Friday, November 25, 2011

Affin Research: KLCI can hit 1,700 end-2012

KUALA LUMPUR (Nov 25): The FTSE Bursa Malaysia KLCI (FBM KLCI) is still able to hit 1,700 by end of next year despite concerns over the global economy slipping into recession, an analyst said.

Affin Investment Bank Bhd Head of Retail Research Dr Nazri Khan Adam Khan said the country, backed by high liquidity supported by the government-linked investment companies and strong interest on the Economic Transformation Programme (ETP) projects, was still resilient compared to regional counterparts.

"The downside that we made is actually less compared to Indonesia and Singapore, this means we are more resilient," he told BERNAMA on the sidelines of the 16th Malaysian Capital Market Summit here on Friday.

Nazri Khan said commodity prices are expected to remain firm next year and would push up stocks, especially in PLANTATION [] and oil and gas sectors, which makes up about 40 per cent of Malaysia's market capitalisation.

He said implementation of ETP projects had attracted huge market interest due to its focus on longer term gains.

This was evidenced by foreign funds being the net sellers in October with RM1.4 billion foreign inflows, he said.

He said the FBM KLCI gained nine per cent year-on-year in September since ETP was launched last year.

Overall, he said, the country was still in a good position to overcome the challenging global uncertainties and sectors like property, CONSTRUCTION [] and tourism would benefite from the ETP. - Bernama

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