Target Achieved: Sell Big, Buy Small (OSK)

While the US and most Asian markets rose in September, the KLCI was a bit of a laggard after a strong August rally. Nonetheless, our advice to ‘Continue to Buy Big in September’ still turned out to be fairly correct while our ‘Buy Infrastructure Plays’ theme was Spot On. For October, we see limited strengthening in the Ringgit and the lack of any positive surprises in Budget 2011. As such, we advise investors to relook at laggard Small Cap companies, particularly those in the Defensive Consumer and Healthcare sectors. Oil & Gas companies are also worth considering given the impending listing of MMHE. Our Top Buys come from these sectors, namely Kencana, KPJ, QL and Faber, rounded off with fundamental small cap construction company, Sunway.