OSK Research expects companies in its top 50 Malaysian small-cap list, dubbed “50 Jewels”, to register between 5 per cent and 15 per cent growth in earnings this year, driven by their strong fundamentals, as well as a recovery in the economy.
In their 2009 small-cap list, 32 out of 50 of them having posted absolute returns of 50 to 375 per cent, outperforming the benchmark index. So I hope 2010, 50 Jewels will perform reasonably well.
OSK Research also targeted the benchmark FTSE Bursa Malaysia KL Composite Index to hit 1,465 points by year-end. It also placed a fair value of 1,580 points on the index in 2011.
The table below is the top 10 companies in OSK Small Cap 50 Jewels and their target price.
The Ringgit, which has strengthened more than 6% year to date against US dollar, is poised to make further gain. The current strength has helped selected “ringgit-play” stocks to emerge.
However, “ringgit-play” stocks may only short term phenomenon. The stocks that gain the most with strong ringgit is the the companies that imports a lot of raw materials in foreign currency. The companies that depend on export may be turn out to be a loser.
The table below shows sectors and stocks that benefit from stronger ringgit.
If you are investing in dividend stocks, you maybe interested to know the estimate dividend for FBM KLCI Components Stock for 2010.
According to Nomura International, income stocks in Asia are expected to sustain their dividend payouts this year.
The table below shows the dividend projection for FBM KLCI component stocks in 2010. The projection is almost the same level in the past 12 months.
Standard & Poor’s recently issued a comprehensive report on Malaysia and make 25 stocks picks that they believe will outperform FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) in 2010.
This year, share prices are not as cheap as in early 2009 and the market will be more volatile. Standard & Poor’s however, maintain FBM KLCI target at 1,400 points in 2010 for an 11% return.
They believe the chosen stocks will be the best poised to benefit from the economic recovery and with relatively comfortable valuations to hold up against the increased volatility in the market. The managements of the chosen company also have a proven track records. Some of the chosen companies are also the dominant players in their fields.
Below is the 25 stocks that Standard & Poor’s pick for 2010.
Every beginning of the year The Edge Malaysia, make a recommendation on the counters to Watch for that year. This year, they recommend 10 counters to look into based on companies fundamental and share price valuation.
Before we see the 2010 list, we look at the performance of their 2009 stock pick. In 2009, The Edge recommend 20 counters in their watch list. Overall the The Edge stock picks in 2009 outperformed Kuala Lumpur Composite Index (KLCI) with an average gain of 68% versus 45% gain for KLCI. In the investors sell the counters at the peak of the share price, the gain is higher at 78.5%.