ID :
207958
Mon, 09/19/2011 - 08:46
Auther :
Shortlink :
https://oananews.org//node/207958
The shortlink copeid
ACTION NEEDS TO BE TAKEN TO RAISE INVESTORS' CONFIDENCE IN MALAYSIAN EQUITIES
KUALA LUMPUR, Sept 19 (Bernama) -- Malaysian equities could sink deeper
unless concrete action is taken to raise investors' confidence, said
HwangDBS Vickers Research Monday.
The research house said the FBM KLCI is still on a declining course and
beyond any short-term relief rebound, the benchmark index would probably make
its way to dip beneath the psychological mark of 1,400 points soon.
According to the research house, foreign money was exiting Asian stocks and
net foreign selling was registered last week in Thailand, Indonesia and the
Philippines.
HwangDBS Vickers said foreign funds would continue to withdraw from emerging
markets across the region if risk-averse investors believe the ailing economic
and monetary conditions in the United States and Europe would deteriorate
further going forward.
Their pessimistic outlook could be either reinforced or softened this week
after the outcome of the US Federal Open Market Committee meeting on Tuesday
and Wednesday, the research house said.
"While the policymakers are expected to keep interest rates low, at least
through the mid-2013 level, of more interest is whether there will be
announcements on policy initiatives or interventions to stimulate the weakening
economic fundamentals.
"Should it turn out to be a non-event, we suspect the inclination to dump
shares will return," HwangDBS said.
The FBM KLCI is facing further downside risks after falling out from the
symmetrical triangle formation, the research house said.
"A breakout below this pattern would be read as a bearish signal.
"From a technical perspective, a deeper plunge could be on the cards should
the bellwether, currently at 1,430.93, slide lower than the recent trough of
1,423.47.
"This represents a drop of 11 per cent down from a peak of 1,597.08 on
July 11, this year," the research house added.
HwangDBS said, if so, then the FBM KLCI, as it gets nearer to the
psychological mark of 1,400, may possibly test and subsequently tumble past its
immediate support level of 1,415 and making its way to the next defence line of
1,395.
On the upside, HwangDBS said that following last week's market correction,
the first two support-turned-resistance thresholds are presently at 1,435 and
1,465, respectively.
unless concrete action is taken to raise investors' confidence, said
HwangDBS Vickers Research Monday.
The research house said the FBM KLCI is still on a declining course and
beyond any short-term relief rebound, the benchmark index would probably make
its way to dip beneath the psychological mark of 1,400 points soon.
According to the research house, foreign money was exiting Asian stocks and
net foreign selling was registered last week in Thailand, Indonesia and the
Philippines.
HwangDBS Vickers said foreign funds would continue to withdraw from emerging
markets across the region if risk-averse investors believe the ailing economic
and monetary conditions in the United States and Europe would deteriorate
further going forward.
Their pessimistic outlook could be either reinforced or softened this week
after the outcome of the US Federal Open Market Committee meeting on Tuesday
and Wednesday, the research house said.
"While the policymakers are expected to keep interest rates low, at least
through the mid-2013 level, of more interest is whether there will be
announcements on policy initiatives or interventions to stimulate the weakening
economic fundamentals.
"Should it turn out to be a non-event, we suspect the inclination to dump
shares will return," HwangDBS said.
The FBM KLCI is facing further downside risks after falling out from the
symmetrical triangle formation, the research house said.
"A breakout below this pattern would be read as a bearish signal.
"From a technical perspective, a deeper plunge could be on the cards should
the bellwether, currently at 1,430.93, slide lower than the recent trough of
1,423.47.
"This represents a drop of 11 per cent down from a peak of 1,597.08 on
July 11, this year," the research house added.
HwangDBS said, if so, then the FBM KLCI, as it gets nearer to the
psychological mark of 1,400, may possibly test and subsequently tumble past its
immediate support level of 1,415 and making its way to the next defence line of
1,395.
On the upside, HwangDBS said that following last week's market correction,
the first two support-turned-resistance thresholds are presently at 1,435 and
1,465, respectively.
