Malaysia's bourse set to enjoy bullish streak
Malaysia's bourse set to enjoy bullish streak
KUALA LUMPUR (AFP): The Malaysian bourse is set to enjoy a bullish streak this year on the back of its attractive interest rates and strong growth, a global market strategist was reported saying Sunday.
The Kuala Lumpur Stock Exchange's 100-share weighted composite index is expected to gain about 200 points from its present level, said David Fuller, the author and publisher of international investment letter,Fullermoney.
The composite index jumped 19.58 points to close at 1,244.13 in the week to Friday.
However, the lesser second board which had dominated interest in the second part of last year, could be at a "rest pace" this year, the Bernama news agency reported Fuller telling a stock market seminar here Saturday.
Fuller has forecast world market trends for the past 27 years through his London-based research house, Chart Analysis Ltd.
He said the local bourse could expect investment capital from the United States and Britain this year, with foreign fund managers picking up main board stocks.
Other regional markets including Singapore, Taiwan, Indonesia, the Philippines and Hong Kong were also main targets for US fund managers, he added.
Fuller gave high ratings for financial stocks. He cautioned that there may be a technical correction during the year but believed that overall 1997 would be a good year for the market.
Banking stocks have remained favorites with punters on anticipation of more mergers among local banks, a trend set by top brokerage Rashid Hussain Bhd's November merger of its DCB Bank with Maybank Bhd's Kwong Yik Bank.
On the Malaysian ringgit, Fuller said the local unit would be the most favored currency this year due to its high yield, the country's political stability, low inflation and promising economic growth.
The ringgit would be boosted by foreign investments in the country's planned multimedia hub, which has already attracted world leading Microsoft Inc., he said.
He expects the ringgit to rise marginally against the U.S. dollar and appreciate against other major currencies including the yen and German mark.