Stick To Defensive Strategy In Malaysia - UOB

06 Jul 2012

UOB Kay Hian says investors should accumulate downtrodden value Malaysian stocks but stick to high-defensive strategy in 3Q. The house has an Overweight call on defensive sectors such as :  number forecasting operator,  telecommunication,  plantation,  and rubber glove producers.  "The oil and gas sector remains the only high beta sector which we would Overweight," says UOB Kay Hian in a note.  It keeps its year-end KLCI target at 1560 and expects the market to trend lower through 3Q to bottom in the 1445-1515 range with worst case at 1410 based on mid-2013 target P/E of 12X.  The KLCI is last up 0.3% at 1619.37.  UOB Kay Hian's top picks include  Maxis (6012.KU),  Multi-Purpose Holdings (3859.KU),  SapuraKencana Petroleum (5218.KU) and  Perisai Petroleum (0047.KU)  while its top Sell stock is Bumi Armada