OSK Top 5 Stock Picks for April 2012

Although the market met expectations and rallied to an all-time high closing in March, it may be dogged by some uncertainties and potentially retrace in April.

This, however, has not deterred investors from scouring the market for Election-related BUYs.

For April, OSK Top Buys are stocks with a specific catalyst during the month, namely TNB, which should report improved results this month, MMC with the upcoming listing of subsidiary Gas Malaysia, Kencana with its upcoming merger with SapuraCrest, Dialog which has been a noteworthy laggard and Padini, for which a wider coverage and better liquidity should boost sentiment.

The table below is the target price for OSK’s April 2012 top picks.

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Stock Picks – High Potential Companies Declaring Bonus Issues


Given the success of recent bonus issues in fuelling a rally in share prices and the potential abolishment of ‘par value’ in the Malaysian capital market, we take a look at who else might be declaring bonus issues soon.

Based purely on the share premium to share capital ratio, where the higher the ratio the easier it is to issue bonus shares.

The table below are the list of higher potential bonus issuers among the top 75 companies by market capitalization.

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List of Local Call Warrants and its Maturity Date, Exercise Price & Ratio


Previously we look at Warrants, there are another type of warrants traded in Bursa Malaysia. We call it Call Warrants. Below are short brief explanation about Call Warrants.

Call Warrants give a right, but not an obligation, to buy a fixed number of stock shares at a specified price within a limited period of time. But unlike warrants, call warrants are issued by third parties based on existing stock shares. Therefore, they do not increase the issued capital or dilute the earnings of the company as a warrant do. Call warrants have maturity dates of not more than two (2) years

The table below shows Local Call Warrants that currently traded in Bursa Malaysia together with its maturity dates and exercise price as of 10th August 2010.

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Top Stocks to Benefit from 10th Malaysia Plan


Construction, Property and Utilities most affected. As can be expected from a development plan, the Construction and Property sectors were the most impacted. While we were pleased to note that there was no cut to the development budget, we also noted the shift to PPP-type projects and remain skeptical that funding can be sourced simultaneously for the LRT extension, Double Track extension and KL MRT projects. We prefer Sarawakian companies for construction play given the continued emphasis in the 10MP.

As for property, while noting that land value could be unlocked with the development of Sungai Buloh, Sungai Besi airport and Kampung Baru, we are concerned that existing commercial property values could be capped if the launch of these new developments is not properly planned.

Finally, on Utilities, the LNG plant and new coal power plants coupled with planned subsidy reductions should help assuage concerns of a looming power crunch although political will is needed in cutting the subsidies.

A selection of beneficiaries. In distilling down the sectoral impact, we believe that among the notable beneficiaries of the 10MP will be:

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2010 Dividend Estimates for FBM KLCI Component Stocks

dividend stock

If you are investing in dividend stocks,  you maybe interested to know the estimate dividend for FBM KLCI Components Stock for 2010.

According to Nomura International, income stocks in Asia are expected to sustain their dividend payouts this year.

The table below shows the dividend projection for FBM KLCI component stocks in 2010. The projection is  almost the same level in the past 12 months.

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