KUALA LUMPUR: Rakuten Trade predicts that the FTSE Bursa Malaysia KLCI (FBM KLCI) index could surpass the 1,700 mark if foreign fund inflows return to normal, according to Rakuten Trade.
The FBM KLCI closed 0.96 per cent lower at 1,539.7 points at midday.
Its head of research Kenny Yee Shen Pin said that a stable influx of foreign funds would improve Malaysia's position in the stock market.
"We expect the FBM KLCI to reach 1,660 points by the end of this year based on a 15.5 times price-to-earnings ratio (PER) with a 16 per cent earnings growth. "If foreign fund inflows return to normal, we may see the index surpassing the 1,700 mark based on just a 16 times PER," he said during the virtual media briefing on Malaysia's Second Quarter (2Q) Market Outlook today.
Nevertheless, Yee said that although foreign investors are returning to Asia, they lack staying power because of ongoing global uncertainties, such as the interest rates drama, Middle East war, geopolitical tension, and more.
He also added that the more records Wall Street breaks, the more vigilant Malaysia may have to be as the US remains the epi-centre of global market volatility.
