US is heading for recession. This now appears to be more fact than prediction, and this consensus is shared among most research houses. President Bush calls for economic stimulus but investors do not see this as the solution, hence the selling down last week. The corrective trend is expected to persist in the coming weeks. US consumers will save more and spend less. And this spells trouble for Asia, especially the export-dependent states.
But the positive news is that not everyone is a loser in times like these. Who are these people? How do we become one of them?
Informed Investment have suggested going for the defensive stocks and going where the money is. The defensive stocks in times like these have to be the consumer-based and health-industry related stocks.
CREDIT SUISSE shared the same view. They recommended investors KPJ Healthcare. It gave it a RM5.80 target price; implying an upside of 88 per cent from the stock's closing price of RM3.08 on Friday. Credit Suisse also maintained the view that Middle Eastern oil money is flowing into Malaysia. So more reasons to stay with the Malaysian market.
The other stocks recommeded are: E&O Property Development (target price of RM4.50), Salcon (RM1.72), Boustead Holdings (RM9.75) and Muhibbah Engineering (RM5.30).
Other notable news...
SHARES of Ramunia Holdings Bhd, which makes offshore structures for oil and gas companies, were suspended from trading yesterday, pending the announcement of an acquisition.
PROTON Holdings Bhd's latest sedan which cost RM450 million to develop is expected to further boost the national carmaker's bid to regain top market position after the successful Persona 1.6 launch six months ago, Business Times reported. But to impress investors further, the company need to push hard for overseas sales and importantly, getting a strategic partner.
And for the tehnical analyst in you...
The week ahead should see the market consolidating.
But the positive news is that not everyone is a loser in times like these. Who are these people? How do we become one of them?
Informed Investment have suggested going for the defensive stocks and going where the money is. The defensive stocks in times like these have to be the consumer-based and health-industry related stocks.
CREDIT SUISSE shared the same view. They recommended investors KPJ Healthcare. It gave it a RM5.80 target price; implying an upside of 88 per cent from the stock's closing price of RM3.08 on Friday. Credit Suisse also maintained the view that Middle Eastern oil money is flowing into Malaysia. So more reasons to stay with the Malaysian market.
The other stocks recommeded are: E&O Property Development (target price of RM4.50), Salcon (RM1.72), Boustead Holdings (RM9.75) and Muhibbah Engineering (RM5.30).
Other notable news...
SHARES of Ramunia Holdings Bhd, which makes offshore structures for oil and gas companies, were suspended from trading yesterday, pending the announcement of an acquisition.
PROTON Holdings Bhd's latest sedan which cost RM450 million to develop is expected to further boost the national carmaker's bid to regain top market position after the successful Persona 1.6 launch six months ago, Business Times reported. But to impress investors further, the company need to push hard for overseas sales and importantly, getting a strategic partner.
And for the tehnical analyst in you...
The week ahead should see the market consolidating.
Following the sharp technical pullback and the weakness displayed by its daily MACD, the KLCI is likely to consolidate before embarking on its base building phase once again.
The coming week, the KLCI’s overhead resistance zone will hover at the 1,443 to 1,477 points while its downside support will be at 1,402 to 1,436 points.
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