MARKET TALK: Avoid Malaysia Plays With High Foreign Shareholding -TA

GMT [Dow Jones] TA Securities says investors should avoid Malaysian stocks with a high level of foreign shareholders and accumulate dividend-yielding stocks instead; the house keeps its Neutral view on Malaysian stocks with year-end target for the benchmark KLCI of 1490. "We think there is further downside risk of earnings forecasts if the economic momentum fails to pick up. Moreover, external shocks, whether in the form of double dip recession in U.S., worsening European banking crisis or a slowing China economy, could further dampen corporate earnings going forward," says TA Securities. It notes, the top five stocks with a high level of non-strategic foreign shareholdings are AirAsia (5099.KU), Genting Bhd. (3182.KU), IJM Corp. (3336.KU), CIMB Group (1023.KU) and Uchi Technologies (7100.KU). For dividend stocks, the house picks Carlsberg Brewery Malaysia (2836.KU), Lingkaran Trans Kota (6645.KU), Berjaya Sports Toto (1562.KU), Boustead Holdings (2771.KU) and YTL Power (6742.KU). The KLCI is up 1.5% at 1468.37.