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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