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