KUALA LUMPUR (June 29): The current share market lull is deemed an "opportune time" to accumulate undervalued Malaysian stocks for the long term amid world financial market volatility, according to Public Investment Bank Bhd.

In a note today, Public Investment said accumulation of undervalued stocks was recommended especially if there were fresh bouts of weakness from foreign money outflow.

"In the interim, a trading-oriented stance to capitalise on current market volatilities is also suggested, though confined to the larger-capitalised and more liquid stocks.

"Our (FBM KLCI) year-end target is 1,720 points and suggested stocks for the remainder of the year are Axiata Group Bhd, AMMB Holdings Bhd, Genting Plantations Bhd, SKP Resources Bhd, LBS Bina Group Bhd, Chin Hin Group Bhd, TDM Bhd, Uzma Bhd, Cypark Resources Bhd and Hock Seng Lee Bhd," Public Investment said.

At 11:34am, the KLCI rose 5.29 points to 1,639.33 amid financial market uncertainty after the UK's European Union exit (Brexit) decision.

The KLCI rose as the ringgit strengthened. At 11:40am, the ringgit appreciated to 4.0557 against the US dollar.

Public Investment said the firm expects the ringgit to average around 4.10 to 4.20 against the US dollar this year.

"We still see the ringgit remaining weak in the near to medium term, largely due to 1) strength of the USD (reflected in the Dollar Spot Index Rate) arising from the ongoing unwinding of carry-trades and 2) heightened risk aversion.

"We are more likely to see the ringgit averaging RM4.10 to RM4.20 for the entire 2016 as it remains in a state of flux in the near term," Public Investment said.