Monday 20 April 2009.

DAILY MARKET REPORT.

Friday Markets Closing Prices.

KLCI 965.17 up 3.89.
DJIA 8,131.33 up 5.90 or 0.07%.
Crude Oil USD50.33.
July FCPO RM2,435.
Ringgit 3.6140.


STOCK MARKET OUTLOOK.

After careful analysis of all the latest data available on the Malaysian and global economy, most of the data were pointing toward a long and winding road to economy recovery.

Nevertheless, I believed the global economics and financial markets recovery process is gathering momentum after the affected countries pumped in more than US$2 trillion on fiscal stimulus, the United States spending US$12.8 trillion trying to fix their financial system and were prepared to do more, and also an ultra low interest rates monetary policy. The latest was US$1 trillion pledged new money to IMF after the G20 meeting to shore up the troubled world economies.

Therefore, I forecasted the stock market trend reversal . The KLCI long term upward trend growth prospect to again test the previous all time high of 1524 achieved during the administration of the ex Prime Minister Tun Abdullah Badawi in mid January 2008. I forecast the KLCI to make a new high with a modest target of 1661 under the able leadership of the new Premier YAB Dato Seri Najib Tun Razak and Deputy Prime Minister YAB Tan Sri Dato Muhyiddin Yassin.

RECOMMENDATION - STRONG BUY on the KLCI stocks with anything on the Composite Index below the 880 to 860 level considered as an absolute bargains.

For details write up on individual stocks , please read my "Malaysian Stock Market Outlook For 2Q 2009" posted on Thursday 9 April 2009.


For further inquiries please call:-
Kamel Bin Mohd Yusoh.
Institutional Dealer.
Kenanga Investment Bank Bhd.
013-6306544 or 03-21634549/50.
April 20, 2009.