STRATEGY (July Outlook): Get Ready to Sell
Although the KLCI chalked up a decent performance in June with a 31-pt rise, the bout of profit taking in the middle of the month sapped the strength of our cyclical top picks, with only MMC eventually outperforming. While we see the PM’s announcement of capital market and property liberalisation as being positive, the market reaction was rather muted. For July, we caution that the KLCI could well fall short of our initial Sell trigger of 1150 pts. We switch to a more defensive strategy and advise investors to get ready to sell on a significant retracement.
Although the KLCI chalked up a decent performance in June with a 31-pt rise, the bout of profit taking in the middle of the month sapped the strength of our cyclical top picks, with only MMC eventually outperforming. While we see the PM’s announcement of capital market and property liberalisation as being positive, the market reaction was rather muted. For July, we caution that the KLCI could well fall short of our initial Sell trigger of 1150 pts. We switch to a more defensive strategy and advise investors to get ready to sell on a significant retracement.
