KUALA LUMPUR: CIMB Equities Research said Malaysia has not been spared the global stockmarket rout triggered by concerns over a slowdown in US economic growth and S&P's downgrade of its credit rating.
It said on Tuesday, Aug 9 the sharp pullback, though painful, is not dissimilar to the sharp consolidation in April-May 2010 when regional stock markets gave up 14%-27% and the KLCI declined by a hefty 234 points or 15%.
'We believe that the bullish story for the region and Malaysia is still intact though any recovery is likely to be volatile and uneven. Share price weakness is an opportunity to bottom-fish, albeit gradually as we expect another ugly trading session today on the back of Wall Street's 6% plunge yesterday.
'Although we may revise down slightly our end-2011 KLCI target of 1,700 in view of the disappointing results season so far, we expect to keep our OVERWEIGHT call on the market,' CIMB Equities Research said.
It said on Tuesday, Aug 9 the sharp pullback, though painful, is not dissimilar to the sharp consolidation in April-May 2010 when regional stock markets gave up 14%-27% and the KLCI declined by a hefty 234 points or 15%.
'We believe that the bullish story for the region and Malaysia is still intact though any recovery is likely to be volatile and uneven. Share price weakness is an opportunity to bottom-fish, albeit gradually as we expect another ugly trading session today on the back of Wall Street's 6% plunge yesterday.
'Although we may revise down slightly our end-2011 KLCI target of 1,700 in view of the disappointing results season so far, we expect to keep our OVERWEIGHT call on the market,' CIMB Equities Research said.
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