Time to buy battered stocks: JPMorgan

By Rupa Damodaran

Published: 2008/12/11

Now is the time for investors to buy battered stocks as the global financial crisis is expected to retreat by the second half of next year, an equity strategist says.

"We have seen the peak of selling (of the stock market) in October," said JPMorgan Asian and emerging markets equity strategist Adrian Mowat at a briefing in Kuala Lumpur yesterday.

The stock market, which took a beating in October, following panic-selling in global markets, led the local benchmark Kuala Lumpur Composite Index to a four-year low.

Valuations are cheaper compared with previous crisis, he added, but investors are staying on the sidelines.

"Malaysia is unlikely to be a leader in recovery because international markets tend to go for markets with more liquidity and China will lead the story," Mowat said.