Bursa’s big cap stocks in play
Cheah Chor Sooi | 02 Feb 2018 00:30
Some of the many brands under Nestlé, which saw its share price in Bursa Malaysia trading at historical high
The market is abuzz with the sudden interest in big cap stocks on Bursa Malaysia recently. Some of the key counters which saw renewed investor interest include Nestlé Malaysia Bhd and Dutch Lady Milk Industries Bhd. 

Together with Panasonic Manufacturing Malaysia Bhd, British American Tobacco Malaysia Bhd (BAT Malaysia) and Fraser & Neave Holdings Bhd (F&N Malaysia), these counters form the five ‘most expensive’ stocks on Bursa for most retail investors.
Renewed interest from foreign funds coupled with Bank Negara Malaysia’s raising of the overnight policy rate by 25 basis points is said to be the main cause of the optimism surrounding other big cap counters. 

What is even more curious is that Nestlé Malaysia and the other four most expensive counters, in absolute terms, on Bursa are all listed under Bursa’s Consumer Product sector.
Institutional investors usually study a counter’s PE ratio before determining whether a share price is expensive, overpriced or otherwise.