Wednesday, January 4, 2012

FBM KLCI Ends 2011 Positively, 27- 30 December 2011

Equity
The local equity market bucked the regional trend by registering strong positive return of 2.3% or 34.5 points week-on-week (WoW) . Investors were positioning for big cap with strong dividend yield. The FBM KLCI outperformed the region as up to Thursday the index was up 1.0% against the 0.7% rise by the MSCI FExJ. Average daily trading value for the week rose 0.7% to RM1.17 billion (RM1.16 billion previously), which was 17% below the three-month average of RM1.41 billion.

Equity Market Outlook
We expect market to consolidate after the year end window dressing. Buying was exhausted as volume started trending down. As more and more investors back from year-end holidays, selling pressure should gains momentum which will cap the upside due to worsening global economy condition. If the market fails to hold above the 1,520 points, investors should expect the market to pullback to 1,500 points which is strong psychological support.

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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