Analyst sees super bull run for KL bourse
The potential target level for next year will be at 1,691-1,780, with critical support at 1,440-1,550 level, says a market analyst
After reaching multi-year and historic highs, all key regional indices, including the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) and European markets, took a dip on Friday amid worries of a possible increase in interest rates and Ireland's debt problem.
"The potential target level for next year will be at 1,691-1,780, with critical support at 1,440-1,550 level," he said at the The Edge Personal Money Investment Forum on The Stock Market 2010 in Kuala Lumpur on Saturday.
On a more bullish note, Lock said the FBM KLCI could also surge to 1,869-1,958 level if the market barometer breaches the initial targets for 2011.
Among the key factors for the bullish outlook is the fact that retail participation is still very small despite the market's surge to new highs. Hence, when they come on board, the market will be boosted further, he said.
The engine of growth for the market, will be the construction, property, steel and plantation sectors, Lock added.
Meanwhile, Maybank Investment Bank vice president of research Wong Chew Hann said there was potential for more equity funds to flow into Malaysia.
"We expect the overnight policy rate to be stable at least until the second half of 2011 and equities are an attractive asset class during low interest rate times."
She, however, gave a lower end-2011 target of 1,660 for the FBM KLCI.
Wong said the risk factors were stronger growth and better employment in the US as well as possible capital control, especially in Asia.
On the outlook for China, Standard & Poor's director for equity research, Alexander Chia, helped ease some possible concerns among participants at the event, saying China may experience a soft landing. - Bernama
A super bull run is on the horizon for the Kuala Lumpur stock market with the 30-stock benchmark index potentially surging up to 1,780 level towards the end of next year, market analyst S.N. Lock said.
After reaching multi-year and historic highs, all key regional indices, including the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) and European markets, took a dip on Friday amid worries of a possible increase in interest rates and Ireland's debt problem.Lock, however, said the decline after the vigorous rally and consolidation was much needed for the FBM KLCI to continue with its uptrend after reaching a historic high of 1,528.01.
"The potential target level for next year will be at 1,691-1,780, with critical support at 1,440-1,550 level," he said at the The Edge Personal Money Investment Forum on The Stock Market 2010 in Kuala Lumpur on Saturday.
On a more bullish note, Lock said the FBM KLCI could also surge to 1,869-1,958 level if the market barometer breaches the initial targets for 2011.
Among the key factors for the bullish outlook is the fact that retail participation is still very small despite the market's surge to new highs. Hence, when they come on board, the market will be boosted further, he said.
The engine of growth for the market, will be the construction, property, steel and plantation sectors, Lock added.
Meanwhile, Maybank Investment Bank vice president of research Wong Chew Hann said there was potential for more equity funds to flow into Malaysia.
"We expect the overnight policy rate to be stable at least until the second half of 2011 and equities are an attractive asset class during low interest rate times."
She, however, gave a lower end-2011 target of 1,660 for the FBM KLCI.
Wong said the risk factors were stronger growth and better employment in the US as well as possible capital control, especially in Asia.
On the outlook for China, Standard & Poor's director for equity research, Alexander Chia, helped ease some possible concerns among participants at the event, saying China may experience a soft landing. - Bernama
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