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,
| Stock | Business | Dividend Yield Current Year (%) | Forecasted PER (x) | Last price (RM) | Fair Value (RM) |
|---|---|---|---|---|---|
| Yi-Lai | Manufacturing ceramic tiles | 12.1 | 7.5 | 0.825 | 0.98 |
| Aeon Credit | Financing for motorcycles and white goods | 9.2 | 6.6 | 3.8 | 4.35 |
| DiGi.Com | Mobile telecommunications services | 7.6 | 16 | 27.46 | 27.9 |
| Berjaya Sports Toto | Number Forecast Operator | 7.2 | 16.5 | 4.15 | 4.51 |
| Amway | Multi Level Marketing | 6.9 | 15.9 | 8.5 | 11.05 |
| Freight Management | Logistics provider | 6 | 6.4 | 1 | 1.4 |
| Public Bank | Financial Services | 5.5 | 12.7 | 13.02 | 14.2 |
| Pos Malaysia | National Postage Services | 5.2 | 12.9 | 3.18 | 4.12 |
| Petronas Gas | Processor and Transporter of Natural Gas | 4.9 | 15.2 | 11.3 | 13.56 |
| Media Chinese | Chinese language publisher | 4.7 | 12.7 | 1.14 | 1.65 |
| KPJ Healthcare | Private Hospital Services | 4.2 | 15.4 | 3.84 | 4.62 |
Source : OSK Research