Friday, July 31, 2009

Bursa Outlook Remains Bullish

Bursa near-term outlook remains bullish: Analysts
CIMB Research maintains an 'overweight' call on Malaysian equities with a year-end
index target of 1,220.

ANALYSTS remain bullish on the near-term outlook of the local stock market but said it is in overbought territory now, which is why the benchmark index snapped five straight days of gains yesterday.

The FTSE Bursa Malaysia KL Composite Index (FBM KLCI) fell by 7.9 points, or 0.7 per cent, to 1,164.48 points on profit-taking activities after hitting a fresh one-year high on Tuesday.

"It is, once again, a test of buyers' conviction and optimism on the market. Meanwhile, we maintain our bullish view towards the near-term market," technical analyst Shin Kao Jack said in a report yesterday.

CIMB Research yesterday maintained an "overweight" call on Malaysian equities with a year-end index target of 1,220.It kept an "outperform" rating on top picks AMMB, AirAsia, Gamuda and WCT.

CIMB noted, in a report, that foreign funds stayed net buyers in Malaysia for a third straight month in June, but the amount of net inflows (US$25.6 million) was smaller than that in April and May.

It also noted that Malaysia was the most heavily sold down market in the region.

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