Market corrections ‘temporary’, Malaysia growing says Deutsche Bank
Don’t worry yet, the recent fall in stocks around the Asean region is just a “temporary” and “healthy” correction based on profit-taking and inflationary pressure, says Deutsche Bank.
DB continues to favor Asean markets, said its main representative in Malaysia/Asean, Teoh Su-Yin. She also cautioned investors, however, shouldn’t expect a repeat of last year’s returns when Thailand, Malaysia, Indonesia and the Philippines were Asia’s top four markets in terms of value. Indonesia and the Philippines in particular have seen drops in the past week, with other regionals likely to follow.
Teoh said Deutsche Bank regards Bursa Malaysia as a “growth market”, setting a 1,790 point target for the Kuala Lumpur Composite Index (KLCI) in 2011, with reported corporate earnings growing 26% on the back of palm oil, construction and results from large Malaysian corporations operating in Indonesia, such as CIMB and Petronas Chemicals Group. A third of Malaysian earnings came from outside the country itself, offering the kind of region-wide ‘footprint’ not seen in the rest of Asean.
source & article: Business Times
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