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Equity market could get caught in range-bound mode


“In fact, the second quarter has been contributing 12.4% to the full-year total return, on the average. Having said that, the less attractive valuation of FBM KLCI could potentially cap the upside as well. Hence, we reckon that the local equity market could be trapped in a wide range-bound mode until we see more exciting catalysts,” Kenanga Research analyst Chan Ken Yew(pic) said.

“In fact, the second quarter has been contributing 12.4% to the full-year total return, on the average. Having said that, the less attractive valuation of FBM KLCI could potentially cap the upside as well. Hence, we reckon that the local equity market could be trapped in a wide range-bound mode until we see more exciting catalysts,” Kenanga Research analyst Chan Ken Yew(pic) said.

PETALING JAYA: While prevailing uncertainties such as the US interest rate direction, oil price movement and goods and services tax (GST) implementation will continue to overshadow market sentiment, the upcoming 11th Malaysia Plan (11MP) and Invest Malaysia (IM) conference might give the local market a boost.

Kenanga Research analyst Chan Ken Yew, who has a “neutral” call on the second quarter, said the supportive domestic excess liquidity condition and improving investor sentiment should limit the market downside.

Corporate News , KLCI , stock market , Chan Ken Yew

   

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