Maybank Kim Eng sees stronger market in H2 [Business Times (Malaysia)]
(Business Times (Malaysia) Via Acquire Media NewsEdge) GEORGE TOWN: Malaysia's equity market is expected to strengthen, with the FTSE Bursa Malaysia KLCI (FBM KLCI) reaching 1,940 points by the second half of the year.
Maybank Kim Eng executive director of research Ong Seng Yeow expressed the optimism, saying that the firm is sticking to its 1,940 target for the FBM KLCI.
Malayan Banking Bhd-owned Maybank Kim Eng is Asean's largest equities franchise.
"Although we had a range-bound from the FBM KLCI in the past six to nine months, we expect it to bounce back to 1,940 in the second half of the year," Ong told reporters after the opening of Maybank Investment Bank's Penang branch at Menara KWSP and launch of a new feature on its "Powerbroking" trading application called "Market Insight", designed specifically for retail investors, yesterday.
Also present were Maybank Kim Eng regional head of equities Ami Moris and Maybank Investment Bank head of retail equities for Malaysia C.K. Lim.
"We remain moderately bullish on the local equities market," Ong said, when asked on the outlook of the local market this year.
He said the strong domestic liquidity condition could remain as the underlying driving factor, coupled with the inflow of global funds.
He added that based on data tracking from EPFR Global, a provider of fund flows and asset allocation data, global fund flows are driven by developed markets and generally it flows from the emerging markets like Asia to developed market like the United States in a cycle expected to end about 52 to 62 weeks.
"Fund outflow from Asia is coming close to 60 weeks and this implies that the funds will return to Asia and it is expected to boost Asian markets," he said.
Ong also noted that Malaysia has its fundamentals to boost the market from the current FBM KLCI level of 1,860 points.
"Maybank Kim Eng sees mediumterm positives in the construction and oil and gas sectors, whereby major infrastructure projects would benefit from government investments and Petronas' Refinery and Petrochemicals Integrated Development project in Pengerang, Johor."
Meanwhile Market Insight's noticeable features are said to be the consensus data on a particular stock (where Maybank Investment Bank clients can compare Maybank's research recommendations against the consensus view) and the segmentation of stock selections into portfolios to cater for different investor risk profiles.
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