Sunday 21 October 2012

Shopping spree sends Bursa to all-time high

Saturday October 20, 2012

Shopping spree sends Bursa to all-time high

The FBM KLCI closed at a record 1,666.35. However, the broader market was weaker in line with Asian bourses, with declining stocks on Bursa Malaysia beating advancers 409 to 294 and 338 counters unchanged.
“I think the positive run had been anticipated, backed by the fundamentals. It is still on an evolving rotation with the telecommunication, banking and consumer stocks getting a fair bit of interest,” said Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew.
He said banking stocks were relatively attractive right now as it had rather been muted recently due to the upcoming Basel III framework that would see banks needing higher capital requirement, driving up the cost of lending.
“With the overall price to earnings ratio at about 11.5 times, it (banking stocks) is attractive when compared with the telco industry which some stocks are trading at about 30 times, except for Axiata, which is still the cheapest among the telco stocks. Funds might be positioning themselves now ahead of the upcoming results season, and shifting their funds to more attractive sectors of the market,” he said.


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