Despite relatively strong results from a number of Blue Chips in February, the market still retreated and ended up in the red so far in 2011. Selling was largely attributed to concerns arising from political unrest in the Middle East but the risk is limited if this does not spread to Saudi Arabia.
With the 4Q2010 earnings results season over, OSK unveil new 2011 KLCI year-end target of 1680 pts, which is the average of the 2011 KLCI fair value (1648 pts) and that for 2012 of 1710 pts.
OSK continue to advocate Buying into Weakness for sectors such as Banking and to trade in O&G, Construction and Property plays. OSK also adding a slightly defensive flavor to our Top Buys for March. While the market remains volatile for now, OSK see an election driven rally towards year-end.
The table below are the target price for March 2011 top picks.
| Stocks | Price (RM) | Target price (RM) | Market Cap (RM million) | Rating |
|---|---|---|---|---|
| CIMB Group | 8.06 | 9.77 | 59,908.2 | Buy |
| Petronas Gas | 11.28 | 13.56 | 22,320.1 | Buy |
| SP Setia | 5.91 | 7.23 | 6,029.5 | Buy |
| Kencana | 2.52 | 3.05 | 4,626.8 | Buy |
| KPJ Healthcare | 3.81 | 4.62 | 2143.5 | Buy |
Source : OSK Research