Bursa seen trading at 1,700-1,800 levels by year-end
PUTRAJAYA: Permodalan Nasional Bhd (PNB) expects Bursa Malaysia to trade between 1,700 and 1,800 points by yearend on the back of strong fundamentals.
This was also depending on multiple external variables such as geopolitical aspects, the 2018 Budget as well as corporate earnings and debts, said group chairman Tan Sri Abdul Wahid Omar at PNB’s third-quarter results announcement, here, yesterday.
Wahid said the ringgit was still undervalued given the country’s strong fundamentals but its outlook was on the positive side.
PNB has revised its gross domestic product growth projection to 5.3 per cent this year from 4.3 per cent initially.
On PNB’s budget wishlist, Wahid said: “What we anticipate and what we wish are two different things.
“That said, as a fund manager,
obviously we would like efforts to continue in supporting the (financial) ecosystem and measures that further support the development of the capital markets,” he said.
“We are also hopeful that the government would look at some incentives (that could help propel) venture capitals,” he added.
PNB president and group chief executive Datuk Abdul Rahman Ahmad said he was fully aware of the current challenging environment within the property development segment. But he was certain that there would be demand for the Merdeka PNB 118 project upon completion in 2021.
“Yes, the property development is challenging but our project is iconic and there is always demand for iconic developments,” he said.
“In fact, we are set to announce a new international hotel for the development in the fourth quarter and that would further enhance the quality of the development.”
Asked if the group would be entering the United States market as part of its international portfolio push, Rahman said it was not the right time yet.
“As you know, the US market is reaching record highs and that could be a bit risky... when we want to step into international space, we want it to be in the best terms of generating returns,” he said.
Rahman added that properties and equities investments were still very much a focus for the group, in line with its long-term goals to reduce its cash position and increase equity holdings.