Outlook for stock mkts still bearish: Karl-Thomson Sec

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Asian markets are recovering form their early morning lows. Patrick Shum , Chief Strategist at Karl-Thomson Securities said, "I think that the outlook for the stock markets is still bearish." People do not believe the paper as such after the financial crisis and prefer to put their money into different kinds of commodities, so we can see a strong oil prices and gold prices, said Shum while speaking to CNBC-TV18

Here is a verbatim transcript of the interview with Patrick Shum on CNBC TV18. Also see the accompanying video.

Q: What do you account for a bit of a positive sentiment coming in for Asian markets barring Shanghai?

A: We can see some profit taking from yesterday's market trade and also from this morning. I think after the strong rebound last week the sentiment will become cautious because most of the investors are waiting for USD 700 billion US dollar rescue plan from the USA.  But because the parliament is still looking at the plan and it is not approved yet, most of the investors remain on the sidelines and prefer to take profits first.

Q: In the current global scenario the key question is about liquidity. How are you seeing funds actually panning out all across Asia at this point in time?

A: I think that the outlook for the stock market is still bearish. People do not believe the paper as such after the financial crisis. They prefer to put their money into different kinds of commodities, so we can see a strong oil prices and also a strong gold price.

That means that the money is leaving from the stock markets. So I expect global stock markets to have 15-20% further correction for the rest of this year.