Dialog

OSK Top 10 Stocks for Bottom ‘Nibbling’

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.

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OSK Oil & Gas Sector Stock Picks, Aug 2011

O&G

OSK remain OVERWEIGHT on the O&G industry and Buy calls on both Coastal and Dayang.

OSK like Coastal for its mergers and acquisition story. OSK re-iterate their view that it would be a matter of time before Coastal finds itself a suitable partner for M&A purposes.

OSK also like Dayang due to it’s stable, recurring income. This is because oilfield and platform maintenance are all-year-round jobs and having a slice of this business pie is always better than getting one-off jobs as they provide assurance of future earnings sustainability

Below are the target prices and ratings for selected Oil & Gas stock.

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OSK Top 5 Stock Picks for Jul 2011

Malaysia already one of the world’s stronger performers so far in 2011. OSK believe the good run will continue in July and hence advocate the sectors linked to the ETP, namely Banks, Construction, Property and O&G, as investment ideas for the month.

OSK also continue to see the local market climb towards year-end target of 1680 pts, although the 1600-pt psychological resistance might be difficult to break before Budget 2012 which to be unveiled on 7 Oct.

For July, OSK top picks are from Banking, Construction, Property, Oil & Gas and Steel
sector.

The table below are the target price for OSK’s July 2011 top picks.

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OSK Oil & Gas Sector Stock Picks, June 2011

O&G

OSK remain OVERWEIGHT on the O&G sector given the numerous opportunities to be mined by O&G service providers, spurred on by Pengerang’s development.

Two recent developments are;

  • Dialog Group signed a Development Cum Joint Venture Agreement (DJVA) with the Johor State Government granting it the right to start land reclamation works in Pengerang in Malaysia’s Johor state, and use the reclaimed land for the construction of a Deepwater O&G Terminal.
  • Petronas announced that its USD20bn Refinery and Petrochemical Integrated Development (RAPID) project, also to be located in Pengerang, will house an oil refinery, petrochemical plants and possibly, a LNG regas terminal.

Below are the target prices and ratings for selected Oil & Gas stock.

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Stock Picks – Oil & Gas Sector – January 2011

O&G

The share prices of O&G stocks are undergoing a re-rating, largely fuelled by positive market sentiment and strong news flow. Going forward, partnerships or actual contract awards will be the main ‘push’ factor for further share price upside and the lucky companies will continue to outperform those which lack news flow. Average sector PER valuation is raised from 13.2x to 16.6x. Maintain Overweight on the sector, with top picks being Kencana Petroleum, Alam Maritim, Petra Perdana and Petra Energy.

Below are target price for selected companies in Oil & Gas Sector.

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