Major correction on Bursa unlikely
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) is not due for a major correction even if the US benchmark index Dow Jones Industrial Average hits 12,000 points, analysts say.
The Dow Jones hit 11,787 points last Friday, 55 points higher than the previous day.
Jupiter Securities Sdn Bhd head of research Pong Teng Siew said the FBM KLCI is likely to trade sideways until the end of this month, before resuming a climb.
Pong said worldwide markets, including the Dow Jones and the FBM KLCI, will retain an upward bias so long as there is positive economic data.
He told Business Times any fall- out will be due to a China hard landing, a break-up of the eurozone and runaway inflation.
The research house's FBM KLCI fair value for 2011 is 1,670 points, but Pong said there is possibility for some overshooting.
OSK Research Sdn Bhd director Chris Eng said the KLCI will move upwards and he attributes this to positive corporate earnings and the Economic Transformation Programme (ETP).
"I am not seeing a strong coupling anymore between the KLCI and the Dow. We expect the KLCI to go up but not because the Dow would hit 12,000 points.
"We are seeing fairly good results on the KLCI and that should boost the market in the short term.
"We expect the market to be quiet in February, moving upwards in March because of new projects announcement under the ETP," Eng said.
OSK Research stated its 2011 KLCI fair value at 1,648 points premised on 16 times price earnings ratio on 2011 KLCI earnings.
HwangDBS Vickers Research Sdn Bhd expects the FBM KLCI to reach a new high with its year-end target of 1,730, led by positive domestic factors and good stock opportunities.
"We expect the FBM KLCI to rise 11 per cent from our previous target of 1,650," said its research analyst, Wong Ming Tek.
At the close yesterday, the FBM KLCI rose 4.60 points to 1,574.49. It had opened 3.58 points higher to 1,573.47.
Top gainers yesterday were Selangor Properties Bhd, Benalec Holdings Bhd and Tradewinds (M) Bhd, each closing 40 sen, 34 sen and 32 sen higher at RM4.10, RM1.34 and RM7.96 respectively.
The Dow Jones hit 11,787 points last Friday, 55 points higher than the previous day.
Pong said worldwide markets, including the Dow Jones and the FBM KLCI, will retain an upward bias so long as there is positive economic data.
He told Business Times any fall- out will be due to a China hard landing, a break-up of the eurozone and runaway inflation.
The research house's FBM KLCI fair value for 2011 is 1,670 points, but Pong said there is possibility for some overshooting.
OSK Research Sdn Bhd director Chris Eng said the KLCI will move upwards and he attributes this to positive corporate earnings and the Economic Transformation Programme (ETP).
"I am not seeing a strong coupling anymore between the KLCI and the Dow. We expect the KLCI to go up but not because the Dow would hit 12,000 points.
"We are seeing fairly good results on the KLCI and that should boost the market in the short term.
"We expect the market to be quiet in February, moving upwards in March because of new projects announcement under the ETP," Eng said.
OSK Research stated its 2011 KLCI fair value at 1,648 points premised on 16 times price earnings ratio on 2011 KLCI earnings.
HwangDBS Vickers Research Sdn Bhd expects the FBM KLCI to reach a new high with its year-end target of 1,730, led by positive domestic factors and good stock opportunities.
"We expect the FBM KLCI to rise 11 per cent from our previous target of 1,650," said its research analyst, Wong Ming Tek.
At the close yesterday, the FBM KLCI rose 4.60 points to 1,574.49. It had opened 3.58 points higher to 1,573.47.
Top gainers yesterday were Selangor Properties Bhd, Benalec Holdings Bhd and Tradewinds (M) Bhd, each closing 40 sen, 34 sen and 32 sen higher at RM4.10, RM1.34 and RM7.96 respectively.
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