Malaysian stocks available at compelling valuations rising


CIMB Research's top three picks are Axiata, Dialog and Malaysia Airports.
KUALA LUMPUR: A number of stocks looking attractive on valuations are rising as the FTSE Bursa Malaysia KLCI Index’s price-to-earnings ratio has fallen below the historical average of 16 times amid continued selling by foreign investors,  Credit Suisse analyst Danny Goh writes in note.

The FBM KLCI's price-to-earnings (P/E) at 15.6 times on Credi Suisse estimates; dipped below historical average only once in last five years when government halted offshore trading of ringgit in 2016.

Stocks trading at or below global financial crisis price-to-book levels include Uzma, Mah Sing, SP Setia, Gamuda, CIMB, AirAsia Group, BAT, Genting, Genting Malaysia, Public Bank.

Shares offering more than 5% dividend yield include Astro, Malakoff, Maybank, SP Setia, Telekom Malaysia, CIMB, BAT, Mah Sing.

Clarity on plans to improve fiscal position, economic growth, ties with China and Singapore, leadership at government-linked companies and finalisation of mega projects can lift sentiment. - Bloomberg

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