Focus on mid-cycle plays

There is a growing concensus that we are now in the mid-stage of the bull market, and that the
richest returns for the asset class are likely behind us. The current economic recovery has now moved closer towards the mid-expansion phase and even though this points to further upside for equities over the mid-longer term, be selective in the short-term as valuations are no longer cheap. We believe that at this stage, investors should go for undervalued turnaround plays with sharp profit upswing potential or better yet, if earnings are heading beyond precrisis levels and valuations are still lagging.
CSE Global (Buy,TP: S$1.18), Banyan Tree Holdings (Buy, TP: S$1.04) and Tiger
Airways (Buy, TP: S$2.10) are our picks in this area.
- DBS Vickers

Saxo's Picks: We are approaching the middle of the uptrend.
Capitaland
CapitaMall Trust
CapitaMalls Asia
Healthway Medical
Hupsteel
NOL
SGX