KUALA LUMPUR: Malaysian investors continue to be positive on the local stock market, with 59% of local respondents of an international survey conducted by Franklin Templeton Investments believing it would do better in 2013.
This was despite 63% of local respondents adopting a more conservative asset investing strategy.
“Locally, this shows the continued faith in the stock market on the back of good fundamentals and growth in Malaysia and it is no surprise to us that investors are positive on the outcome of the stock market,” Franklin Templeton Investment’s Malaysian country head Sandeep Singh said in an interview.
The “Franklin Templeton Global Investor Sentiment Survey” was conducted by ORC International from Jan 14-25, 2013, and surveyed 9,518 individuals in 19 countries, including Malaysia.
The fund manager manages about RM10.68bil for Malaysian investors in total, with investments in equity and fixed income comprising about 10% of this amount.“Locally, this shows the continued faith in the stock market on the back of good fundamentals and growth in Malaysia and it is no surprise to us that investors are positive on the outcome of the stock market,” Franklin Templeton Investment’s Malaysian country head Sandeep Singh said in an interview.
Sandeep also noted that Malaysians now strongly believed that Asia offered the best opportunities’ for this year and the next 10 years in the areas of equity and fixed income investments.
“Malaysian investors are at the top-end in their expectations of returns over the next 10 years.
“They (investors) are expecting higher returns on their portfolio in 2013 compared to 2012, at 11.5% versus 8.5%.
“While over the next 10 years, they are anticipating a return of 19.5%, which is among the highest in Asia along with India.
“Generally, this is in line with the trend across many other countries, where expectations this year are higher than in 2012, which is a sign of increased optimism in the market,” Sandeep added.
The survey also specifically noted that men in Malaysia were more likely than women to think the stock market would do better in 2013.
However, in the next 10 years, the survey showed that women expected higher returns than men.
The findings also showed that less-affluent investors with less than RM50,000 in household income were the most likely’ to believe the market would go up this year.
Sandeep said equity valuations compared to historical averages had “a lot of potential to grow” in Malaysia and other international markets.
“There is enough steam left for people to look at equity as an investment class.
“As Sir John Templeton had said before, it is not timing the market but time in the market.
“You can make money trading once or twice but you cannot use that as a long-term strategy.
“There is some run-up but there are still opportunities,” Sandeep said.
He also said 63% of local respondents opted for a more conservative approach to asset investing.
This is due to the volatile economic conditions worldwide.
“They want to ensure they didn’t lose their shirt.
“They want to see whether their downside protection was there, while ensuring they built their portfolio.
“People like a slow and steady approach now without dramatic changes in asset allocation,” he said.source : The Star By DANIEL KHOO