17/12/2011 (Channel News Asia) - It will not be all doom and gloom for stocks amid the ongoing market uncertainty.

Market experts are recommending investors to take a bet on palm oil and consumer-related stocks in the coming year.

Bank of America Merrill Lynch says the prospects of these stocks will be driven by the expected uptrend in the Indonesian economy.

Indonesia is currently the largest palm oil producer and its large population means a higher consumer base.

Presenting its latest equity strategy outlook at a briefing, the bank expects Indonesian GDP to hit 6 percent next year.

The world's largest brokerage adds that other ASEAN economies are expected to remain resilient as well.

Philippines' economy is expected to grow by 4.4 percent and that of Thailand by 4 percent next year.

It adds that Indonesia may even earn itself a credit ratings upgrade.

But they also warn of some headwinds facing ASEAN economies due to the expected recession in Europe.

This may cause earnings moderation for some companies in the region.

Melvin Boey, Head of Equity Research - ASEAN, Merrill Lynch Singapore, said: "From a sectorial perspective, we would be focused on sectors that can give and provide sustainable quality and above trend growth and these sectors in ASEAN would include the palm oil sector as well as consumer, especially under discretionaries."

- CNA/ch