Greece: A Silver Lining for Bursa?

After reading the possibility of Malaysia becoming another Greece in the former posting, it is with relief that we read that our stock market can indeed benefit from this Grecian fall-out.

Let us read this report from Bloomberg.

"Malaysia, which is seen as a defensive market, could benefit if concerns over the Greek fiscal crisis continues.

Asian stocks ex-Japan could fall as much 17 per cent due to the Greek fiscal crisis according to a BNP Paribas report.

The bank said that US$6 billion (RM19.1 billion) may be withdrawn from funds investing in Asian shares next month, wiping out most of the estimated US$7 billion of inflows this year and recommended that investors buy Malaysian shares. [So who would be losing out? Possibly China.]

“If regional markets are weak, investors might look toward more defensive markets,” said Hwang-DBS Group senior analyst Wong Ming Teck.

OSK Research head of research Chris Eng said however that the Greek crisis will blow over quite quickly and the Asian markets will take the cue from the US.

“Malaysia is always a defensive market and a safe market to go into generally,” he said.

Most Asian equity markets closed higher yesterday due to upbeat earnings reports on Wall Street and expectations that a bailout for Greece would be ready soon.

So let us see whether the oracle readers are right.