KUALA LUMPUR: OSK Research said with the upside for most Asian markets limited in October, small caps outperformed the FBM KLCI as expected, leading to four out of its five Top Buys outperforming the benchmark.

"For November, we caution on potential profit taking. Investors may well wish to focus on sectors where the results for 3Q2010 are expected to be more resilient, as well as stocks that are off the radar screens of foreign investors such as the Consumer sector, while keeping an eye on the 2 upcoming by-elections," it said in its outlook report issued on Monday, Nov 1.

OSK Research said its November Top Buys are two defensive stocks (KPJ and CI Holdings), and three situational plays (Kencana, Kulim and Naim Holdings).