FBM KLCI could breach 1,800-point level by year-end

KUALA LUMPUR: Kenanga Investors Bhd is cautiously optimistic over the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) breaching the 1,800-point level by year-end.

Chief executive officer Ismitz Matthew De Alwis said the immediate resistance for the index would be 1,780, which is expected to be breached by October or November, before continuing upward towards 1,800 by year-end.

“I am cautiously optimistic that we can hit the 1,800-level by year-end,” he told reporters after delivering his opening address at the Financial Planning Association of Malaysia (FPAM) Signature Financial Planning Symposium yesterday.

He said among the factors influencing the local equity market would be global uncertainty over Brexit and US President Donald Trump’s protectionism policy, as well as the return of fund manager from summer holiday.

“With fund managers back from summer holiday, everybody is going to do something about their last quarter starting from October,”

I am cautiously optimistic that we can hit the 1,800-level by year-end. Ismitz Matthew De Alwis, chief executive officer

he added.

De Alwis said among local counters with attractive valuations are technology and manufacturing.

“Their prices have declined and the PE (price-earnings ratio) is looking quite interesting at the moment,” he said.

He also said blue chips, were trading at above average value at the moment, but still attractive for investors who intended to position themselves for the long term.

On Malaysian companies listing abroad, De Alwis said he supported the freedom for companies to list anywhere, but it was better for Malaysian companies to be listed on the local stock exchange first, before sub-listing on other bourses to deepen the capital market in the country and help the domestic economy grow.

Meanwhile, on the Sales and Services Tax (SST), De Alwis who is also FPAM President said the organisation was still unsure of the impact from its implementation on the financial planning industry.

“We are not clear in terms of the tax fixed for unit trust investment or any investment product . The association is waiting for an announcement before holding a further dialogue with the government on the matter,” he added.

Kenanga Investors is a whollyowned subsidiary of Kenanga Investment Bank Bhd and licensed to perform regulated activities of fund management dealing in securities (restricted to unit trust), investment advice and dealing in Private Retirement Scheme.

Themed, “Raising the Bar of Financial Professionalism”, the oneday symposium was organised by the FPAM to support the financial planning profession and to work with related financial institutions.