August 16, 2021

Rakuten Expects FBM KLCI To Reach 1,650 By Year End

 Rakuten Trade Sdn Bhd projected the FTSE Bursa Malaysia KLCI (FBM KLCI) benchmark index to hit 1,650 by the end of this year.

The expectation is likely to be supported by stronger income growth as well as the re -entry of some foreign fund flows into the region.

According to Head of Research, Kenny Yee said the positive assessment along with account improvement activities would increase investor interest at a time when the local bourse was showing a dismal performance due to political unrest and the spread of Covid-19.

Yee also expects that sentiment towards the local market will stabilize following the government’s move to allow the opening of some business activities to boost sentiment towards the equity market.

Looking at the current valuation, the Malaysian equity market is seen as one of the cheapest and offers significant discounts among the ASEAN markets.

In 2020, Malaysia's outflow of foreign funds recorded a record high of RM24 billion while year -on -year the flow amounted to RM5.9 billion ($ 1.4 billion).

“Looking at the current situation and scenario, I do not expect there to be any further downside trend towards the market until the end of the year,” Yee added.