The equity market is expected to be relatively good for first quarter of 2018 as analysts believe the spill-over effect of the favorable seasonal factor coupled with improved buying interest/momentum to be the supporting factor for the positive uptrend.
Emphasising that the trend is a short-run, Kenanga Investment Bank Research said as at end-2018 the FBM KLCI index is targeted to reach 1,860 points.
“Besides, the undemanding valuation of FBM KLCI against regional peers is likely to attract more foreign interest on top of the favorable uptrend of ringgit and crude oil.
“We believe investors should start nibbling if and when the benchmark index retraces below 1,765, the research house said. buying interest/momentum
The firm also said 2018 could be an eventful year on the global backdrops including normalisation in interest rate, and uncertainties over the new tax reform in US.