Malaysia 2012 Market Outlook

I have summarize the market outlook as below:

1. Overall market in 2012: Neutral
2. 3% downside to our 2012 KLCI , Fair Value KLCI: 1466 points
3. Market volatility to continue. Europe is caught between a rock and hard place.Europe likely in recession for 2012.
4. Economic growth slowing down but no indication fo a recession in Malaysia
5. You should buy defensives stocks, watch out trading opportunities, select high beta stocks, buy on weakness and sell on strength
6. Defensive stocks: Healthcare-KPJ & SUPERMX, Media-MEDIA CHINESE, Consumer-QL,Others-PETGAS, AIRASIA,TRC,Communication-TM & AXIATA
7. Trading Opportunities: Top Cyclical Sectors will be Banks, O&G & Construction
8. Avoid property sector as cyclical buy
9. Oil & Gas sector: focus on ETP, big brother PETGAS still intact
10. Banks sector: SELL CIMB (FV:RM7.62) SELL AMMB (FV:RM6.95), BUY RHBCAP (FV:RM9.90) BUY HLBANK (FV:RM10.88)
11. O &G sector: SELL ARMADA (FV: RM 3.65), BUY COASTAL (FV:RM3.38), BUY PERDANA (FV: 1.20)
12. Constructions sector: SELL WCT (FV:RM 2.93) SELL HSL (FV:1.61), BUY GAMUDA (FV: 3.94), BUY MUDAJYA (FV:RM3.94)
13. Election: latest on March 2012.Buy before the election day and sell 1 month later
14. Low PER, high beta, good rebound candidates & M&A candidates
15. OSK Top Big Cap: MAYBANK (target price: RM9.60, dividend: 7.6%), AXIATA (target price: RM5.60, dividend: 2.5%),PETGAS (target price: RM15.95, dividend: 33%), ,TM (target price: RM5.50, dividend: 7.8%), & AIRASIA
    (target price: RM4.57, dividend: 0.0%)
16. Small Cap: DIALOG (target price: RM3.07, dividend: 1.4%), KPJ (target price: RM5.21, dividend: 3.0%), QL (target price: RM3.62, dividend: 1.4%), TRC (target price: RM0.76, dividend: 1.5%

Happy Learning!!