Wednesday, July 27, 2011

FBM KLCI Fell 0.8% on External Markets' Weakness, 17 - 23 July 2011 Review

Equity
It was another week of consolidation, especially early in the week on the back of weakness on Wall Street and European markets. But the FBM KLCI clawed its way back as global markets rebounded. The successful listing of a large oil and gas company on Thursday, which contributed 25% of market value, appeared to buoy market sentiments as well.

For the week, the FBM KLCI managed to narrow losses by falling 12 points or 0.8% to 1,565, but it underperformed the region as up to Thursday the index was down 0.9% against the 0.7% rise in the MSCI Asia ex-Japan. Average daily trading value rose 28% weekon-week (WoW) to RM1.87 billion (RM1.46 billion previously), which is 17% above the 3-month average of RM1.60 billion.

Equity Market Outlook
We believe the local equity market will continue to take its cue from Wall Street and regional markets. We remain cautiously optimistic on the local bourse.

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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