Many people are in doubt about the market and feel it is very artificial. To a certain degree i do agree because they are a lot of PE 14 – 15 times counters in the market compare to below 10 times in China, Hong Kong, US, UK, Australia and Singapore.
However, our market has been semi closed up nd not highly depending on foreign funds for sometimes. We believe a few keys factors will keep the market above 1600. 1st Najib administration is pretty good capitalism. They are maximizing values of government assests in Malaysia. In short, he knows how to make good price of stock. 2nd Money become smaller, i maintain this and i do agreed to Jim roger that QE3 is somehow coming. 3rd Malaysia has created a successful internal demand.
But i do worry, crime rate, education and politics are road block to any uncertainties. In summary, we revised our year end target to above 1650 towards 1700 before election.