For May, OSK see the risk of a global pullback increasing, following a strong performance by global markets in the past 4 months.
Coupled with the poor track record of markets during the period of May–Sept, OSK advise investors to heed the old maxim of “Sell in May and Go Away”. If markets do take an early tumble, then those with longer investment horizons should consider stocks in the Construction, O&G and Banking sectors which will benefit from the ETP.
For May, OSK recommend defensive stock such as Telcos and consumption related stocks which might benefit from a drop in commodity prices such as AirAsia (jet fuel) and Media Chinese (newsprint).
The table below is the target price for OSK’s May 2012 top picks.