OSK has a Neutral outlook on the Malaysian market going into 2012 as the combination of uncertain growth outlook in the US and Asia coupled with a possible recession in Europe cloud the prospects for strong earnings growth locally.
OSK advises investors to stay cautious into mid 2012 and focus on Defensive sectors such as Consumer, Telco, Healthcare and Media with KLCI fair value of 1466 pts.
Investors are advised to Trade on Cyclical sectors such as Banks, Oil & Gas and Construction as the market dips or rallies strongly. The trading strategy to adopt is, buy when the KLCI falls towards the 1300 pts and sells when the KLCI rises towards the 1500 pts.
The tables below are OSK’s top Big/Mid/Small Caps Stocks with the target price & rating for 2012.
Big Caps Stocks
| Stocks | Price (RM) | Target price (RM) | Market Cap (RM million) | Rating |
|---|---|---|---|---|
| Maybank | 8.25 | 9.60 | 61,693.5 | Buy |
| Axiata | 4.83 | 5.60 | 40,885.4 | Buy |
| Petronas Gas | 13.22 | 15.52 | 26,040.0 | Buy |
| Telekom Malaysia | 4.23 | 5.15 | 15,132.4 | Buy |
| AirAsia | 3.65 | 4.57 | 10,139.3 | Buy |
Mid/Small Caps Stocks
| Stocks | Price (RM) | Target price (RM) | Market Cap (RM million) | Rating |
|---|---|---|---|---|
| Dialog Group | 2.44 | 3.66 | 4,881.5 | Buy |
| QL Resources | 2.95 | 3.62 | 2,454.4 | Buy |
| KPJ Healthcare | 4.20 | 5.21 | 2,443.4 | Buy |
| Media Chinese | 1.10 | 1.47 | 1.856.0 | Buy |
| TRC Synergy | 0.62 | 0.76 | 287.7 | Buy |
Source : OSK Research