While markets did not rally as much as expected in 1H2011, OSK are keeping our view of an election-fuelled rally towards year-end, bringing the KLCI to 1680-pt target.
Banks, Oil & Gas, Construction, Property & Healthcare/Media remain OSK Preferred sectors. OSK Top Buys are generally extracted from these sectors.
OSK note that their Top Buys are not cheap but they continue to promote these stocks on account of their lower risk profile and the cautious mood in the market.
Below are OSK Top Buys for 2H2011
Top Buys for Big Caps Stocks
| Stocks | Price (RM) | Target price (RM) | Market Cap (RM million) | Rating |
|---|---|---|---|---|
| Maybank | 8.72 | 10.07 | 63,847.8 | Buy |
| CIMB | 8.34 | 9.15 | 61,982.8 | Buy |
| Axiata | 4.92 | 5.77 | 42,276.7 | Buy |
| UEM Land | 2.77 | 3.52 | 11,285.0 | Buy |
| AirAsia | 2.99 | 3.89 | 8,299.5 | Buy |
Top Buys for Medium & Small Caps Stocks
| Stocks | Price (RM) | Target price (RM) | Market Cap (RM million) | Rating |
|---|---|---|---|---|
| Kencana Petroleum | 2.74 | 3.17 | 6,323.1 | Buy |
| QL Resources | 3.21 | 3.81 | 1,049.9 | Buy |
| KPJ Healthcare | 4.26 | 5.37 | 815.0 | Buy |
| Media Chinese | 1.27 | 1.70 | 2,756.1 | Buy |
| KimLun Corp | 1.79 | 2.37 | 940.4 | Buy |
Source : OSK Research