Eroded sentiments saw investors sidelined as the DJI Average just managed to stay afloat at 16,443.34, up a mere 13.87 points overnight. Tension in the Ukraine coupled with renew fears over Eurozone’s economic health prompted widespread sell-down on Europe as equities all ended in negative territory. Asian markets did not fare any better as selling activities took the limelight with most major markets closed in the red predominantly due to foreign selling within the region. Locally the FBMKLCI lost 6.77 points at 1,869.92 as the unloading by foreign funds were quite apparent. There was a net outflow of almost RM172m from the local bourse as sentiments are becoming more risk averse. Despite the recent correction, our market remains expensive at a PE of 17x which we doubt will be matched by corporate earnings growth for 2014. As such, we expect prevailing correction to persist with the immediate support seen at the 1,865 level.
Posted on: Thu, 07 Aug 2014 01:17:05 +0000
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