You may be Right but They are so Expensive!

Playing It Safe ONLY for the Moment

For the moment, UBS has this to comment on the state of Bursa KL. In their words, it is "defying gravity".


Characteristics?


An All-time high with KLCI at 1,607 on April 3rd, despite weak external economic climate. That the election may be postponed yet again keeps the market going with stimuli galore. 


Also foreign players seeking safe haven from the financial storm in Europe are getting onto defensive stocks.


So, for the moment, UBS suggest the following stocks for consideration as defensive play only. These include: Berjaya Sports Toto,Genting Malaysia, Sime Darby, Hong Leong Bank, Public Bank, IGB and Axiata.


Except for IGB, Genting Malaysia and BJ Sports Toto which are buyable by the retail layman; Axiata has gone mid-range beyond RM5.00.   As for Sime Darby, it is on the cusp on touching RM10.00. Hong Leong Bank is beyond RM12.50 and Public Bank is in the high eavens almost touching RM14.00.


I am sure there are other stocks worth looking at from BJ Foods, Mesiniaga, YTL Corp to  Tasco.


What say you?