UOB-OSK upbeat on Malaysian stocks

 

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) is expected to move higher at between 1,350 and 1,400 points next year, says UOB-OSK Asset Management Sdn Bhd

"We believe next year the market will be rangebound in terms of the index which could be 5 to 10 per cent upside with stock picks being important," its executive director/chief executive officer Lim Suet Ling said yesterday.

She was speaking to reporters after the launch of the OSK-UOB Unit Trust Management Bhd's new fund, OSK-UOB Asean Fund, in Kuala Lumpur yesterday.

"Although the local market is still underweight in general, we are positive about it. This is also in view of the positive gross domestic product (GDP) forecast for next year," Lim said.

Most analysts are upbeat over the country's economic growth with a forecast of between 5 per cent to 7 per cent for 2010, on the back of a resilient domestic market, which contributed 60 per cent to 70 per cent of the GDP.

In line with the global recovery, Lim said plantation, oil and gas, banks and construction stocks would benefit from it.

"Our view of the plantation stock is positive going forward due to lower production based on the weather factor and also the government's effort to raise the awareness of palm oil," Lim said. - Bernama