DJ MARKET TALK: CS Underweight On M'sia; Picks High Beta Plays
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0553 GMT [Dow Jones] Credit Suisse retains Underweight call on Malaysia equities in strategy report; notes market volume has picked up significantly particularly in 'second line' or non-institutional names; "as a low-beta market, it will lag rising markets, until the valuation gap becomes irresistible. We believe the market is trading on 13.3X FY09 P/E vs Non-Japan Asia of 15.0X.
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0553 GMT [Dow Jones] Credit Suisse retains Underweight call on Malaysia equities in strategy report; notes market volume has picked up significantly particularly in 'second line' or non-institutional names; "as a low-beta market, it will lag rising markets, until the valuation gap becomes irresistible. We believe the market is trading on 13.3X FY09 P/E vs Non-Japan Asia of 15.0X.
Among stock picks, likes
Bumiputra-Commerce (1023.KU),
Axiata (6888.KU), G
amuda (5398.KU), and
Tenaga (5347.KU).
High beta stocks combined with hefty discounts to book value include
Scomi (7158.KU),
Muhibbah (5703.KU) and
IJM Corp (3336.KU) while
MRCB (1651.KU) expected to benefit from government construction contracts. (VGB)
Contact us in Kuala Lumpur. 603 2692 5254;
MarketTalk@dowjones.com
Contact us in Kuala Lumpur. 603 2692 5254;
MarketTalk@dowjones.com