KUALA LUMPUR, Sept 19 (Bernama) -- Malaysian equities could sink deeper unless concrete action is taken to raise investors' confidence, said HwangDBS Vickers Research Monday.
The research house said the FBM KLCI is still on a declining course and beyond any short-term relief rebound, the benchmark index would probably make its way to dip beneath the psychological mark of 1,400 points soon.
According to the research house, foreign money was exiting Asian stocks and net foreign selling was registered last week in Thailand, Indonesia and the Philippines.
HwangDBS Vickers said foreign funds would continue to withdraw from emerging markets across the region if risk-averse investors believe the ailing economic and monetary conditions in the United States and Europe would deteriorate further going forward.
Their pessimistic outlook could be either reinforced or softened this week after the outcome of the US Federal Open Market Committee meeting on Tuesday and Wednesday, the research house said.
"While the policymakers are expected to keep interest rates low, at least through the mid-2013 level, of more interest is whether there will be announcements on policy initiatives or interventions to stimulate the weakening economic fundamentals.
"Should it turn out to be a non-event, we suspect the inclination to dump shares will return," HwangDBS said.
The research house said the FBM KLCI is still on a declining course and beyond any short-term relief rebound, the benchmark index would probably make its way to dip beneath the psychological mark of 1,400 points soon.
According to the research house, foreign money was exiting Asian stocks and net foreign selling was registered last week in Thailand, Indonesia and the Philippines.
HwangDBS Vickers said foreign funds would continue to withdraw from emerging markets across the region if risk-averse investors believe the ailing economic and monetary conditions in the United States and Europe would deteriorate further going forward.
Their pessimistic outlook could be either reinforced or softened this week after the outcome of the US Federal Open Market Committee meeting on Tuesday and Wednesday, the research house said.
"While the policymakers are expected to keep interest rates low, at least through the mid-2013 level, of more interest is whether there will be announcements on policy initiatives or interventions to stimulate the weakening economic fundamentals.
"Should it turn out to be a non-event, we suspect the inclination to dump shares will return," HwangDBS said.
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