OSK still maintain year-end 1680-pt KLCI target. However, they note that there are increasing market volatility in the short term. Investors with a lower risk appetite and shorter investment horizon may want to focus on defensive and dividend yielding plays.
OSK Top 10 Defensive Buys, which have dividend yields exceeding 4%, are from a broad range of sectors including Consumer, Healthcare, Media and Logistics.
OSK Top 10 Defensive Stocks Picks are,
In March 2011, Sunway Holdings was awarded two contracts worth RM332 million. The contracts are RM74.1 million construction of central utilities facility at Biotechnological Park BioXCell and RM258m job for the construction of the Legoland Theme Park. Both contracts are located in Iskandar, Johor.
Another interesting news is regarding the merger between Sunway Holdings and Sunway City. The EGM to vote on the merger is expected to be held sometime in April. If the proposal goes through, the merged entity should be listed in July or August 2011.
Many research houses are calling “buy” for Sunway Holdings. The table below are the target price for Sunway from various research house. The last traded price was RM2.19.
Japan hits by worst earthquake in over 100 years. The cost of reconstruction is estimated at USD161bn. The impact on Malaysia is generally limited given that Japan’s major ports and industrial areas have been spared. However, there would still be winners and losers among some sectors. For now, OSK maintain Buy into Weakness call on the Malaysian market with year-end target for KLCI of 1680 pts remain intact.
During the 4th Economic Transformation Programme (ETP) update recely, the PM unveiled a further 9 Entry Point Projects (EPP)s worth over RM2bn, bringing the total to date at 60 projects under 46 EPPs. To date, the projects will produce RM95bn in investments and increase GNI by RM137bn.
With the ETP and theupcoming General Election as its twin catalysts, OSK remain Overweight on the Malaysian market with our 1680 pts year end target intact. Favourite sectors remain Banks, Oil & Gas, Property and Construction.
The 4th EPPs announced include:
Despite relatively strong results from a number of Blue Chips in February, the market still retreated and ended up in the red so far in 2011. Selling was largely attributed to concerns arising from political unrest in the Middle East but the risk is limited if this does not spread to Saudi Arabia.
With the 4Q2010 earnings results season over, OSK unveil new 2011 KLCI year-end target of 1680 pts, which is the average of the 2011 KLCI fair value (1648 pts) and that for 2012 of 1710 pts.
OSK continue to advocate Buying into Weakness for sectors such as Banking and to trade in O&G, Construction and Property plays. OSK also adding a slightly defensive flavor to our Top Buys for March. While the market remains volatile for now, OSK see an election driven rally towards year-end.
The table below are the target price for March 2011 top picks.