Market Fairly Valued, Lacks Upside Catalysts 3
Investment thesis 3
How did KLSE fair comparatively, where are we on valuation 5
Earnings outlook improves, but recovery and valuation lag 9
Economic recovery in place 12
Malaysia’s banking sector appears sound 16
Foreign portfolio funds and ownership – underweight 18
Politics and policies are getting better 19
Liberalization of services sector to spur M&A, more to come 20
Conclusion 30
Top Buys and Sells 33
Watch list 35
Fund Flows 40
All Dedicated Asia ex Japan Equity Funds 41
Cross-border net purchases of Malaysia equities, equity offerings 42
Quant View 43
Malaysia: Unattractive 44
Appendix A-1 48