Wednesday, December 7, 2011

FBM KLCI Closes The Week On Positive Territory, 29 Novermber - 2 December 2011

It was a good week for equity as the concerted effort by several central banks to slash the penalty rate on dollar liquidity generated positive sentiment. It managed to break the 1,500 points on Thursday before tapering off to 1,489 points as investors accumulate blues that have strong fundamental. For the week, the FBM KLCI jumped 57 points or 4% to 1,489points and briefly broke through the 1,500 points level before easing back. The FBMKLCI underperformed the region for the first time in five weeks as up to Thursday the index was up 3.8% against the steeper 8.7% surge by the MSCI FExJ. Average daily trading value for the week rose 54% to RM1.75 billion (RM1.14 billion previously), which was 11% above the three-month average of RM1.57 billion.

Equity Market Outlook
We believe the market still has strength to move further underpinned by policy respond and seasonality. In the short term, we expect the market continue to consolidate with upward bias as investors position themselves for year end window dressing. On the downside, the market immediate support is at 30 days smooth moving average (SMA) situated at 1,464 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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