ID :
37547
Fri, 12/26/2008 - 19:09
Auther :
Shortlink :
https://oananews.org//node/37547
The shortlink copeid
M'SIA EXCHANGE TO REBOUND IN FIRST QUARTER NEXT YEAR
By Premalatha Jayaraman
KUALA LUMPUR, Dec 27 (Bernama) -- Malaysia Exchange is expected to rebound
in the first quarter of 2009 with the Kuala Lumpur Composite Index (KLCI) likely
to trade between 860 and 1,000 level on investor confidence that the RM7 billion
government's stimulus package will have positive impact on the economy.
Jupiter Securities Sdn Bhd research head, Pong Teng Siew, said the package,
announced by Deputy Prime Minister and Finance Minister, Najib Tun
Razak, was expected to boost investor confidence.
Some analysts, however, said the KLCI's recovery would only materialise at
the end of first half next year or probably later into the second half.
An analyst from Inter Pacific Research Sdn Bhd said the company did not
expect a sustainable recovery for both the global equities and KLCI.
"This can only take place when investors have greater visibility on the
depth and duration of recession and earnings downturn and further progress is
made towards resolving the global financial crisis," he said.
He said the severity of global recession depended on how well it has been
entrenched among investors and how much it has been priced into.
"Consensus is becoming increasingly unreliable. Forecasts are changing
rapidly. They are unable to answer questions to what investors believe.
"Thus, volatility will remain elevated and KLCI will stay choppy," he said.
Meanwhile, another analyst said the Asian stock markets would look
attractive next year on anticipation that there could be a silver lining in the
midst of the current gloomy global and financial climate.
HwangDBS Investment Management Bhd chief investment officer, David Ng, said
although there would be opportunities to invest in companies which offer
reasonable returns the investors would likely be selective in their pickings.
He said monetary measures taken by central banks as well as government
fiscal policies had helped to improve the global economic climate and avoid the
depression era of the 1930s.
"This will also help improve sentiment on the stock markets," he said.
Some of the measures taken by central banks this year included cutting
interest rates, pump priming, or fiscal stimulus packages, as well as guarantee
on fixed deposits, he said.
He said the market has priced in the recession and values were beginning to
emerge.
"Asian markets, especially those in Hong Kong and Singapore, will have the
most exciting prospects.
"Asian companies that are world-class and with strong balance sheets as well
as management structure will be on the radar screen of investors," he said.
Malaysia Exchange chief executive officer, Yusli Mohamed Yusoff, said
although this year has been challenging, the local bourse has performed better
compared to other markets.
Yusli said this was due to the performance of the Malaysian economy and the
companies had been doing relatively well so far this year.
However, he said, the full impact of the global crisis has yet to affect the
country.
He said as at Dec 18, 23 new companies had been listed on Malaysia Exchange.
"Among them are UEM Land Holdings Bhd, Fibon Bhd and Teo Seng Capital Bhd,"
he said.
Yusli said the exchange operator would come up with new initiatives for next
year as part of its plan to make the local market attractive.
"Among the initiatives are a much relaxed regulated framework for
short-selling in the first half of next year and the launch of direct market
access for equity market in the middle of next year.
"Malaysia Exchange is currently working with the Securities Commission to
develop the unified board structures, where the Main Board and the Second Board
are put together.
"It is also looking at revamping the Mesdaq Market," he said.
On the velocity of the market, Yusli said it was below 40 percent and the
exchange would target 60 percent in the next two years.
"About 40 percent of the trading is done by foreign investors and this shows
that they are still in the market," he said.
Meanwhile, OSK Research, in an analysis report, said 2008 was a
roller-coaster year for the KLCI as the benchmark touched a record high of
1,524.69 points on Jan 14 before plunging to a four-year low of 801.27 on Oct
28.
It said while the plantation sector constituted some 21 percent of the
KLCI's weighting in January, this had fallen to 15 percent by October given the
dip in plantation stocks.
-- BERNAMA
KUALA LUMPUR, Dec 27 (Bernama) -- Malaysia Exchange is expected to rebound
in the first quarter of 2009 with the Kuala Lumpur Composite Index (KLCI) likely
to trade between 860 and 1,000 level on investor confidence that the RM7 billion
government's stimulus package will have positive impact on the economy.
Jupiter Securities Sdn Bhd research head, Pong Teng Siew, said the package,
announced by Deputy Prime Minister and Finance Minister, Najib Tun
Razak, was expected to boost investor confidence.
Some analysts, however, said the KLCI's recovery would only materialise at
the end of first half next year or probably later into the second half.
An analyst from Inter Pacific Research Sdn Bhd said the company did not
expect a sustainable recovery for both the global equities and KLCI.
"This can only take place when investors have greater visibility on the
depth and duration of recession and earnings downturn and further progress is
made towards resolving the global financial crisis," he said.
He said the severity of global recession depended on how well it has been
entrenched among investors and how much it has been priced into.
"Consensus is becoming increasingly unreliable. Forecasts are changing
rapidly. They are unable to answer questions to what investors believe.
"Thus, volatility will remain elevated and KLCI will stay choppy," he said.
Meanwhile, another analyst said the Asian stock markets would look
attractive next year on anticipation that there could be a silver lining in the
midst of the current gloomy global and financial climate.
HwangDBS Investment Management Bhd chief investment officer, David Ng, said
although there would be opportunities to invest in companies which offer
reasonable returns the investors would likely be selective in their pickings.
He said monetary measures taken by central banks as well as government
fiscal policies had helped to improve the global economic climate and avoid the
depression era of the 1930s.
"This will also help improve sentiment on the stock markets," he said.
Some of the measures taken by central banks this year included cutting
interest rates, pump priming, or fiscal stimulus packages, as well as guarantee
on fixed deposits, he said.
He said the market has priced in the recession and values were beginning to
emerge.
"Asian markets, especially those in Hong Kong and Singapore, will have the
most exciting prospects.
"Asian companies that are world-class and with strong balance sheets as well
as management structure will be on the radar screen of investors," he said.
Malaysia Exchange chief executive officer, Yusli Mohamed Yusoff, said
although this year has been challenging, the local bourse has performed better
compared to other markets.
Yusli said this was due to the performance of the Malaysian economy and the
companies had been doing relatively well so far this year.
However, he said, the full impact of the global crisis has yet to affect the
country.
He said as at Dec 18, 23 new companies had been listed on Malaysia Exchange.
"Among them are UEM Land Holdings Bhd, Fibon Bhd and Teo Seng Capital Bhd,"
he said.
Yusli said the exchange operator would come up with new initiatives for next
year as part of its plan to make the local market attractive.
"Among the initiatives are a much relaxed regulated framework for
short-selling in the first half of next year and the launch of direct market
access for equity market in the middle of next year.
"Malaysia Exchange is currently working with the Securities Commission to
develop the unified board structures, where the Main Board and the Second Board
are put together.
"It is also looking at revamping the Mesdaq Market," he said.
On the velocity of the market, Yusli said it was below 40 percent and the
exchange would target 60 percent in the next two years.
"About 40 percent of the trading is done by foreign investors and this shows
that they are still in the market," he said.
Meanwhile, OSK Research, in an analysis report, said 2008 was a
roller-coaster year for the KLCI as the benchmark touched a record high of
1,524.69 points on Jan 14 before plunging to a four-year low of 801.27 on Oct
28.
It said while the plantation sector constituted some 21 percent of the
KLCI's weighting in January, this had fallen to 15 percent by October given the
dip in plantation stocks.
-- BERNAMA
