Tuesday, April 5, 2011

FBM KLCI Surged 2.6% As Sentiment Improves, 27 March - 2 April 2011 Review

Equity
It was a good week for Malaysia equities as the key benchmark index surged 39.8 points or 2.6% to close at 1,555.3 points. Investors’ sentiment turned bullish with signs of real participation from the local and foreign houses. The buying was broad-based with strong volume. However, the FBM KLCI underperformed the region for the week as the MSCI Asia Ex-Japan rally 3.3%. On the broader market, the FBM EMAS index jumped 269.7 points or 2.58% to 10,686.6 points while the FBM Small Cap index up 418.7 points or 3.29% to 13,116 points. Average daily trading value rose 15% to RM2.25 billion, which was 1% above the three-month average of RM2.23 billion.

Equity Market Outlook
We see the market is about to break the previous high as market momentum has been running high since it broke out from its 50-day moving average. We believe the momentum this time round should be able to sustain until end of the month as we
expect more positive news will be announced during the upcoming Invest Malaysia event. We see 1,528 as the support level. We continue to like construction, property and oil & gas.

Equity Market Strategy
Stock picking is still our strategy with preference for liquid fundamental stocks on weakness.

Source: ING Funds Berhad

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