Bursa Malaysia Stock Exchange Performance by Sector 2011

Bursa Malaysia Stock Exchange Sector Performance 2011

malaysia sector performance

Above: Performance by Sector (click to enlarge)


Consumer sector took the lead, supported by its ‘recession-resistance’ attribute. The Consumer Index was the top performer and the sole gainer among all the indices after having registered a gain of 1.5% in 2011. It is not at all surprising that the Consumer sector managed to outperform all the other sectors due to its well-known ‘recession-resistance’ attribute.  During a period of heightened economic uncertainties, investors generally put more faith in companies with are expected to be least subjected to the cyclicality of the economy. We have a Neutral recommendation on the Consumer sector.

Technology Index
…the biggest loser.  The Technology Index recorded the worst performance of
-26.1% in 2011. That makes it two successive years at the chart bottom. Nonetheless we reiterate our view that the semiconductor sub-sector is expected to outperform its broader sector as we believe that the growth in tablets will have a positive impact on the semiconductor industry. We have a Neutral recommendation on the Semiconductor sector.

Construction Index
…the second biggest loser. The Construction Index recorded the second worst performance amongst all local indices with a loss of 16.1% in 2011. The cyclical nature of
the Construction sector exposes it to the possible deceleration in the economy. The slew of already announced and on-going ETP-related projects may nevertheless provide a downside buffer to the Construction sector. However we expect a slowdown in the property-related construction activities as well as stiffer competition for jobs among construction companies that may directly impact overall margins going forward. We have a Neutral recommendation on the Construction sector.


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