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=MARKET BUZZ: JP Morgan Keeps Malaysia On Underweight, Suggests Defensive Stocks

KUALA LUMPUR (Mar 25) -- JP Morgan keeps Malaysia on Underweight rating amid subdued earnings growth at 2.9% year-on-year and medium-term policy risks from potential flux in capex-plays and government-linked stocks. Still, house notes that Malaysian equities may be supported by moderation of dollar strength and trade frictions in the near term. Adds, “if investors evaluate a change for the better in governance and policy orientation, this could develop into a meaningful opportunity." In terms of sector, banks and telcos are on Underweight call; recommends staying close to the consumer, healthcare and REITs with Kuala Lumpur Kepong, Dialog Group and Eco World among stocks on its Overweight rating. "For the medium term, our portfolio recommendations are tilted defensively." KLCI down 1%; Kuala Lumpur Kepong and Dialog Group down 0.1% and 1.3% respectively while Eco World up 0.5%.

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