Tuesday, April 12, 2011

KLCI Equities In Sideways Trading, 3 - 8 April 2011 Review

Equity
The FBM KLCI was locked in a sideways market last week despite the strong showing in global equity markets. The MSCI Asia Ex-Japan rose 2.1% week-on-week (WoW) driven by improving economic condition. The recent surged in the trading volume indicated investors are ready to invest which could spur some interest in the second and third liners. For the week, the FBM KLCI climbed 2 points or 0.2% to close at 1,557 points. FBM EMAS Index jumped 47.2 points or 0.44% to 10,733.8 points while the FBM Small Cap Index rallied 255 points or 2.2% to 13,371 points. Average daily trading value declined 2% to RM2.20 billion, but was still 3% above the three-month average of RM2.14 billion.

Equity Market Outlook
The local equity market would likely continue with its base building mode and should find support at 1,550 points. Investors would generally stay on the sidelines, focusing on Invest Malaysia 2011 Conference on April 12 and 13. However, we believe the biggest risk in the short term is the upcoming Sarawak Election. Investors are seriously looking at the outcome of the event. Any bad news to the current ruling will be negative to the market as investor confidence would be shaken. We are adopting a cautious view on the market and only re-enter into the market once the
index level touches 1,540 points. We still like construction and property but reducing exposure in Oil and Gas sector.

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


Source: ING Funds Berhad

2 comments:

  1. I really appreciate your post and you explain each and every point very well.Thanks for sharing this information.And I’ll love to read your next post too.
    regards:
    Stock Tips

    ReplyDelete
  2. I really appreciate your post and you explain each and every point very well.Thanks for sharing this information.And I’ll love to read your next post too.
    regards:
    Stock Tips

    ReplyDelete

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