Showing posts from January, 2011

Malaysia Stock Market Strategy 2011 by MIB

2011-YE  KLCI target: 1,710 Positives dominate. We expect Malaysian equities to scale new highs in 2011 supported by: (i) liquidity flows as funds continue to move into emerging markets, courtesy of the US’ 2nd dose of quantitative easing (QE2), (ii) the growing possibility of an early general election (GE), (iii) domestic investment upcycle from direct investments and the Economic Transformation Programme (ETP) implementation, and (iv) corporate exercises – M&As, privatisations  and GLIC divestments – helped by low interest rates and ample liquidity.

Set for a re-rating.
PM Najib’s 21 months in office (since 3 Apr 2009) has seen major changes being introduced, reminiscence of what his father, “Malaysia’s Father of Development”, had accomplished as the 2nd PM. The move to a high-income economy, though late by a decade, will now have to be fast-tracked, with greater resolve. The engagement of businesses and  rakyat in drawing up the ETP was unprecedented. 2011 will be the year …