Wednesday, January 11, 2012

FBM KLCI Eased Moderately on Profit-Taking, 3 - 6 January 2012

The local equity market bucked the regional trend in the first week of the year by losing 1.1% or 16.6 points week-on-week (WoW) . The FBM KLCI underperformed the region which registered positive gains in the New Year, within the first week the MSCI FexJ gained 0.5%. Average daily trading value for the week rose 23.9% to RM1.45 billion (RM1.17 billion previously), which recovered above the 3-month average of RM1.40 billion.

Equity Market Outlook
We expect the market to continue consolidating. As more and more investors back from year-end holidays, selling pressure should gain momentum as the underlying concern over the European sovereign debt crisis still persists. If the market fails to hold above the strong psychological level of 1,500 points, investors should expect the market to pullback to 1,485 points.

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

Source: Source: ING Funds Berhad

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