JP Morgan Chase & Co. is recommending Malaysian stocks as a “safe refuge” from the volatility of other Asian markets, noting the growing Malaysian economy and weak correlation to major markets as “defensive characteristics” making it an attractive prospect to overseas investors.

Analyst Chris Oh reported that foreign money is “trickling in” to Malaysia again and named banking group AMMB Holdings Bhd., Public Bank Bhd., and power utility Tenaga Nasional Bhd. as good “cyclical stocks” for potential investors. He also suggested they look at casino operator Genting Bhd. and builder IJM Corp.

Recent growth in Malaysia’s economy has renewed interest overseas, along with reassuring policy decisions by Prime Minister Najib Razik’s government that the country will widen its tax base and halve expenditure in order to become more competitive internationally. The local economy grew 10.1% in the three months ending 31 March 2010.

source & full article: Bloomberg