GLOBAL SHARES TO REMAIN STRONG

By Tengku Noor Shamsiah Tengku Abdullah

SINGAPORE, April 9 (Bernama) -- Global shares are likely to remain strong on
the back of still cheap valuation, profit recovery and easy global conditions,
says Head of Investment Strategy and Chief Economist, AMP Capital Investors, Dr
Shane Oliver.

He said the past week has seen the European Central Bank and China raise
interest rates, Portugal seek a bailout and world oil prices continue to rise.

"Despite this, share markets have continued to remain strong helped by
decent economic data and takeover activity," he told Bernama.

Although European debt problems, rising oil prices, the squabble over the US
budget and debt ceiling pose risks for shares, Shane said: "Our assessment
remains that the recovery in shares has further to go on the back of
still cheap valuations, continuing global economy and easy global monetary
conditions.

Shane said a major focus for investors in the week ahead would be the
release, on Friday, of Chinese economic data for March.

"We expect Chinese economic data to show moderation in March quarter GDP
growth to a more sustainable 9.5 per cent pace.

However, Shane said the bad news would likely be a pick up in inflation to
5.2 per cent, from 4.9 per cent, in February.

In the US, assuming the government is still open, March retail sales data
due Wednesday are likely to show modest growth, increases in fuel prices are
likely to boost headline inflation data, due Friday, by 0.5 per cent but core
inflation was likely to remain benign.

A survey of New York regional manufacturers and of consumer sentiment, both
due on Friday, will also be watched closely.

The March quarter profit reporting season will also start to get underway
with the consensus looking for a 13 per cent rise in earnings on year ago
levels.