the credit scoring company is still nearly 30% above its closing price of RM1.40 on Tuesday.

Greatech Technology Bhd (KL:GREATEC) was also the third biggest laggard with its Tuesday's closing price of RM4.56 being 26.1% lower than the consensus target price of RM5.75, followed by MyEG Services Bhd (KL:MYEG), which closed at 92 sen, 24.1% lower when compared to the consensus price of RM1.14.

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