Read more: http://www.btimes.com.my/articles/20120103231806/Article/
Kuala Lumpur: The Malaysian stock market started the new year on a weak note, bucking the regional trend, as investors locked in profits from a rally on the last trading day of 2011. It was the only market in the Asia Pacific that slumped yesterday, with profit-taking in banking stocks steering the key FBM KLCI index 17.19 points, or 1.1 per cent, lower to 1,513.14. Analysts said the poor performance at home was not surprising given how government-linked funds had strongly supported the market on December 30, enabling the 30-stock index to finish 2011 on a high note. "The market is merely correcting now after that strong finish," one remarked. Analysts and fund managers expect more selling of blue chips to be done before buyers eventually emerge. Lower liners, however, are expected to generate strong buying interest, as they did yesterday. Penny stocks like Maxbiz Corp and Xidelang Holdings fared well and accounted for the bulk of the day's 100 most actively traded counters. OSK Research, in a market strategy report yesterday, said it has a "sell" call on the market this month, after its "buy" last month. It advised investors to remain defensive, sell when the index breaks above 1,500 points and buy when it approaches 1,300 points. "We see the market as being overpriced after the recent rally and lacking in clear fundamentals to support such pricing," its research head Chris Eng said. OSK is nevertheless keen on "unconventional" small stocks like Sarawak Oil Palm, JCY, Supermax, OldTown and Freight Management. Investors are still in a cautious mode, worried about how Europe's debt woes and more recently, political tension between Iran and the US, could affect the global economy. "The risks in January include a meeting between German and French leaders (on the debt resolution) which may be a letdown, the verdict for the trial of Malaysia's opposition leader (Datuk Seri Anwar Ibrahim) and the potential of an early Malaysian general election," OSK said. Markets in the region started the year well - Singapore's key index gained 1.6 per cent to 2,688.36, Indonesia's by 1.3 per cent to 3,857.88, Hong Kong's by 2.4 per cent to 18,877.41 and South Korea's by 2.7 per cent to 1,875.41 - as sentiment was boosted by better-than-expected manufacturing data from China. At home, Maybank lost 2.8 per cent to RM8.34, CIMB Group eased 2.7 per cent to RM7.24, while Public Bank shed 1.6 per cent to RM13.16. Malaysia Airlines gained 13 per cent to RM1.47.
Personal view: 'Yes, a lot of profit locking happened. New year also means School Fees!!!'
Kuala Lumpur: The Malaysian stock market started the new year on a weak note, bucking the regional trend, as investors locked in profits from a rally on the last trading day of 2011. It was the only market in the Asia Pacific that slumped yesterday, with profit-taking in banking stocks steering the key FBM KLCI index 17.19 points, or 1.1 per cent, lower to 1,513.14. Analysts said the poor performance at home was not surprising given how government-linked funds had strongly supported the market on December 30, enabling the 30-stock index to finish 2011 on a high note. "The market is merely correcting now after that strong finish," one remarked. Analysts and fund managers expect more selling of blue chips to be done before buyers eventually emerge. Lower liners, however, are expected to generate strong buying interest, as they did yesterday. Penny stocks like Maxbiz Corp and Xidelang Holdings fared well and accounted for the bulk of the day's 100 most actively traded counters. OSK Research, in a market strategy report yesterday, said it has a "sell" call on the market this month, after its "buy" last month. It advised investors to remain defensive, sell when the index breaks above 1,500 points and buy when it approaches 1,300 points. "We see the market as being overpriced after the recent rally and lacking in clear fundamentals to support such pricing," its research head Chris Eng said. OSK is nevertheless keen on "unconventional" small stocks like Sarawak Oil Palm, JCY, Supermax, OldTown and Freight Management. Investors are still in a cautious mode, worried about how Europe's debt woes and more recently, political tension between Iran and the US, could affect the global economy. "The risks in January include a meeting between German and French leaders (on the debt resolution) which may be a letdown, the verdict for the trial of Malaysia's opposition leader (Datuk Seri Anwar Ibrahim) and the potential of an early Malaysian general election," OSK said. Markets in the region started the year well - Singapore's key index gained 1.6 per cent to 2,688.36, Indonesia's by 1.3 per cent to 3,857.88, Hong Kong's by 2.4 per cent to 18,877.41 and South Korea's by 2.7 per cent to 1,875.41 - as sentiment was boosted by better-than-expected manufacturing data from China. At home, Maybank lost 2.8 per cent to RM8.34, CIMB Group eased 2.7 per cent to RM7.24, while Public Bank shed 1.6 per cent to RM13.16. Malaysia Airlines gained 13 per cent to RM1.47.
Personal view: 'Yes, a lot of profit locking happened. New year also means School Fees!!!'
1 comment:
OSK warns of January risks
from Business Times
"The risks in January include a meeting between German and French leaders (on the debt resolution) which may be a letdown, the verdict for the trial of Malaysia's opposition leader (Datuk Seri Anwar Ibrahim) and the potential of an early Malaysian general election," OSK said. Markets in the region started the year well - Singapore's key index gained 1.6 per cent to 2,688.36, Indonesia's by 1.3 per cent to 3,857.88, Hong Kong's by 2.4 per cent to 18,877.41 and South Korea's by 2.7 per cent to 1,875.41 - as sentiment was boosted by better-than-expected manufacturing data from China. At home, Maybank lost 2.8 per cent to RM8.34, CIMB Group eased 2.7 per cent to RM7.24, while Public Bank shed 1.6 per cent to RM13.16. Malaysia Airlines gained 13 per cent to RM1.47. By Adeline Paul Raj
Post a Comment