OSK still foresees potential for further market retracement, although a possible deep recession can probably be averted. However, OSK maintains 2012 KLCI fair value at 1466 pts seeing a slow recovery forward unlike in 2009.
OSK is recommending Telcos, Consumer, Healthcare and Media as defensive sectors. With the market approaching 1350pts non recessionary bottom, OSK believes some Bottom “Nibbling” would be reasonable, although aggressive bottom fishing is not recommended.
The table below is the OSK top 10 stocks for a bottom ‘nibbling’ including fair value, dividend yield & rating.
| Stock | Div Yield (%) | 25 Sep Price (RM) | Fair Value (RM) | Call | 8 Jul Price (RM) | Fall since 8 Jul (%) | Upsite to FV (%) |
|---|---|---|---|---|---|---|---|
| Petronas Chemicals | 3.00 | 5.46 | 9.00 | Buy | 7.11 | -23.20 | 64.80 |
| CIMB | 2.70 | 6.74 | 8.20 | Neutral | 8.92 | -24.40 | 21.70 |
| Genting | 1.70 | 8.61 | 13.18 | Buy | 11.22 | -23.30 | 53.10 |
| RHB | 3.10 | 7.72 | 9.90 | Buy | 9.05 | -14.70 | 28.20 |
| Airasia | 0.00 | 2.82 | 5.18 | Buy | 3.45 | -18.30 | 83.70 |
| Gamuda | 4.40 | 2.74 | 4.14 | Buy | 3.82 | -28.30 | 51.10 |
| Parkson | 2.70 | 5.08 | 7.58 | Buy | 5.99 | -15.20 | 49.20 |
| SP Setia | 4.80 | 3.08 | 3.97 | Buy | 4.14 | -25.60 | 28.90 |
| Dialog | 1.60 | 1.92 | 3.43 | Buy | 2.67 | -28.10 | 78.60 |
| Kencana | 0.90 | 2.35 | 3.17 | Buy | 2.80 | -16.10 | 34.90 |
Source : OSK Research