Positive pre-election sentiment will help drive the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) to an all-time high in 2011, according to OSK Research.

'Given the history of pre-election rallies, we maintain our year-end FBM KLCI target of 1,496 points and 2011 FBM KLCI fair value of 1,648 points even as we caution on the third-quarter results to be announced in November,' it said in
a research note today.

'We continue to think this fair value is achievable ahead of the general election,' the research house said.

Prime Minister Datuk Seri Najib Tun Razak Prime Minister called on UMNO party members to get ready for the general election at the 61st Umno general assembly last week.

'We are particularly positive on the construction, property, and oil and gas sectors as part of the election theme,' OSK Research said.

With the Sarawakian state election expected to be held this year and the general election before June 2011, any weakness in the local bourse next month is a cue to buy, it said.

Among stocks to look out for in line with the election theme are construction players such as Naim Holdings Bhd, Hock Seng Lee Bhd, Gamuda and Sunway Bhd, OSK Research said.

For property, the research house's key buys are SP Setia, Bandar Raya Developments and Sunrise while Kencana Petroleum is its top buy for the oil and gas sector. -- Bernama