Thursday, September 15, 2011

FBM KLCI Edged Lower On Roller Coaster Week, 4 - 10 September 2011

The local stock market went through a week of consolidation and was under selling pressure since the start of the week. The selldown was triggered by gloomy economic outlook and downgrade of corporate earnings by analysts. But the downside was capped as US President Barrack Obama initiated USD477 billion of job packages to aid the recovery, beyond market expectation. Towards weekend the FBM KLCI managed to recover some of its losses and closed the week 0.4% lower at 1,465 points.

Equity Market Outlook

For the coming week, we expect the market to trade lower amid global uncertainties. Buying momentum is slowly fading as investors choose to stay on the sidelines after getting burned every time they try to capitalize on the rebound. Meanwhile, market sentiment is being badly affected by the prolong selldown. Only a sharper-than-expected rebounded will revitalize the current situation. The level that we think will change the investment landscape is close to 1,500 points

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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