KUCHING: Sarawakian players Cahya Mata Sarawak Bhd (CMS), Harbour-Link Group Bhd and Hock Seng Lee Bhd are among the top ten stock picks of Maybank Investment Bank Bhd (Maybank IB).
The bank yesterday shared its strategies on how to capitalise on the current stock market at its second half 2015 (2H15) Market Outlook session held last Saturday in Kuala Lumpur.
The session with the theme “Maneuvering Headwinds” witnessed the research team presented its investment themes for 2H15 as well as local and regional investment opportunities to clients.
Maybank IB said, “With external headwinds including the crisis in Greece, growth risk in China and US rate hike as well as domestic factors continuing to dominate the domestic investment scene, Maybank IB opines that the capital market will remain volatile.
“Despite the uncertainties, there are still trading windows, and investors who adopt the right investment strategies may still profit from the current market.
“In light of the current market condition, investors were advised to remain defensive in the near term and invest based on selected themes,” the investment bank said.
Maybank IB has overweight calls on construction stocks which are expected to benefit from the continued investment in infrastructure projects, as well as glove producers and technology stocks which will benefit from the strengthening of the US dollar.
The investment bank observed plantation stocks, which are currently rated neutral, may be rerated if a strong El Nino occurred.
“Maybank IB’s top 10 stock picks are Axiata Group Bhd, Gamuda Bhd, NCB Holdings Bhd, CMS, Harbour-Link Group Bhd and Top Glove Corporation Bhd for growth play, Malakoff Corporation Bhd for yield play; and HSL, Hong Leong Financial Group Bhd and Tenaga Nasional Bhd for value play.
“Maybank IB’s year-end target for FBM KLCI is 1830 and forecast for the 2015 full year GDP growth is 4.9 per cent as compared to 6.0 per cent in 2014.
“Overall, Maybank IB expects the market to slowly improve in the mid and longer term as fund outflows should stabilise by year end and corporate earnings are also expected to recover,” the investment bank believed.
The Market Outlook session was in line with Maybank IB’s focus on embracing technology while for the first time, the session was broadcasted live simultaneously to various other locations namely Johor, Penang and Ipoh. Maybank IB said there will also be sessions for clients in Sibu, Kuching, Kota Kinabalu, Kuantan, and Kota Baru.
The investment bank revealed that it holds the Market Outlook sessions twice a year across the country, to share their research ideas and investment strategies with their clients.