Maybank IB Expects FBM KLCI At 1,710 Points Year-End

PETALING JAYA (Selangor, Malaysia), Sept 3 (Bernama) -- Maybank InvestmentBank (Maybank IB) expects Bursa Malaysia to be flattish this year with the FTSE Bursa Malaysia KLCI (FBM KLCI) pegged at the 1,710 points level at end-2016. Head of Retail Equities, CK Lim said the local market currently lacks a catalyst and the FBM KLCI's near-term direction would be very much driven by external developments. "External developments that investors are monitoring include uncertainties in the timing of an US interest rate hike and outcome of the US Presidential Election on Nov 8," he told reporters on the sidelines of Maybank IB's Market Outlook 2H 2016 here Saturday. Meanwhile, Maybank Kim Eng Research Pte Ltd, Executive Director for Research, Ong Seng Yeow said another round of an Overnight Policy Rate (OPR) cut by Bank Negara Malaysia (Malaysia's Central Bank) would be possible next year. He said the first milestone to watch would be the outcome of the US election as this would set the tone for the global trade environment and security of regional markets. He also said the government was doing well in keeping the local economy steady considering external volatilities, but, should the outcome of the US election unleash a worst case scenario, it would increase the likelihood of an OPR cut. During his presentation earlier, Ong said Maybank Kim Eng favours sectors such as Real Estate Investment Trust (REITs) as the weak consumer sentiment has bottomed and spending should improve ahead, as well as, construction. "We remain positive on the on the construction sector because we expect the strong award of jobs in infrastructure and major transit-oriented developments to continue. "For the first half of this year, job awards were seven times more than what we observed in the first half of 2015," he added. Maybank IB's stock picks include KLCC Property Holdings Bhd, Gamuda Bhd, Sunway Construction Group Bhd, Gadang Holdings Bhd and Econpile Holdings Bhd. --BERNAMA