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Weekly-Review-090223

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					      ING Funds – Weekly Review

      Equity Market                                                  Weekly Review 16/2/2009 – 20/2/2009
      The KLCI dropped 20 points or 2.2%
      lower to close at 890 points as investors                      Global Market
      concern that Dow Jones broke the
      crucial support level, 7,500. However,                         •    U.S. stocks dropped, sending the Dow Jones Industrial
      the KLCI still outperformed the region,                             Average to a six-year low, as Hewlett-Packard Co. cut its
      with a positive YTD gain of 1.5%.                                   profit forecast and concern about rising credit-card
      Average daily trading values fell 19%                               defaults dragged financial shares to the lowest level
      to RM582mn.                                                         since 1995.
                                                                     •    Bank of America Corp. and Citigroup Inc. fell 14 percent
      Fixed Income                                                        each to lead the Dow’s retreat. Prudential Financial Inc.
      The recent dovish comments on                                       slid 16 percent after losing its ability to borrow under a
      interest rate policy from BNM                                       government program because of a credit-rating
      Governor Zeti, coupled with the                                     downgrade.
      speculation on the announcement of a                           •    Wells Fargo & Co., Bank of America Corp. and Citigroup
      new stimulus package on 10-Mar-09,                                  Inc. slid as President Barack Obama’s plan to stem home
      revision of GDP and budget deficit, and                             foreclosures failed to assuage concern banks face more
      potential downgrades in emerging                                    losses.
      markets’ country ratings continue to
      plague the local bond market. The 3-                           Malaysia Market
      year benchmark was the most
      impacted, as its yield shot up by 18                           •    Puncak Niaga Holdings Bhd led gains among Malaysian
      basis points (bps) week-on-week                                     water-related stocks after the Business Times reported
      (WoW) to 2.80%, while the 5-yr and                                  that the state government of Selangor may increase its
      10-yr benchmark yields climbed 2bps                                 offer to take over their assets.
      and 5bps WoW respectively to 3.12%
                                                                     •    Fraser & Neave Holdings Bhd tumbled 13 percent as
      and 3.95%.
                                                                          Coca-Cola Co won’t renew bottling and distribution
                                                                          contracts with Fraser & Neave when they expire in
      Source for MGS levels: BondWeb 23/2/2009                            January next year.
                                                                     •    Bumiputra-Commerce Holdings Bhd. dropped as
                                                                          AmResearch Sdn. said the bank may report a larger drop
      World Index                                                         in 2008 profit because of an increase in bad-debt
                                                                          provisions at its Indonesian unit.


                                                                     Economy
                                                                     •    Producer prices in the U.S. climbed more than forecast in
                                                                          January, a gain that’s unlikely to continue as other
                                                                          figures showed further deterioration in manufacturing
                                                                          and the job market.
                                                                     •    Japan’s demand for services fell for a second month in
                                                                          December as the recession hit consumers through job
                                                                          cuts. The tertiary index, a gauge of money households
                                                                          and businesses spend on phone calls, power and
                                                                          transportation, dropped 1.6 percent from November.




This Market Review was prepared by ING Funds Berhad for information purposes. The information contained herein is derived from Bloomberg and sources
believed to be reliable. ING Funds Berhad makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any
loss arising from or in reliance upon whole or any part of this document. It should not be construed as an offer or a solicitation of an offer to purchase or
subscribe or to sell units. You are advised to read and understand the contents of the relevant Master Prospectus, Prospectus and Supplementary
Prospectus before investing. A copy of the Master Prospectus, Prospectus and Supplementary Prospectus can be obtained at our office or any of our
authorized distributors. If you are in doubt when considering the investment or the information provided, you are advised to consult a professional adviser.
      ING Funds – Weekly Review


      KLCI Index                                                     •    Malaysia’s Consumer Price Index (CPI) slowed to 3.9%
                                                                          year-on-year (YoY) in Jan-09 (Dec-08: 4.4%), the lowest
                                                                          level in 8 months marked the fifth consecutive month of
                                                                          easing, mostly driven by the series of fuel price cuts by
                                                                          the Government since Aug-08, which resulted in a
                                                                          decline of transportation costs by 2.1% YoY (Dec-08: -
                                                                          0.3% and Jul-08: +22.7%).
                                                                     •    Japan Gross Domestic Product (GDP) shrank an
                                                                          annualized 12.7% in 4Q08, the sharpest since the 1974’s
                                                                          oil shock (3Q08: -2.3%), dragged down by slumping
                                                                          exports and household consumption. As such, the Bank
                                                                          of Japan (BoJ) announced plans to begin outright
                                                                          purchases of up to ¥1trn of bank held corporate bonds
                                                                          with credit ratings of A or higher that will mature
                                                                          within a year, amongst parts of efforts to combat the
                                                                          exacerbating credit crunch and the dire economy. At the
      Commodity Index                                                     same time, the BoJ kept its call rate unchanged at 0.1%
                                                                          as widely expected in the latest Monetary Policy
                                                                          Committee (MPC) meeting. Despite the challenging
                                                                          situation, the Japanese government committed to
                                                                          provide up to US$100bn of loans to the IMF in its latest
                                                                          attempt to buttress the developing nations which have
                                                                          been hugely impacted by the prolonged global
                                                                          economic slowdown and financing difficulties. On top
                                                                          of that, the government also said that it would tap into
                                                                          its foreign currency reserves for funding, after the IMF
                                                                          called for a doubling of its lending abilities from
                                                                          US$250bn to US$500bn.
                                                                     •    Indonesia’s GDP grew 5.2% YoY in 4Q08, the slowest
                                                                          since 2Q06 (3Q08: 6.4%) on the back of the drop in
                                                                          export growth, which plummeted to 1.8% YoY (3Q08:
                                                                          14.3%), and the slowdown in domestic consumption to
                                                                          4.8% YoY (3Q08: 5.3%). In view of the exacerbating
                                                                          situation, the government now expects only 4.5-4.7%
                                                                          growth in 2009, raising expectations that authorities will
                                                                          ease monetary policy further.




This Market Review was prepared by ING Funds Berhad for information purposes. The information contained herein is derived from Bloomberg and sources
believed to be reliable. ING Funds Berhad makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any
loss arising from or in reliance upon whole or any part of this document. It should not be construed as an offer or a solicitation of an offer to purchase or
subscribe or to sell units. You are advised to read and understand the contents of the relevant Master Prospectus, Prospectus and Supplementary
Prospectus before investing. A copy of the Master Prospectus, Prospectus and Supplementary Prospectus can be obtained at our office or any of our
authorized distributors. If you are in doubt when considering the investment or the information provided, you are advised to consult a professional adviser.
      ING Funds – Weekly Review
      Equity Market Outlook
           •     We are confident to achieve our month end target
                 (refer to our monthly report) as IOI, one of the
                 overweight blue reported its result below the market
                 estimate. Beside the core earning, it was hit by forex                            Equity Market Strategy
                 losses, customer defaulting RM79mn for the                                        Re-enter when the market
                 downstream activities and forfeiture of RM73mn by                                 retrenches   to    a   more
                 terminating the purchase of Menara Citibank.
                                                                                                   reasonable valuation. Buy
           •     Further more, we don’t believe the KLCI can decouple                              on weakness.
                 from external markets, primarily the Dow Jones Index.
                 With the world largest economy continues to slide; it
                 is just a matter of time before the correction take                               Fixed Income Strategy
                 place.                                                                            Remain cautious and
           •     Technically speaking, the KLCI is still in good shape,                            defensive on credit. Trade on
                 with the 30 days MACD continue to trade above the                                 momentum.
                 50 days moving average with decent volume.
                 However, notably, the two trend lines are narrowing,
                 telling us that the potential downside is more. We are
                 looking at 850 levels for the immediate term.


      Fixed Income Outlook
           •     Following Bank Negara Malaysia Governor’s comment
                 that the 75bps interest rate cut “is frontloaded” and
                 that the current rate is accommodative, market has
                 pared down expectation of further rate cut in the
                 coming Monetary Policy Committee Meeting on 24
                 February 2009. Nonetheless, to conclude a pause at
                 this juncture would be pre-matured given the
                 weakening economy outlook. We do not rule out the
                 possibility of another 25 – 50 bps interest rate cut in
                 the 2Q 2009.
           •     On the other hand, expectation of huge stimulus
                 package renewed fears of larger government bond
                 issuances. This has put pressure on the government
                 bond market. Given this back-drop, MGS market is
                 likely to continue to witness volatility in near future.
           •     On credit market, selective high-grade corporate
                 bonds are expected to be sought after due to scarce
                 supply and yield enhancement requirements. Having
                 said that, the overall corporate bond market is
                 expected to remain sluggish as credit market
                 continues to deteriorate.




This Market Review was prepared by ING Funds Berhad for information purposes. The information contained herein is derived from Bloomberg and sources
believed to be reliable. ING Funds Berhad makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any
loss arising from or in reliance upon whole or any part of this document. It should not be construed as an offer or a solicitation of an offer to purchase or
subscribe or to sell units. You are advised to read and understand the contents of the relevant Master Prospectus, Prospectus and Supplementary
Prospectus before investing. A copy of the Master Prospectus, Prospectus and Supplementary Prospectus can be obtained at our office or any of our
authorized distributors. If you are in doubt when considering the investment or the information provided, you are advised to consult a professional adviser.

				
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