Japan Quake: Losers & Gainers at KLCI

Everyone knows it now... Japan earthquake...

The latest new from Bloomberg says:

"The Bank of Japan may today inject more short-term cash into the banking system after the nation’s most powerful earthquake on record, while keeping its asset- purchase plans unchanged as officials gauge the longer-term effect on the world’s third-largest economy. Governor Masaaki Shirakawa told reporters late yesterday he’s ready to unleash “massive” liquidity starting this morning in Tokyo, as the BOJ seeks to assure financial stability..."

Which Company will benefit?

Timber sector ... according to reports from The Edge.


Meanwhile, AmResearch said following the earthquake in Japan, it had have contacted timber players, who are also unsure of the extent of damage stemming from the latest earthquake and the aftershocks.


“Though reconstructions are to be expected, the timber players do not expect a sudden and significant jump in timber exports towards the reconstruction process.
“Of the two timber companies under our coverage, Ta Ann exports 90% of its plywood production to Japan. Its timber products are shipped to trading houses in Osaka, which is located further south of Tokyo, in the central-southern region of Japan. We advise accumulate Ta Ann on weakness (UNDER REVIEW; FV: RM5.61/share) as the recent price pullback has caused an upside of more than 15% over our fair value for the stock,” it said.


Losers

1. The whole market basically due to negative sentiment. Besides, Malaysia export to Japan is RM6.1b or about 11.4% of total export in Jan-2011.
2. I do not recall many Company in Malaysia which has direct business exposure in Japan, except YTL. If you read the news at this link http://www.bernama.com.my/bernama/v5/newsbusiness.php?id=569425 it says "YTL Corp To Turn Niseko Village Into All-Season Resort‎"... they bought it for US$66m, it's a ski resort. With this quake, tourist should avoid Japan for some time, but the impact should be limited...