Malaysia Rerated

June 2008

Standard & Poor's Equity Research recently raised its weighting on Malaysia to 'marketweight' from 'underweight', citing fair market values, improved domestic liquidity and more benign external market conditions. According to the agency, market consolidation over the past few months had improved the domestic picture and whetted potential appetite for the Malaysian market. In response, S&P has raised its year-end target for the Kuala Lumpur Composite Index to 1400 points from 1300 points. S&P's Equity Research had on March 11 this year downgraded Malaysia to 'underweight' on market uncertainty following the March 2008 general elections.