Given what may still be a lackluster broader market in June, OSK is focusing on a number of situational stocks that should see better newsflow during the month.
First up, UEM Land who will likely join the KLCI before end June. Second, KimLun Corporation which may see a pick up in newsflow on Iskandar Malaysia during the month. Next, Pos Malaysia which could see the sale of Khazanah’s stake completed in the 3rd week of June coupled with details of what DRB-Hicom plans to do with the company. Finally to round it off, 2 smaller banks, namely RHB Cap and Alliance Financial Group that should see sentiment on improved M&A rumours.
The table below are the target price for OSK’s June 2011 top picks.
| Stocks | Price (RM) | Target price (RM) | Market Cap (RM million) | Rating |
|---|---|---|---|---|
| RHB Capital | 9.22 | 10.16 | 20,201.1 | Buy |
| UEM Land | 2.79 | 3.52 | 11,364.7 | Buy |
| Alliance Financial Group | 3.05 | 3.80 | 4,721.7 | Buy |
| POS Malaysia | 3.10 | 4.12 | 1,664.80 | Buy |
| KimLun | 1.80 | 2.37 | 412.2 | Buy |
Source : OSK Research