OSK foresee that market will recover in May as they believe the 1Q2011 will at least meet downbeat expectations after the past 4 quarters of disappointments. With the potential for reasonable results, OSK believe the market will shift back to fundamentals and look back at Big Caps.
Strategy for the month would be to Buy fundamentally strong Big Caps as well as Trade on the Property sector as the newsflow here could resume after a couple of months hiatus.
OSK Top Buys are big caps with Maybank, CIMB, and Axiata are top banking & telcos stocks. AirAsia’s reintroduction of fuel surcharges and upcoming listing of its associates should help its share price while UEM Land is an excellent proxy for newsflow in the property sector
The table below are the target price for OSK’s May 2011 top picks.