Buyer sentiment edges up on Hang Seng rally
The recent rally in the Hang Seng Index has rekindled an appetite for the market among local investors, according to sentiment polled in a survey released yesterday.
Investor confidence in a JPMorgan Asset Management survey edged up to 124 in the third quarter from 122 on a scale of zero to 200. Nearly one-quarter of the respondents expected the Hang Seng Index to top 24,000 points by March 2011.
'Without doubt, investors are turning more positive and bullish towards the market in the next six months,' said Eddy Wong, head of intermediary distribution at JPMorgan. 'We had a tough first half in 2010, but we do see the momentum picked up in the third quarter.'
The market was stagnant earlier this year amid concerns about ballooning budget deficits in developed markets. It has since rallied following signs of global stabilisation and a renewed commitment to stimulative monetary policy.
The Hang Seng Index has surged 14.7 per cent since the start of September to 23,556.5 points yesterday after slumping 6.1 per cent through the first eight months of the year.
Despite the pick-up, only 13 per cent of the respondents to the survey believed the Index had entered a bull market phase, up from 8 per cent in the previous survey. More than one in four respondents identified a property bubble bursting as the biggest market threat. Inflation and an equity bubble were the next largest concerns.
A survey released last week by ING Investment Management reported that sentiment had picked up across the region.
'A rush of money is also coming into the emerging markets in Asia from investors seeking yield and higher returns, boosting the stock markets in the region and keeping investment sentiment buoyant,' said Pranay Gupta, chief investment officer at ING Investment Management Asia/Pacific.
The pan-Asia index level climbed to 146 in the third quarter from 136 on a scale of zero to 200. Hong Kong's barometer jumped to 151 from 124.
