KUALA LUMPUR: The local stock market will keep climbing for the remainder of 2011, amid the current weak global economic sentiment, OSK Research Sdn Bhd said.
"We also felt that domestic factors in the form of the ETP and the impending general election meant that the global market could outperform as long as there was no global meltdown," it said in its latest note.
However, OSK Research said if there is a global recession, the Malaysian market cannot expect to continue climbing this year.
It has recommended six alternative defensive stocks for the longer run that would benefit in the event a recession does set in early.
"These stocks will benefit from a drop in incomes and commodity prices and are generally more inward looking as we believe domestic incomes should be more resilient," it said.
OSK Research has given a "buy" call on the six stocks based on a 12-month outlook.