CIMB Market outlook Strategy - April fund flows: strongest inflows in 12 months

Based on EPFR data for April, Indonesia received US$138m in fund inflows, about 2.6x more than Emerging Asia. Consequently, Indonesia weightings in both AsiaxJ and GEM funds hit above the average for 2004-2009 (to date), despite aggregate holdings remaining 60% lower yoy. Much of the money has been flowing into commodity stocks (nearly triple in weighting); cyclicals are a distant second. Defensives are clearly falling out of favour. Maintain OVERWEIGHT on the market and bottom-up index target of 1,900 for end-2009.