Wednesday, May 18, 2011

OSK 'underweight' on auto sector

OSK Research is maintaining an 'underweight' call on the automotive sector, reflecting a cautious stance on s nuclear electricity shortage.

The research house suspects that summer power shortages in Japan will create complications for a swift recovery, although recent developments in the country have given some room for optimism.

'We think it is still too early for a re-entry in the sector,' it said in a research note today.

OSK's 'top sell' is UMW and it is likely to revise downwards the earnings forecast for Tan Chong pending the results to be released today.

It has a 'buy' call on Proton, citing depressed valuation and noting that, its domestic market share has since expanded further.-- Bernama

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