FEVER World Cup which starts on Tuesday is expected to have an impact on the performance of global stock market transactions, including Malaysia.
Based on historical records, the stock market will be quiet and often exhibit poor performance along the sidelines of sporting events such as the world's number one focus and investor interest shifted to the event.
The high stakes for the match gain the investor’s attention and focused on the game, especially those who like to make money in the short term.
Such a situation can be seen with the decline in the average number of trades recorded in the stock market over the period.
TA Securities head of research, Kaladher Govindan said, traditionally the last World Cup was the gloomy not only in domestic market but also in global markets.
He said the impact on the stock market can be seen over a month prior to the event.
Based on a review of 15 indices differ in the region, it is generally show market benchmarks such as the Dow Jones Industrial Average, S & P 500, Hang Seng, Nikkei, FBM KLCI, FSSTI, JCI, SET, PComp, Kospi, Shangai Composite, Stoxx Europe 600, and DAX have exhibited lackluster performance.
"The frequency correction in the market among the 15 major indices in the nine-time World Cup held earlier, show 65.7 percent of potential investors take caution during the period before the last World Cup.
"The average index change is detected within a month before the World Cup held in the contraction of two per cent," he said in a research note issued TA Securities.
Kaladher said, in that period, most stock markets in Southeast Asia, including Malaysia, Singapore, Indonesia and the Philippines also noted shortcomings in the World Cup three times in the past.
He said the benchmark index of the local stock market; the FBM KLCI was an average decline of 4.4 per cent for three World Cup matches (2002-2010).
When the last World Cup, the review of the 15 index found the average performance of trading on the local stock market recorded a decline of 25.4 percent for the five-time World Cup (1994-2010).
In terms of the performance of the FBM KLCI index, the nine-time World Cup is held, the local market benchmarks averaging -0.1 percent.
However, shares certain sectors such as consumer, media, cigarettes and liquor to benefit the World Cup.
World Cup soccer tournament helped boost the growth of advertising expenditure (ADEX), which had a positive impact on media-related stocks.
According to historical records, the gross ADEX in May to July in World Cup record high share of the total ADEX average year, between 26 to 27 percent compared to other years that is around 25 percent.
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