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Brokers' take: CIMB puts out top-five 'shopping list' on market correction


AS the market enters a long awaited correction, stock watchers are revising their strategic picks for what to buy when a dip in share price comes.

"No one knows how long the correction will last but we see the opportunity to prepare a shopping list of 'must-own' stocks backed by fundamentals," CIMB analyst Lim Siew Khee said in a flash note on Wednesday morning.

The stocks are now all trading above the threshold that Ms Lim is eyeing, but could be scooped up if they slide into the sweet spot.

She suggested buying into electronics provider Venture Corporation at S$21.77, on the back of its resilience.

Ms Lim noted that the second half of the year is seasonally stronger for the company and "we believe its business momentum is still strong with no disruption seen across its end-customer".

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Venture was trading lower by S$0.31, or 1.38 per cent, at S$22.17, as at 3pm.

She also suggested buying casino operator Genting Singapore at S$1.20, as credit loosening in its VIP business "could help to lift overall gross gaming revenue".

Genting was down by S$0.01, or 0.79 per cent, to S$1.26, as at 3pm.

Other counters on the list will have some way to fall, as they have shrugged off the market tumult early in the week.

Keppel Corporation, which has been a darling among brokers despite a bribery scandal's toll on its latest earnings, was also among Ms Lim's picks.

Catalysts for the conglomerate include offshore and marine orders, rig sales and land deals in the Tianjin Eco-City project.

While CIMB most recently upped the target price to S$10.00, Ms Lim recommended buying at S$7.85.

Keppel was up by S$0.03, or 0.37 per cent, to S$8.22 as at 3pm.

ST Engineering was pegged as a buy at the S$3.15 mark.

The counter's lustre came in part from the guess that the recent performance of slightly-dearer peer SIA Engineering points to a revival in engine maintenance repair and overhaul prospects.

ST Engineering made gains of S$0.04, or 1.24 per cent, to S$3.27, as at 3pm.

When it came to AEM Holdings, Ms Lim tipped a buy at S$4.70, with a target price of S$6.62, with a forecast of 35 per cent year-on-year earnings growth in 2018.

AEM was up by S$0.02, or 0.37 per cent, to S$5.38, as at 3pm.

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