Overseas investors who sold the most Malaysian stocks in at least two years in August may sell more shares even as the government pledges reforms to attract foreign capital, CIMB Group Holdings Bhd said.
Worsening global economic turmoil may cause investors to keep unloading the nation's equities, according to Terence Wong, head of research at Kuala Lumpur-based CIMB, which was ranked third for Malaysian research in Institutional Investor's 2010
Promises by Prime Minister Datuk Seri Najib Razak to abolish laws allowing the government to detain citizens without trial as well as easing media rules will not be enough to boost confidence in the short term, Wong said.
"It's certainly positive news, but foreign investors' decision to invest in Malaysia or any country for that matter has now more to do with short-term developments in Europe and the US," Wong said.
"It's good news for the longer term, but unlikely to affect shorter-term investment decisions."
"If the bearish mood continues, there will be more selling," Wong said in an interview.
"We're playing catch-up with the other markets; we're among the most expensive in the region."
The analyst cut on September 5 his year-end forecast for Malaysia's stock index to 1,580 from 1,700.
Read more: 'Bursa playing catch-up with regional markets' http://www.btimes.com.my/Current_News/BTIMES/articles/rsell/Article/#ixzz1YRLcgfFz
Worsening global economic turmoil may cause investors to keep unloading the nation's equities, according to Terence Wong, head of research at Kuala Lumpur-based CIMB, which was ranked third for Malaysian research in Institutional Investor's 2010
Promises by Prime Minister Datuk Seri Najib Razak to abolish laws allowing the government to detain citizens without trial as well as easing media rules will not be enough to boost confidence in the short term, Wong said.
"It's certainly positive news, but foreign investors' decision to invest in Malaysia or any country for that matter has now more to do with short-term developments in Europe and the US," Wong said.
"It's good news for the longer term, but unlikely to affect shorter-term investment decisions."
"If the bearish mood continues, there will be more selling," Wong said in an interview.
"We're playing catch-up with the other markets; we're among the most expensive in the region."
The analyst cut on September 5 his year-end forecast for Malaysia's stock index to 1,580 from 1,700.
Read more: 'Bursa playing catch-up with regional markets' http://www.btimes.com.my/Current_News/BTIMES/articles/rsell/Article/#ixzz1YRLcgfFz
No comments:
Post a Comment