Wednesday, November 30, 2011

KLCI Market: Concerns Over Eurozone Dampen Market Confidence, 20-26 November 2011

Malaysia equity market performed poorly as concerns over Europe’s debt crisis continued to weigh down the market confident. Although most of the corporate results were in line with market expectation but analysts started to downgrade earning due to the gloomy outlook. For the week, the FBM KLCI fell 23points or 1.6% to close at 1,454 points. The FBM KLCI outperformed the region for the 4th week as up to Thursday the index was down 1.6% against the steeper 3.5% fall by the MSCI FExJ. Average daily trading value for the week fell 24% to RM1.14 billion (RM1.5 billion previously), which was 27% below the three-month average of RM1.57 billion.

Equity Market Outlook
The bears continued to dominate the local bourses, causing the FBM KLCI to fall for its fourth consecutive week. However the market was extremely oversold and tends to have a technical rebound before the next leg kicks in. Market will remain choppy and continue to be influenced by external factors. We see immediate support at 1,400 psychological level.

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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