Screenshots: How about 980 points?

What can happen in mere months in the stock market? The oft-followed advisory by CLSA Asia-Pacific Markets has some indicators.

In March, around GE2008 that saw BN's greatest defeat in history, CLSA had a year-end target of 1,150 points for the Kuala Lumpur Composite Index (KLCI). The composite index, which has been on a sliding trip last week, was lowered to 1,121 points yesterday.

On the other hand, as reported in NST-Business Times yesterday, CLSA Asia-Pacific Markets has since July 7 adjusted its projection and cut its year-end target for the KLCI by 15% to 980 points.

If that happens, it would probably be the lowest estimate in the market.

More, the foreign research house also downgraded its rating on the Malaysian market to "underweight" from "neutral" in the medium term.

Reasons? Political uncertanities, inflationary pressures and an economic slowdown.

Key pointer raised by CLSA is this: "Investors have always viewed Malaysia as a politically stable country and a defensive market. However, the current political bickering portrays a negative perception to foreigners that will cause further de-rating."

Go figure why Malaysia screwed up this bad.