In 1H2010, investors showed interest in beneficiaries of Government fiscal stimulus such as construction and steel, but for 2H2010, we prefer sectors that will benefit from private sector growth and consumption. We believe that private sector growth will gradually take over from public sector pump priming to drive the economy into 2011. As such, our Top Sectors for 2H are Autos, Banks, Consumer, Healthcare, O&G and Utilities.
Our 2H2010 top buys are extracted from our preferred sectors for 2H, namely Autos, Banks, Consumer, Healthcare, O&G and Utilities, with the exception of Axiata, which is a regional growth story. We advise investors to enter the more cyclical sectors of Banks and O&G towards the end of 3Q2010.
The table below are the top buys for Big and Small Caps
|Big Caps||Small Caps|
|Stock||Price (RM)||Target (RM)||Stock||Price (RM)||Target (RM)|
|Tan Chong||4.4||5.73||CI Holdings||2.34||3.66|
Source : OSK Research