FBM KLCI to test 1,720 by year-end: Macquarie
The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to test the 1,720 points level, by year-end, on the back of sustained economic growth and a possible 12 per cent increase in corporate earnings, said Yeonzon Yeow, Head of Strategy, Macquarie Capital Securities (Malaysia) Sdn Bhd.
Last year, the FBM KLCI improved 19.3 per cent, supported by a 23 per cent growth in corporate earnings, buoyed by strong domestic news flow, which was well timed and carefully crafted with the government's announcement of the Economic Transformation Programme, New Economic Model, 2011 Budget and Tenth Malaysia Plan.
"Strong fundamentals positively drove the equity market in 2010. A move to keep inflation in check, a strong ringgit and improving foreign direct investment and domestic direct investment would attract foreign investors into the local stock market," Yeow said at the half-day "Invest in Malaysia, Invest in Kuala Lumpur" forum held today.
He anticipated that investors would pick up oil & gas, electrical and electronics, timber, construction, property and automotive stocks, due to its long-term gains, as a result of Japan's earthquake and Middle East unrest.
On the local bourse, the key barometer ended Friday at 1,540.74. -- Bernama
Last year, the FBM KLCI improved 19.3 per cent, supported by a 23 per cent growth in corporate earnings, buoyed by strong domestic news flow, which was well timed and carefully crafted with the government's announcement of the Economic Transformation Programme, New Economic Model, 2011 Budget and Tenth Malaysia Plan.
He anticipated that investors would pick up oil & gas, electrical and electronics, timber, construction, property and automotive stocks, due to its long-term gains, as a result of Japan's earthquake and Middle East unrest.
On the local bourse, the key barometer ended Friday at 1,540.74. -- Bernama
Comments
Post a Comment