FBM KLCI may exceed 1,800 points by year-end, says Kenanga
KUALA LUMPUR: Kenanga Investors Bhd expects key benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) to trade rangebound, rising to 1,780 points by October and breaching 1,800 points by year-end, on better clarity of government policies and project rollouts.
“Many investors are keeping a close watch on the indirect impacts from the trade war between the United States and China. So, things are moving at a slower pace,” said Kenanga Investors chief executive officer Ismitz Matthew De Alwis.
“By October, as the government an- nounces the mid-term review of the 11th Malaysia Plan and in November (tabling of the 2019 Budget), we would be clearer on government policy changes and project rollouts.
“Hopefully by then, investor confidence would resume and the FBM KLCI would rise, surpassing 1,780 and possibly 1,800 by yearend,” he said on the sidelines of the Annual Signature Financial Planning Symposium, here, yesterday.
De Alwis is also Financial Planning Association of Malaysia (FPAM) president.
On the “Asean Connect” prospect, De Alwis said FPAM was supportive of the initiative mooted by the government, Bursa Malaysia and the Securities Commission to link up with other bourses in Asean.
Finance Minister Lim Guan Eng recently questioned why Bursa Malaysia should only link up with Singapore and not other regional stock exchanges.
Many investors are keeping a close watch on the indirect impacts from the trade war between the United States and China.
ISMITZ MATTHEW DE ALWIS Kenanga Investors Bhd chief executive officer
“I think Asean Connect would offer better market capitalisation opportunity rather than just linking up with only one stock exchange in the region,” he said, following Prime Minister Tun Dr Mahathir Mohamad’s announcement to review the previous government’s proposal to link up Bursa Malaysia with the Singapore Stock Exchange.
Former prime minister Datuk Seri Najib Razak had proposed the establishment of a trading link between the stock exchanges of Malaysia and Singapore.
On the Sales and Services Tax (SST), De Alwis said FPAM was consulting the Finance Ministry on whether the sale of unit trusts and insurance policies would be taxed.
“Prior to the imposition of the Goods and Services Tax (GST) in 2015, unit trusts and insurance policies were not subject to the SST. But when the GST came into place, life and medical insurance policies were subject to six per cent tax. So we are seeking updates from the government.”
On another matter, FPAM chief executive officer Linnet Lee said as at December last year, there were only 2,680 certified financial planners (CFPs) and more were needed in the future.
“We encourage more to take up the CFP certification programme.
“Every year, planners have to be re-certified to keep up with technological changes in the financial industry,” she said, adding that FPAM was an affiliate of the Financial Planning Standards Board Ltd.